- Metalmark Capital made a growth equity investment in T. Parker Host in late 2018, coinciding with Host’s acquisition of the 254-acre Avondale Shipyard in New Orleans.
- Host remains a family-led, majority family-owned maritime logistics company with over 30 East and Gulf Coast locations and rapid recent employee growth.
- The Avondale Shipyard is central to Host’s strategy to build a major multimodal logistics hub with waterfront access and planned connections to six Class I railroads.
- Metalmark’s undisclosed minority stake reflects private equity interest in infrastructure-adjacent logistics platforms and supports Host’s expansion while raising questions about project scale, risks, and competitive dynamics.
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This transaction marks a strategic growth milestone for T. Parker Host (“Host”), enabling accelerated expansion via acquisition and infrastructure investment. By partnering with Metalmark Capital, Host gains not only capital but also access to investor networks and expertise. The timing with the Avondale Shipyard acquisition (October-November 2018) suggests coordination: Metalmark’s investment likely supports Host’s bid to develop the shipyard into a major inland logistics hub. [1][10]
From an ownership standpoint, the Host family maintains substantial control—Adam Anderson remains majority shareholder, while 4th generation family members stay in leadership roles. This structure could yield tension between growth aspirations and preserving legacy operations. Metalmark’s role is more supportive—commensurate with growth capital rather than full takeover. [1]
Avondale Shipyard is central to the strategic vision: 254 acres, over one mile of waterfront, five docks, its location on the Mississippi, and plan for connectivity to six Class I railroads via the New Orleans Public Belt underlie the potential for transloading, breakbulk and bulk commodities operations. The investment in Avondale aligns with broader supply chain shifts favoring inland logistics and multimodal hubs. [1][7]
Metalmark’s investment underscores private equity’s interest in infrastructure-adjacent logistics platforms. Host already operated at scale—30+ locations, expanded employee base from ~150 to over 500 in several years, listed on Inc. 5000 fast-growth list. Metalmark’s investment falls squarely within its infrastructure, industrials, and transportation focus areas. [4][7]
Open questions include: the specific size of Metalmark’s equity share and valuation at the time; the capital expenditure plan for Avondale; Host’s regulatory and environmental risks tied to shipyard redevelopment; competitive threats (other logistics/hub platforms); and Host’s ability to integrate new operations while preserving service quality and safety.
Supporting Notes
- Metalmark Capital’s strategic investment in Host announced December 7, 2018, aligned with Host’s acquisition of the Avondale Shipyard from Huntington Ingalls Industries via partnership with Hilco Real Estate. [1][4]
- Avondale Shipyard spans 254 acres, with five docks, over one mile of waterfront, substantial warehousing and storage capabilities. [1][7]
- Host plans to connect Avondale to six Class I railroads via the New Orleans Public Belt, via a Cooperative Endeavor Agreement with the Port of New Orleans. [1][7]
- Host was founded in 1923, is Norfolk, Virginia-based, operates over 30 locations along the U.S. East and Gulf coasts, and has grown from ~150 to over 500 employees in recent years. [1][7]
- Ownership structure: Adam Anderson remains majority shareholder; Andrew Caplan and Kelsey Host (4th generation family members) stay partners. [1][7]
- Metalmark Capital manages approximately $3.7 billion in aggregate capital commitments and focuses on infrastructure & industrials, agribusiness and healthcare; this investment fits its growth capital strategy in the middle-market. [1][4]
- Financial terms of the transaction (amount invested, valuation) were not disclosed publicly. [1][10]
Sources
- [1] www.prnewswire.com (PR Newswire) — 2018-12-07
- [4] www.pehub.com (PE Hub) — 2018-12-07
- [7] peprofessional.com (Private Equity Professional) — 2018-12-10
- [10] mergr.com (Mergr) — 2018-11-29