Dallas-based Preston Hollow Capital, which focuses on specialty financing deals with cities, has closed on a $225 million capital boost.
The funding comes from global investment giant HarbourVest, which has about $42 billion in assets under management. Preston Hollow now has a total of $650 million in committed equity capital after the deal announced Wednesday.
The firm targets special municipal deals, which are different – and more complicated – than typical general obligation or revenue bonds cities issue. Preston Hollow invests in certain public-private partnerships, affordable housing projects, and other financing deals that fund everything from toll roads to other infrastructure.
“We like it all,” Preston Hollow’s CEO Jim Thompson said in an interview.
The company is about “mid-way” through a project with the city of Irving that will result in a new hotel being built next to the convention center there. Preston Hollow has invested less than $10 million in the deal that will total north of $100 million in funding, Thompson said.
The investment from HarbourVest highlights how large institutional firms are searching for new places to earn yield as the stock market is showing signs of overheating and central banks around the globe are keeping interest rates historically low.
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