<ARTICLE> 5 <CIK> 0001029534 <NAME> HEI PREFERRED FUNDING, LP <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> FEB-04-1997 <PERIOD-END> MAR-31-1997 <CASH> 0 <SECURITIES> 121,286 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 1,213 <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 121,286 <CURRENT-LIABILITIES> 0 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 103,093 <COMMON> 18,193 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 121,286 <SALES> 0 <TOTAL-REVENUES> 1,534 <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,534 <INCOME-TAX> 0 <INCOME-CONTINUING> 1,534 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,534 <EPS-PRIMARY> 0 <EPS-DILUTED> 0