GREENWICH – Strategic Value Partners LLC (SVP Funds), a global alternative investment firm with approximately $22 billion of assets under management, last week announced that it has acquired a majority of the equity interests in New Frontera Holdings LLC, a 530-MW natural gas-fired combined-cycle generation facility located in Mission, Texas. Financial terms of the transaction were not disclosed.
SVP Funds, which initially invested in Frontera through its first lien term loan prior to the company’s 2021 restructuring, converted a portion of its position into equity and has since increased its ownership over time, most recently acquiring a majority controlling stake.
SVP will acquire Frontera as part of its strategic partnership with EverGen Power, a power generation acquisition and asset management firm established in 2024 to support SVP with power generation investments across North America.
“By drawing on our deep restructuring expertise and knowledge of the power sector, SVP was well positioned to establish a controlling stake in Frontera,” said David Geenberg, head of North American corporate investments at SVP. “Furthermore, through our partnership with EverGen, we will be able to drive value creation over the years to come.”
Dave Freysinger, managing partner of EverGen Power, described how important Frontera is to providing power in Texas.
“Frontera is a critical source of dispatchable power in the Lower Rio Grande Valley, one of the fastest-growing regions in ERCOT,” Freysinger said. “We are excited to bring our resources and expertise to drive best-in-class operations.”
Frontera, which began commercial operations in 1999, features two highly efficient, natural gas-fueled combined cycle GE 7FA turbines. It is a key dispatchable asset providing reliable, low-cost power to Texas, supporting robust growth in power demand.
SVP is a global alternative investment firm that uses a combination of sourcing, financial, and operational expertise to unlock value in its portfolio companies. It manages approximately $22 billion in assets under management and, since inception, has invested more than $57 billion of capital.
