How Private Equity Is Fueling Maritime Infrastructure Growth: The T. Parker Host Case

  • Metalmark Capital made a strategic, undisclosed investment in 95-year-old family-owned maritime services firm T. Parker Host in December 2018.
  • The deal coincided with Host’s acquisition of the 254-acre Avondale Shipyard in New Orleans to develop a major multimodal logistics hub.
  • The Host family, led by majority shareholder Adam Anderson, retained control and key leadership roles despite the outside capital.
  • The partnership targets growth in bulk and breakbulk terminal infrastructure, underpinned by planned rail connectivity and rising demand for resilient logistics assets.
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This investment represents a classic growth-capital/private equity strategy executed in the infrastructure/logistics sector. By partnering with Metalmark Capital, T. Parker Host secured not only capital but also strategic resources and industry expertise. Metalmark’s history of investing in founder-or family-owned businesses and infrastructure/industrial operations fits tightly with T. Parker Host’s profile.

The Avondale acquisition is central to the strategic logic. The 254-acre shipyard, with over one mile of waterfront, five docks, and existing warehousing, offers the scale and physical assets needed to serve as a regional or national logistics hub. The planned connection to six Class 1 Railroads via the New Orleans Public Belt underpins a multimodal strategy—critical in today’s supply-chain environment.

Despite the non-disclosure of deal terms, certain structural risk-return implications emerge: Host preserved majority family control, which suggests Metalmark likely acquired a minority or significant but non-controlling stake. Such structures often ensure founder alignment but can limit upside leverage unless structured with preferred returns or exit provisions.

Strategically, this deal positions T. Parker Host to capitalize on increased demand for resilient and efficient bulk/logistics infrastructure, especially along key maritime-rail corridors. However, many open questions remain: how much investment will go into upgrading Avondale (and similar assets) vs. acquiring new ones; what is the timeline and economics of the six-rail connectivity; how will demand for breakbulk commodities evolve; and how will competition from large integrated terminal operators and public ports respond?

Supporting Notes
  • T. Parker Host acquired controlling interest in the Avondale Shipyard (254 acres) in New Orleans via a partnership with Hilco Real Estate; the site features five docks and over one mile of waterfront.
  • Metalmark Capital made a strategic investment, undisclosed financial terms, in T. Parker Host in December 2018.
  • Adam Anderson remained majority shareholder; fourth-generation family members Kelsey Host and Andrew Caplan remained as partners post-investment.
  • T. Parker Host had expanded from approximately 150 to over 500 employees over five years, operates over 30 locations along U.S. East and Gulf Coasts; largest bulk agent in U.S. and largest non-union stevedore in South Florida.
  • Host plans future connectivity of Avondale to six Class 1 Railroads via New Orleans Public Belt under a binding Cooperative Endeavor Agreement with Port of New Orleans.
  • Metalmark Capital manages funds with about $3.7 billion in aggregate capital commitments and focuses on infrastructure & industrials, agribusiness, and healthcare.

Sources

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