DBJ: Another Dallas Investment Firm Raising More than $1B for New Fund

Dallas private equity financier Newstone Capital Partners is aiming to raise $1.25 billion for a fourth fund, according to a recent regulatory filing.

The firm invests in what’s known as “mezzanine” financing for private equity firms looking for more debt to bridge the amount needed to buy out a company. This generally higher-risk debt comes with higher interest rates by the rush of firms offering it since the 2008 financial crisis. They often also have the ability to convert this debt into equity.