Preston Hollow is an independent specialty finance company focused on directly originated and negotiated municipal project finance transactions.
Based upon Stone Point’s experience in the broader credit markets, the firm identified Preston Hollow’s focus on the specialty municipal finance market as a growth opportunity that was not efficiently funded by traditional commercial bank or capital markets participants. Furthermore, Stone Point’s experience with “restarts” of proven, successful financial services management teams was valued by the executives of Preston Hollow.
Stone Point advised Preston Hollow management as the team’s proven municipal finance business plan, which had previously been pursued within a larger financial conglomerate, was refined to be efficiently executed as a specialty independent finance company.
Stone Point partnered with local family office investors to provide the initial round of institutional equity capital for Preston Hollow. Over the subsequent two years, Stone Point has assisted management with raising over $500 million of additional equity capital commitments from Stone Point limited partners. Additionally, Stone Point has assisted management with introductions to banks, rating agencies and potential co-investors that can provide debt capital funding to Preston Hollow originated transactions.
Stone Point worked with the founders of Preston Hollow to establish long-term employee equity incentive plans. Management and Stone Point developed governance structures appropriate for a privately financed firm with substantial institutional capital shareholders.
Stone Point has been a valuable partner providing advice, capital and networking support during the establishment of Preston Hollow in the specialty municipal finance marketplace.
Jim Thompson is not currently an investor in any Stone Point funds. Jim Thompson has, and may have in the future, other business relationships with Stone Point and its affiliates. This includes Jim Thompson’s role as Founder, Chairman & Chief Executive Officer for Preston Hollow, which is a portfolio company of Trident VI.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.