Kirkland Advises Cleco on Strategic Acquisition by Stonepeak and Bernhard Capital

Stonepeak, a leading alternative investment firm specializing in infrastructure, and Bernhard Capital Partners, a private markets investment firm focused on essential infrastructure sectors, have finalized an agreement to acquire Cleco Group LLC, a regulated electric utility serving Louisiana. The transaction, announced on April 27, 2026, marks a significant shift in ownership for Cleco, which has been under the stewardship of a consortium comprising Macquarie Asset Management, British Columbia Investment Management Corporation (BCI), and Manulife Investment Management for nearly a decade. Kirkland & Ellis LLP served as legal advisor to Cleco throughout the acquisition process.

Cleco’s Role and Operational Continuity

Headquartered in Pineville, Louisiana, Cleco is a regulated electric utility with a workforce of 1,200 employees. The company serves approximately 298,000 residential, commercial, and industrial customers across 24 parishes in Louisiana. With a history spanning more than 90 years, Cleco has established itself as a critical energy service provider and economic driver in the region, prioritizing grid reliability and customer service.

Under the terms of the acquisition, Cleco will maintain its operational independence and local management structure. The company’s headquarters will remain in Pineville, and its service footprint across Louisiana will remain unchanged. Employees will retain their positions, along with existing compensation and benefit levels. Regulatory oversight by the Louisiana Public Service Commission will continue, ensuring compliance with state utility standards. Cleco has emphasized its commitment to sustaining its state-leading reliability metrics while providing safe, affordable electricity to its customer base.

“Cleco provides safe, reliable and affordable electricity to our customers in support of their quality of life, and we take pride in the work of our dedicated, local employees who support the communities in which we all live,”

Bill Fontenot, President and Chief Executive Officer of Cleco

Strategic Rationale and Investor Expertise

The acquisition brings together two investment firms with deep experience in infrastructure and energy sectors. Stonepeak, known for its focus on infrastructure and real assets, has previously advised on high-profile transactions, including the acquisition of a co-controlling stake in IFCO Group, a global supplier of reusable packaging containers. Bernhard Capital Partners, meanwhile, specializes in building market-leading infrastructure platforms across essential sectors, aligning with Cleco’s long-term operational and strategic goals.

The transaction is expected to provide Cleco with enhanced access to capital and industry expertise, supporting its ongoing grid modernization efforts. Over the past decade, under the ownership of Macquarie Asset Management, BCI, and Manulife Investment Management, Cleco has prioritized resilience-focused infrastructure upgrades. The new ownership structure aims to build on these efforts, positioning Cleco as a key player in Louisiana’s energy landscape and broader economic development.

Legal and Regulatory Framework

Kirkland & Ellis LLP played a pivotal role in advising Cleco on the transaction, reflecting the firm’s expertise in energy and infrastructure deals. The Kirkland team was led by corporate lawyers John Pitts and Kersten Kober, alongside debt finance lawyer Rohit Chaudhry, capital markets lawyer Julian Seiguer, and tax lawyers Lee Morlock and Joe Tobias. The legal advisory process underscored the complexity of the deal, particularly given Cleco’s status as a regulated utility and its significance to Louisiana’s energy infrastructure.

The acquisition is subject to customary regulatory approvals, though no specific timeline for closure has been disclosed. Industry observers note that such transactions typically require review by state utility commissions, federal energy regulators, and potentially antitrust authorities, depending on the scope of the deal. Cleco’s regulated status and its role as a critical service provider add layers of scrutiny to the approval process, though the company’s operational continuity plans may ease regulatory concerns.

Broader Market Implications

The acquisition of Cleco reflects a broader trend of private equity and infrastructure-focused investment firms targeting regulated utilities as stable, long-term assets. Utilities like Cleco, which serve defined geographic regions with steady demand, offer predictable revenue streams and opportunities for operational improvements. The involvement of Stonepeak and Bernhard Capital Partners signals confidence in Cleco’s existing management and infrastructure, as well as the potential for growth in Louisiana’s energy sector.

For Louisiana, the transaction could have significant economic implications. Cleco has positioned itself as an economic development engine in the state, supporting local businesses and industrial growth through reliable energy supply. The new ownership structure is expected to reinforce this role, with both Stonepeak and Bernhard Capital Partners emphasizing their commitment to local partnerships and long-term investment. The deal also highlights the attractiveness of Louisiana’s energy market to institutional investors, particularly those with expertise in infrastructure and utility operations.

What Comes Next

While the transaction has been announced, the deal remains subject to regulatory approvals, which could extend the timeline for finalization. Cleco’s leadership has emphasized that no immediate changes to operations, customer service, or employee structure are expected during this period. The company’s focus will remain on maintaining its reliability standards and supporting its customer base across Louisiana.

For Stonepeak and Bernhard Capital Partners, the acquisition represents a strategic expansion of their portfolios into regulated utilities, a sector that has garnered increasing attention from infrastructure investors. The firms’ combined expertise in operational support and capital deployment could position Cleco for further modernization and growth, particularly as energy demands evolve in the coming years. Industry analysts will be watching closely to see how the new ownership structure influences Cleco’s long-term strategy, particularly in areas such as grid resilience, renewable energy integration, and customer service innovation.

The acquisition also raises questions about the future of utility ownership models, particularly as private equity and infrastructure firms continue to seek stable, long-term assets. Cleco’s transition from a consortium of institutional investors to a partnership between two specialized firms may set a precedent for similar transactions in the regulated utility space. For now, however, the focus remains on ensuring a smooth transition and maintaining the high standards of service that Cleco’s customers have come to expect.