Macquarie sells stake in US utility provider

As part of a consortium, Macquarie Asset Management is selling its stake in Cleco, an electricity utility firm in the US, to Stonepeak and Bernhard Capital Partners.

The consortium includes Macquarie Asset Management, British Columbia Investment Management Corporation (BCI) and Manulife Investment Management.

"Cleco's progress in recent years reflects its strong collaboration with Louisiana communities, regulators and political leaders to build a more reliable system that meets customers' evolving needs and supports economic growth across its service territory," Macquarie senior managing director and head of Americas energy infrastructure Aaron Rubin said.

"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 such as the growth phase the region has seen over the last few years."

BCI executive vice president and global head of infrastructure and renewable resources Lincoln Webb said the consortium worked closely with Cleco's management team to modernise its operations through long-term, targeted capital investments.

The deal will bring investors with capital, industry expertise and a local presence to support Cleco in continuing to provide safe, reliable service to its customers.

"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, while providing dependable service to its customers," Stonepeak senior managing director Rob Kupchak said.

Bernhard founder and partner Jeff Jenkins said the partnership combines the firm's operational expertise and local knowledge alongside Stonepeak's experience with similar mission-critical companies to build upon Cleco's century of service in Louisiana.

"This investment advances Bernhard Capital Partners' focus on strengthening the nation's critical energy infrastructure, building more resilient communities and accelerating innovation across the energy sector," Jenkins said.

Cleco president and chief executive Bill Fontenot added: "With support from new partners Stonepeak and Bernhard, we can strengthen system reliability and encourage regional economic growth. This transaction marks an important day for our community, our customers and our company."