- In late 2018, Metalmark Capital took a minority growth stake in T. Parker Host to fund expansion tied to Host’s acquisition of the Avondale Shipyard in New Orleans.
- Avondale is a 254-acre waterfront terminal site with multiple docks, significant warehouse/storage capacity, and plans to connect to six Class 1 railroads via the New Orleans Public Belt Railroad.
- Host’s founders and CEO Adam Anderson kept majority ownership and operational control, while deal terms were not disclosed.
- The partnership fits Metalmark’s infrastructure/industrials strategy and supports Host’s multimodal terminal and logistics growth plan.
Read More
T. Parker Host’s strategic partnership with Metalmark Capital in November–December 2018 represents a well-structured growth capital deal that preserves founder control while accessing external capital for transformative infrastructure investment. By backing Host’s acquisition and redevelopment of the Avondale Shipyard, Metalmark enabled Host to expand both its physical footprint and multimodal logistics capabilities. The Avondale site, with its river access, multiple docks, substantial waterfront, and planned connectivity to several Class 1 railroads, provides high strategic leverage for bulk, breakbulk and commodity shipping businesses.
Metalmark’s investment reflects its core strategy of investing in privately held, founder or family‐owned businesses, particularly in infrastructure and industrial sectors with long life assets. Host, with 95 years of operating history, over 30 U.S. locations, and a diverse service offering (agency, terminals, stevedoring, vessel operations, logistics), offers multiple revenue streams and scalability. The underlying capital‐intensive nature of port, terminal and waterfront operations suggested the need for patient capital and support beyond pure financial investment—expertise, governance, network—which Metalmark is positioned to provide.
There are, however, inherent risks and trade‐offs. With infrastructure and logistics assets, especially ones involving environmental and regulatory approvals, the lead time to realize returns is long. Avondale’s utilization must ramp; tenant mix, throughput, and connectivity (rail, road, river) will directly affect returns. Moreover, integration across terminals, marine services, stevedoring and agency operations can be complex—culture, labor, safety, and regulatory exposures matter. Metalmark’s minority position adds dependency on existing leadership’s execution.
Strategic implications: for Host, this partnership likely improved access to capital (equity and potentially debt at better terms), supported ambitious capital expenditures, and provided a backbone for national expansion. For Metalmark, it diversifies and strengthens its industrial/infrastructure portfolio in the U.S. supply chain sector, especially as trade and logistics are evolving. The deal demonstrates a model for PE‐backed infrastructure growth where control is preserved by founders, but scale and investment are unlocked.
Open questions remain that would clarify potential investment outcomes: What specific valuation and governance rights did Metalmark receive (board seats, veto rights)? What operating KPIs has Host set for Avondale’s utilization and revenue targets? How has the macro environment (trade policies, supply chain disruptions, labor costs) since 2018 been impacting Host’s projections? Has Metalmark or Host executed further exits, follow‐on financings, or refinancings of debt tied to these assets?
Supporting Notes
- Host acquired a controlling interest in the Avondale Shipyard from Huntington Ingalls Industries through a partnership with Hilco Real Estate; the site is 254 acres with five docks, over one mile of waterfront, and significant warehousing and storage capacity.
- The investment coincided with this acquisition and plans for connecting Avondale to six Class 1 railroads via the New Orleans Public Belt Railroad under a binding Cooperative Endeavor Agreement with the Port of New Orleans.
- At the time of deal, Host had expanded from ~150 to over 500 employees over five years, has more than 30 locations across the U.S. East and Gulf Coasts, and had been recognized on the Inc. 5000 list of fastest growing companies.
- Founding leadership remained majority shareholders: Adam Anderson remained majority owner, with Andrew Caplan and Kelsey Host continuing as partners. Metalmark acquired a minority interest; terms were undisclosed.
- Host operates across multiple lines: maritime agency services, terminal operations, stevedoring, Jones Act vessel operations, and logistics services.
- Metalmark Capital manages ~$3.7 billion in committed capital and targets infrastructure & industrial sectors, especially in founder/family‐run businesses.