Firms & Funds

Bernhard Capital quickly back in market targeting $1 bln for second fund

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Teachers Retirement System of Louisiana, private equity
A cross section of downtown Baton Rouge on July 16, 2016. Reuters/Joe Penney
  • Firm: Bernhard Capital Partners
  • Fund: Bernhard Services Fund II
  • Target: $1 bln
  • Amount Raised: N/A
  • Placement Agent: Metric Point, Moelis

Bernhard Capital Partners is back in market in a quick turnaround with its second fund, this time targeting $1 billion, according to a person with knowledge of the process.

Bernhard closed its debut fund last year on $750 million for investments services companies in the industrial, energy and infrastructure sectors in the middle market. Fund I is generating a 20 percent net internal rate of return across 17 investments, the person said.

Bernhard, Baton Rouge, Louisiana, was formed in 2013 by Jim Bernhard, founder and former chairman and chief executive of Fortune 500 energy giant Shaw Group. Bernhard formed the firm along with Jeff Jenkins, former chief operating officer of Shaw Environmental and Infrastructure.

Fund I was already at least half deployed by the time it held a final close last year.

Bernhard seeks investments in services around energy and industrials, which ties the firm less to oil-price volatility, a source with knowledge of the firm told Buyouts last year.

“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.”

Metric Point Capital, formed recently by three senior executives from Atlantic-Pacific Capital, and Moelis & Co. are placement agents on Bernhard Services Fund II. Atlantic-Pacific was placement agent on Bernhard’s first fund.

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, according to Bernhard’s website.

Jenkins did not return a request for comment Monday.

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

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