A global investment firm that manages about $22 billion in assets said it has acquired a majority of the equity interests in New Frontera Holdings, which includes a 530-MW natural gas-fired combined-cycle generation station in Mission, Texas. Terms of the transaction were not disclosed.
Strategic Value Partners (SVP), founded in 2001 and with its main offices in Greenwich, Conn., New York City, and London in the UK, announced the deal on May 7. SVP, which also has presence in Tokyo, Japan, and Dubai in the United Arab Emirates, said its SVP Funds managed funds portfolio completed the acquisition. SVP has invested more than $57 billion in capital over the past 25 years.
The global investment firm initially invested in Frontera through its first lien term loan prior to the company’s 2021 restructuring. SVP after reorganizing converted a portion of its position into equity and has since increased its ownership over time. SVP on Thursday said it will acquire Frontera as part of its strategic partnership with EverGen Power, a power generation acquisition and asset management firm established in 2024 that supports 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.”
“Frontera is a critical source of dispatchable power in the Lower Rio Grande Valley, one of the fastest-growing regions in ERCOT.” said Dave Freysinger, managing partner of EverGen Power. “We are excited to bring our resources and expertise to drive best-in-class operations.”
Frontera, which began commercial operations in 1999, features two natural gas-fueled combined-cycle GE 7FA turbines.
SVP on Thursday said EverGen is a platform formed and backed by SVP Funds. It was created “to acquire and operate critical power infrastructure that supports the delivery of reliable and safe energy, addressing the increasing demand for power driven by electrification,” according to SVP.
—Darrell Proctor is a senior editor for POWER.
