Key Takeaways
- • Stonepeak Partners and Bernhard Capital Partners are acquiring Louisiana-based utility Cleco Power in a transaction valued at approximately $5.75bn to $6bn, with announcement expected imminently.
- • The seller consortium—comprising Macquarie Asset Management, British Columbia Investment Management Corporation, and Manulife Investment Management—is exiting after roughly a decade of ownership during which approximately $3bn was invested in grid modernization and resilience projects.
- • Cleco Power operates 2.6 gigawatts of regulated electricity generation capacity across five Louisiana facilities, positioned as a critical regulated utility asset within the US power infrastructure base.
- • The deal reflects accelerating institutional investor appetite for regulated utility assets driven by rising electricity demand from data centers, industrial reshoring, and electrification trends, following comparable recent transactions including the $10.7bn AES Corp acquisition.
- • Stonepeak manages $88bn in assets under management; Bernhard Capital Partners manages more than $6bn, combining deep infrastructure expertise with local Louisiana market knowledge and operational capabilities.
Summary
Stonepeak Partners and Bernhard Capital Partners are nearing completion of an acquisition of Cleco Power, a Louisiana-based regulated utility, in a transaction valued at approximately $5.75bn to $6bn. The deal represents a significant transaction in the US utility sector and signals continued institutional investor confidence in regulated power assets amid structural demand tailwinds.
The seller consortium includes three major institutional investors: Macquarie Asset Management, British Columbia Investment Management Corporation, and Manulife Investment Management. According to available reporting, these investors are exiting their ownership stake after approximately a decade, during which they deployed roughly $3bn in capital toward grid modernization, resilience initiatives, and system hardening. In November 2025, the Louisiana Public Service Commission unanimously approved what Cleco described as the largest grid resiliency investment in its history, underscoring the infrastructure enhancements undertaken during the ownership period.
Cleco Power operates regulated electricity generation assets totaling 2.6 gigawatts of capacity across five facilities throughout Louisiana. The utility's regulated status and essential infrastructure positioning make it strategically attractive to long-duration infrastructure investors seeking stable, predictable cash flows. Rob Kupchak, Senior Managing Director at Stonepeak, emphasized the firm's "deep appreciation for the critical role Cleco plays in the communities it serves," noting that Cleco "is well positioned to be a driver of economic growth within its service territory." Bernhard Capital Partners' involvement reflects founder Jeff Jenkins' stated commitment to "continued investment in Louisiana, its people, its economy and its future," combining Bernhard's operational depth with Stonepeak's infrastructure investment capabilities.
The transaction occurs within a broader market context of accelerating deal activity in power generation and regulated utilities, driven by surging electricity demand from data center buildouts, domestic industrial reshoring, and grid electrification initiatives. Recent comparable transactions include BlackRock's Global Infrastructure Partners and EQT's acquisition of AES Corp for approximately $10.7bn. Stonepeak manages approximately $88bn in assets under management across infrastructure and real assets, while Bernhard Capital Partners manages more than $6bn, positioning the partnership to execute complex, long-duration infrastructure investments.
The transaction remains subject to customary regulatory approvals from the Louisiana Public Service Commission. Cleco will maintain its headquarters in Pineville, Louisiana, preserve its existing workforce, and continue operating under Louisiana state regulation. Advisers to the transaction include Greenhill (Mizuho affiliate) and Simpson Thacher & Bartlett for Stonepeak; Centerpoint Partners and Latham & Watkins for Bernhard; and Goldman Sachs, Moelis, Kirkland & Ellis, and Phelps Dunbar for the selling consortium.
The seller consortium includes three major institutional investors: Macquarie Asset Management, British Columbia Investment Management Corporation, and Manulife Investment Management. According to available reporting, these investors are exiting their ownership stake after approximately a decade, during which they deployed roughly $3bn in capital toward grid modernization, resilience initiatives, and system hardening. In November 2025, the Louisiana Public Service Commission unanimously approved what Cleco described as the largest grid resiliency investment in its history, underscoring the infrastructure enhancements undertaken during the ownership period.
Cleco Power operates regulated electricity generation assets totaling 2.6 gigawatts of capacity across five facilities throughout Louisiana. The utility's regulated status and essential infrastructure positioning make it strategically attractive to long-duration infrastructure investors seeking stable, predictable cash flows. Rob Kupchak, Senior Managing Director at Stonepeak, emphasized the firm's "deep appreciation for the critical role Cleco plays in the communities it serves," noting that Cleco "is well positioned to be a driver of economic growth within its service territory." Bernhard Capital Partners' involvement reflects founder Jeff Jenkins' stated commitment to "continued investment in Louisiana, its people, its economy and its future," combining Bernhard's operational depth with Stonepeak's infrastructure investment capabilities.
The transaction occurs within a broader market context of accelerating deal activity in power generation and regulated utilities, driven by surging electricity demand from data center buildouts, domestic industrial reshoring, and grid electrification initiatives. Recent comparable transactions include BlackRock's Global Infrastructure Partners and EQT's acquisition of AES Corp for approximately $10.7bn. Stonepeak manages approximately $88bn in assets under management across infrastructure and real assets, while Bernhard Capital Partners manages more than $6bn, positioning the partnership to execute complex, long-duration infrastructure investments.
The transaction remains subject to customary regulatory approvals from the Louisiana Public Service Commission. Cleco will maintain its headquarters in Pineville, Louisiana, preserve its existing workforce, and continue operating under Louisiana state regulation. Advisers to the transaction include Greenhill (Mizuho affiliate) and Simpson Thacher & Bartlett for Stonepeak; Centerpoint Partners and Latham & Watkins for Bernhard; and Goldman Sachs, Moelis, Kirkland & Ellis, and Phelps Dunbar for the selling consortium.
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