Bernhard Capital Partners is capitalizing on a surge in US regulated utility carve-outs driven by escalating power demand from data centers and digital infrastructure. This trend sees large utilities selling minority stakes in smaller, non-core regional assets, often just below the 20% threshold requiring regulatory approval.

The move allows utilities to raise capital for grid upgrades and new infrastructure while shedding less strategic operations. Brookfield's 20% stake in Duke Energy Florida and KKR's investment in AEP's transmission assets exemplify this shift. These mid-market transactions, typically valued below $3 billion, offer investors access to stable infrastructure with classic characteristics: regulated equity returns providing downside protection and inflation shielding.