Stonepeak, Bernhard to Acquire Cleco in $6B Louisiana Energy Deal

PINEVILLE, LA – April 27, 2026 – Louisiana's energy landscape is set for a significant transformation as investment firms Stonepeak and Bernhard Capital Partners today announced an agreement to acquire Cleco Group LLC. The deal, valued at approximately $6 billion, will transfer ownership of the regulated electric utility from a consortium that has held it for the past decade, comprised of Macquarie Asset Management, British Columbia Investment Management Corporation (BCI), and Manulife Investment Management.

The acquisition marks one of the most substantial investments in Louisiana's critical infrastructure in recent years, placing the 90-year-old utility under new stewardship. Cleco, which serves nearly 300,000 customers across 24 Louisiana parishes, will gain access to the deep capital reserves of Stonepeak, a global infrastructure giant, and the regional operational expertise of Baton Rouge-based Bernhard Capital Partners. Upon completion, Stonepeak will hold the majority interest in the company.

Local Roots, Global Backing

For Cleco's 1,200 employees and its extensive customer base, the new owners have emphasized a message of continuity and stability. According to the announcement, Cleco will remain headquartered in Pineville, locally managed, and will retain its current employees with existing compensation and benefit levels. Crucially, the utility will continue to be regulated by the Louisiana Public Service Commission (LPSC), which provides oversight on rates and operations.

This blend of local commitment and global financial power is at the core of the new partnership's pitch. Jeff Jenkins, Founder and Partner at Bernhard, framed the investment as a continuation of his firm's commitment to its home state. "This investment reflects our continued investment in Louisiana—its people, its economy and its future," Jenkins said. "Our partnership combines Bernhard's operational expertise and deep local knowledge alongside Stonepeak's experience with similar mission-critical companies to build upon Cleco's century of service in our state."

Cleco's leadership echoed this sentiment, highlighting the potential for accelerated growth and improved infrastructure. "With support from new partners Stonepeak and Bernhard, we can strengthen system reliability and encourage regional economic growth," said Bill Fontenot, President and CEO of Cleco. "This transaction marks an important day for our community, our customers and our company."

Building on a $3 Billion Modernization Legacy

The acquisition follows a decade of significant capital investment under the outgoing ownership consortium. Since acquiring Cleco in a 2016 deal valued at $4.7 billion, the Macquarie-led group has poured approximately $3 billion into modernizing the utility's operations and hardening its grid against Louisiana's challenging weather conditions.

"It has been our privilege to have served as a steward of Cleco over the past 10 years as the company has navigated both challenges, such as maintaining high service standards during COVID-19 and the hurricanes of 2020 and 2021, and better times," stated Aaron Rubin, a Senior Managing Director at Macquarie Asset Management.

That investment has culminated in a landmark grid resiliency plan. In November 2025, the LPSC unanimously approved Cleco's five-year, multi-phase strategy to further strengthen its infrastructure. The initial phase, set to begin this year, includes over 550 projects with an estimated cost of $257.6 million. These initiatives involve replacing aging equipment, strategically undergrounding vulnerable power lines, and elevating substations to protect them from flooding—critical upgrades for a state frequently in the path of major storms.

The Price of Power and Regulatory Scrutiny

The nearly $6 billion valuation for Cleco underscores a surging investor appetite for regulated utilities, which offer stable, predictable cash flows. The price represents a significant premium over the 2016 sale, reflecting both the investments made over the past decade and the soaring demand for electricity, driven in part by the rapid expansion of data centers and the artificial intelligence boom.

While the new owners have pledged stability, the transaction will face close scrutiny from state regulators and consumer advocates, particularly concerning the impact on customer bills. The LPSC, which must approve the sale, will be tasked with ensuring the deal serves the public interest. The approval process for the previous sale took approximately one year to complete.

Louisiana customers have already seen rate adjustments. In June 2024, the LPSC approved a settlement that led to a 10.6% rate increase for residential customers, a move largely attributed to the costs of losing a major wholesale customer. Furthermore, the funding for the new grid resiliency plan is expected to be recovered through a new "Grid Resilience Rider" on customer bills, which will also require LPSC approval. The new owners will inherit the responsibility of implementing these plans while navigating the delicate balance between necessary investment and ratepayer affordability.

Powering Louisiana's High-Tech Future

The acquisition arrives as Louisiana positions itself as an emerging hub for high-performance computing and data centers, industries with immense power needs. The new ownership appears strategically aligned to capitalize on this trend, viewing Cleco not just as a stable utility but as a key engine for economic development.

"We are excited to extend our track record of investing in Louisiana's energy infrastructure and believe Cleco is well positioned to be a driver of economic growth within its service territory," said Rob Kupchak, Senior Managing Director at Stonepeak.

This forward-looking strategy also includes adapting to the ongoing energy transition. Cleco already offers a renewable energy subscription program, "GO Cleco," which sources power from one of the state's largest solar facilities. Stonepeak, with a portfolio that includes approximately 13 gigawatts of renewable energy capacity globally, brings extensive experience in integrating clean energy assets. The partnership with Bernhard, which focuses on accelerating energy sector innovation, signals that Cleco's modernization will likely continue at a rapid pace, preparing the grid for the demands of a new technological era.