News Summary
In a notable shift for Louisiana’s economy, four long-standing companies have been acquired by out-of-state private equity firms. While concerns about local decision-making arise, local firms like Bernhard Capital Partners and Black Bay Partners are gaining traction, raising substantial funds to invest in key sectors such as energy. This evolution signals a growing homegrown investment ecosystem that aims to strengthen Louisiana’s economy while addressing challenges posed by corporate takeovers.
Louisiana – In a significant shift for the local economy, four longstanding companies in south Louisiana have been acquired by out-of-state private equity firms in the last three months. This wave of acquisitions has raised concerns among civic leaders regarding the potential loss of local decision-making power and the impact these changes may have on the community.
Despite the concerns surrounding corporate acquisitions, the landscape of private equity investment in Louisiana is evolving, with a burgeoning group of local firms raising substantial funds to create a homegrown investment ecosystem. Among these, Bernhard Capital Partners (BCP), established over a decade ago in Baton Rouge, stands out as the largest local private equity firm, having raised more than $5.5 billion across five funds and currently owning a portfolio of 21 companies.
BCP has been particularly active in the energy sector, including its recent acquisition of Delta Utilities, which has expanded its operations by purchasing Entergy’s natural gas business. This move exemplifies the growing role of local private equity firms in capturing market opportunities within their regions.
Another player in the local private equity scene is Black Bay Partners, based in New Orleans. This firm is in the process of launching its third fund, with an ambitious goal of raising over $500 million to support its investments. Currently, it manages 15 energy-focused companies, specifically targeting innovative industry solutions such as fuel recycling and carbon capture. Black Bay Partners typically invests between $10 million and $50 million per project, focusing on transformative technology.
In addition to these firms, Carr’s Hill Partners has raised $210 million for its initial fund and previously garnered around $200 million to invest in four target companies. This firm specializes in family-owned regional businesses that are facing succession challenges, providing much-needed management support for growth and improvement.
LongueVue Capital, founded in 2001, has also played a significant role in the local investment landscape, raising more than $850 million across five funds. The firm boasts a diverse portfolio of middle-market companies, further contributing to Louisiana’s economic growth.
While local private equity firms may be smaller in scale compared to national giants like Blackstone, which manages over $1 trillion in assets, they are gaining traction for their investment prowess. This shift is notable as institutional investment entities, including national endowments and pension funds, are beginning to consider Louisiana firms for their investment allocations, akin to those located in larger metropolitan areas.
The growth of private markets is evident, with assets under management increasing from less than $3 trillion in 2010 to a remarkable $11.7 trillion in 2022. Local private equity firms are capitalizing on their regional expertise, focusing primarily on energy and industrial services, which are critical sectors for Louisiana’s economy.
As these local firms expand their operations, the potential for attracting additional out-of-state investments also increases, reinforcing the business community in Louisiana. Benson Capital Partners, owned by Gayle Benson, has notably raised over $100 million for ventures in capital and real estate investments. There are also several smaller venture capital funds based in New Orleans aimed at bolstering local tech startups.
The influx of private equity investment and the establishment of a dynamic local investment environment are viewed positively by many, with hopes that they will foster a vibrant economic landscape while addressing community concerns regarding corporate takeovers. Local leaders remain vigilant to ensure that the growing presence of these investment firms strengthens Louisiana’s economy while safeguarding local interests.
Deeper Dive: News & Info About This Topic
- NOLA: South Louisiana Private Equity Firms
- LA Illuminator: Private Equity
- Pension & Investments: Louisiana State Employees Commits $100 Million to Private Equity
- Business Wire: Stonepeak Acquires Interest in Woodside’s Louisiana LNG
- Wikipedia: Private Equity
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
