The Legacy of Jim Bernhard: A Business Visionary
When Jim Bernhard sold The Shaw Group to CB&I in 2013, many speculated he might retire, enjoying the fruits of his labor. After all, nearing 60, Bernhard had transformed a small pipe fabrication company based in Baton Rouge into a mammoth enterprise employing 25,000 people, generating $6 billion in annual revenue, and expanding its influence worldwide across various sectors, including industrial infrastructure and disaster mitigation services. Given his wealth and success, a leisurely retirement or a shift to politics—where he was a significant Democratic Party donor—seemed like a reasonable next step.
A New Venture: Bernhard Capital Partners
Instead of stepping back, Bernhard chose to move forward with vigor, assembling a team of top executives from The Shaw Group to launch Bernhard Capital Partners. This private equity firm, now with $5.5 billion under management, has become the largest firm of its kind between Houston and Atlanta and is recognized as one of the fastest-growing in the United States.
In just over a decade, Bernhard Capital has launched five investment funds, attracting significant backing from institutional investors and accumulating a portfolio of 21 companies. Remarkably, even after the Shaw Group’s peak, many of Bernhard Capital’s companies employ nearly 20,000 people, highlighting the firm’s sustained impact in the marketplace.
Building an Empire: The Story of The Shaw Group
Bernhard’s journey began in 1986 with the founding of The Shaw Group as a pipe and steel fabricator. The company quickly diversified, moving into construction and energy services and going public in the 1990s. This expansion saw the acquisition of over 30 companies, significantly increasing Shaw’s reach and capabilities, including major players like IT Group and Westinghouse Electric Corp.
The narrative of The Shaw Group is well known, but what often gets less airtime is how Bernhard leveraged this foundation into his next venture. He was known for understanding large-scale operations, a trait that drove the growth of companies like The Lemoine Company, which he acquired and helped triple in size.
Innovating in Private Equity
For Bernhard, running a private equity firm better suited his ambitions compared to the constraints of a publicly traded entity. He often expressed his frustration with the short-term focus demanded by quarterly earnings reports during his time at Shaw. At Bernhard Capital, he could adopt a longer-term vision, one that emphasized building sustainable companies rather than merely chasing fleeting profits.
Jeff Jenkins, who co-founded Bernhard Capital alongside Bernhard, explained this philosophy well: “Being private, it is not about quarterly earnings and revenues, but building great companies to last forever.” This ethos guided the firm as it continued to evolve, capturing opportunities that publicly traded firms might overlook.
Impact on Local Economies
In Louisiana, the impact of Bernhard Capital is profound; 10 of its portfolio companies are based in the state, supporting nearly 7,000 jobs. Among the firms are Epic Piping and ATC Associates, both of which are integral to the local economy. Bernhard Capital initially launched with just four companies, yet it quickly catapulted into new areas, including regulated utilities.
The firm has since acquired seven natural gas, water, and wastewater utilities, solidifying its footprint across the southern U.S. Delta Utilities, which recently acquired Entergy’s natural gas business for $484 million, exemplifies these strategic expansions.
A Big Picture Perspective
Bernhard’s approach involved a comprehensive understanding of business dynamics, a trait noted by many of his colleagues. Jerry Hebert, CEO of Grace Design Studios, expressed his admiration, stating, “He was one of the smartest guys I ever met.” He recalled a lunch where Bernhard shared insights on growth and expansion that reshaped his own strategic vision.
“While most of us were focused on making a living, he was focused on growing companies,” Hebert remarked. The outcome has propelled Grace Design to acquire several firms and expand its presence.
A Lasting Influence
Even in his passing on November 16, 2022, Bernhard’s influence remains palpable in the business landscape of Louisiana, particularly as local firms strive to sustain and expand their successes. Those who worked closely with him emphasize how his vision will continue to foster growth and innovation in the region.
Reflecting on Bernhard’s legacy, Jenkins noted, “We are just getting started.” With a current fund targeting $2 billion, Bernhard Capital is well-positioned to continue its trajectory, developing into one of the notable players in the middle market of private equity.
Jim Bernhard’s journey—from shaping The Shaw Group to establishing Bernhard Capital—exemplifies a relentless drive to innovate, invest, and uplift local economies, embedding a significant legacy that will resonate for years to come.
