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Bernhard Capital raises more than $700 mln for second fund

  • Firm: Bernhard Capital Partners
  • Fund: Bernhard Industrial Services Fund II
  • Target: $1 bln
  • Amount Raised: Over $700 mln
  • Placement Agent: Metric Point Capital, Moelis & Co.

Bernhard Capital, launched in 2013 by the former CEO of Shaw Group, has collected more than $700 million for its second fund, according to a person with knowledge of the situation.

The Baton Rouge, Louisiana, firm is targeting $1 billion for its second fund, the person said. Metric Point Capital and Moelis & Co are placement agents on the fundraising.

The firm closed its debut fund in 2016 on $750 million and was about half deployed by the time of final closing, a source told Buyouts last year.

Bernhard invests in providers of services to the energy and industrial sectors, which ties its investments less to oil-price volatility, a source told Buyouts in a prior interview.

“They’re doing the construction and engineering and maintenance of things like power plants and refineries,” the source said. “It’s not like they’re trying to time the cycle. If a company is building a new refinery, spending billions of dollars … those companies still need to service their assets; they still need to have maintenance work done, engineering work done.”

In August, Bernhard said Claire Babineaux-Fontenot, a former executive vice president and global treasurer at Walmart Stores, joined the firm as an operating partner, according to Greater Baton Rouge Business Report.

Jim Bernhard and Shaw’s management sold Shaw Group in 2013 to Chicago Bridge & Iron. Bernhard grew the company from a small pipe-fabrication business into a Fortune 500 energy services company, Bernhard’s website says.

Action Item: Bernhard Capital’s Form ADV here: http://bit.ly/2pPsCRS

A cross section of downtown Baton Rouge, Louisiana, on July 16, 2016. Photo courtesy Reuters/Joe Penney