Preston Hollow Community Capital

PHCC is a cool shop if you are interested in direct infrastructure debt investing. 

High-level, they structure and make direct debt investments in tax-exempt debt-eligible infrastructure projects, particularly in the real estate space. Most of their investments are 'BBB' and below on the credit spectrum and feature an element of construction risk. What makes them unique is that few platforms lend/invest on a tax-exempt basis (most tax-exempt investors are large mutual funds, which aren't always able to take a long-term position due to fund flow dynamics). Altogether, this benefits PHCC in the following manner:

• PHCC has tax-exempt debt appetite (i.e. their LPs have some type of tax exposure to US interest earnings income)
• Tax-exempt debt translates into lower borrowing costs for borrowers due to tax advantages (i.e. PHCC is more competitive on pricing than traditional lenders/infra debt investors)
• Unlike a traditional tax-exempt bond, which is funded at full/up-front, PHCC is able to offer borrowers drawdowns to minimize carry during construction and other creative solutions, which is only possible because PHCC has permanent capital (unlike high yield mutual funds)
• The tax-exempt direct lending space is immature, with PHCC's only competitors being a few banks (namely Barclays, JPM, MS, and RBC)
• Due to supply/demand dynamics in tax-exempt direct lending, the tax-exempt bonds PHCC originates and invests in are effectively "mispriced" (through some form of yield, up-front fee, warrants, etc.) compared to a traditional public market issuance of tax-exempt bonds
• While elements of the financing may look like a loan, PHCC is technically buying bonds with CUSIPs, which allow them to sell or syndicate their "mispriced" positions to high yield mutual funds at a premium (typically post construction or after any "creative" financings elements fade away)

Full disclosure, I don't work at PHCC, but I do work at one of the banks with a tax-exempt direct lending arm. Overall, PHCC seems like an excellent opportunity and their investment team is comprised on bankers from reputable shops (GS, JPM, BofA, etc.). If they weren't based in Dallas I would seriously consider working there.