Strategy
Preston Hollow Capital seeks to deploy capital where we believe the best opportunities can be found on a risk-adjusted basis. Today, we are focused in certain sectors of the municipal bond market that include real estate, senior living, education, infrastructure, general government and economic development. Our investment size varies, but our transactions generally range from $10-$100 million.
Representative Credit Types
Real Estate
Special assessments / special tax transactions with proven developers
Senior Living
Construction and rehabilitation needs for independent living, assisted living, and memory care facilities
Economic Development
Tax increment, tax credit and other economic development incentive financings for developing and completed projects
Education
Education related projects including student housing, public and private education institutions and charter schools
Infrastructure
Primarily debt investments in infrastructure related projects including transportation, safety, social and other projects
General Government
General government needs sometimes require a special capital provider. PHC often fills that role in general obligation, lease appropriation or other needs.
Target Investment Characteristics
Credit
- Collateral-backed financings
- real estate
- contracts
- revenues
- Investment with the outlook for credit appreciation
- Construction risk OK
- Debt-focused with some equity appetite
- Distressed situations OK
- Unrated
Unique Structures Offered
- Drawdown bonds over construction period
- Stepped coupons
- Taxable bridge to tax-exempt bonds
- Master facilities financings
- PHC participation across capital stack including equity
- Bridge to EB-5 or tax credits
Security Instrument
- Hold sizes from $10-$100 million+ (target range is $20-$50 million)
- 10-30 year debt periods
- Fixed-rate or variable-rate
- Tax-exempt or taxable debt
- Private placements or limited offerings
- CUSIP bond preferred / loan acceptable