Former CEO of ORIX USA establishes Preston Hollow Capital

January 8
6:57 PM 2014

Jim Thompson, the former Chief Executive Officer of ORIX USA has launched his own investment company called Preston Hollow Capital, PE HUB reported. Thompson worked with ORIX USA for 22 years and served for 10 years as its CEO.

Preston Hollow is based in Dallas and will focus on fixed income, venture capital and hedge funds. With committed capital amounting to $100 million, the newly-formed investment company intends to invest like a private equity firm. It plans to purchase operating businesses while also giving support to operating partners.

On December 31, Thompson departed from ORIX Corp subsidiary, ORIX USA. He launched Preston Hollow on January 1. The name of the company refers to a historic trail that has been used in Texas for centuries.

Thompson has provided the $100 million himself to his new company. He said he had mixed feelings about leaving his former company. The report quoted him as saying, "I left behind people who I worked with for a very long period of time. And successfully. That's what makes it difficult. But it is exciting to do something new."

Thompson added that he is in discussions with institutional sponsors for a potential partnership. Preston Hollow may also follow ORIX's lead by investing in managers themselves. ORIX invested in Mariner Investment Group and RED Capital Group, the report said.

With Thompson at the helm, ORIX acquired investment bank Houlihan Lokey in a deal valued at $500 million. The acquisition, done in 2005, was the first investment of ORIX in an operating firm. Thompson said that was a very good investment and that he was proud of it.

Preston Hollow will still need to determine the amount it plans to invest for every deal. However, Thompson said it will provide debt or equity. It will also be adding 25 executives at the managing director level to its team this year.

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