Stonepeak and Bernhard Approach Deal for Cleco Power
A consortium comprising Stonepeak Partners and Bernhard Capital Partners is nearing an agreement to acquire Louisiana-based utility Cleco Power in a transaction valued at approximately $5.75bn to $6 billion, according to a report by Bloomberg cited in Private Equity Wire. The seller group includes Macquarie Group, British Columbia Investment Management Corp., and Manulife Investment Management, with sources indicating a potential announcement as early as Monday.
Deal Details
The transaction involves Cleco Power, which operates regulated electricity generation assets across five facilities in Louisiana, boasting a total capacity exceeding 2.6 gigawatts. Cleco Power serves as part of the broader US utility infrastructure base, reflecting its role in the state’s regulated power sector. None of the parties involved have commented publicly on the negotiations, and the deal would be subject to regulatory approvals, as per the report.
Company and Sector Background
Cleco Power’s ownership has included long-term infrastructure investors, underscoring its appeal as a core asset in the US regulated utilities space. This potential acquisition occurs amid growing investor interest in power generation assets, driven by rising electricity demand from data centres, industrial reshoring, and electrification trends, as noted in the source material. The sector has experienced increased deal activity, with infrastructure investors targeting stable, long-duration cash flows linked to regulated utilities.
Recent Market Trends
If completed, this deal would follow a series of recent large-scale utility transactions, including BlackRock’s Global Infrastructure Partners and EQT’s agreement to acquire AES Corp in a deal valued at roughly $10.7bn, according to Private Equity Wire. Such activity highlights the ongoing attractiveness of utility infrastructure for investors seeking reliable returns. Widely-known context in the infrastructure sector includes the general stability of regulated utilities, which provide predictable revenue streams due to long-term contracts and regulatory frameworks.
