Strategic Value Partners acquires majority stake in Frontera plant

Strategic Value Partners has converted a distressed-debt position into a controlling stake in a Texas power plant, deepening its bet on U.S. generation assets.

SVP funds have acquired a majority of the equity interests in New Frontera Holdings, LLC, the entity that owns the 530-megawatt Frontera natural gas-fired combined-cycle facility in Mission, Texas.

The firm originally invested, later swapped part of that debt into equity, and has since increased its holding to a majority position.

The Frontera plant, operational since 1999, consists of two GE 7FA combined-cycle turbines and supplies dispatchable power to the Lower Rio Grande Valley, a high-growth pocket of the ERCOT market.

Electricity demand in the area has climbed rapidly alongside population gains and industrial electrification, making flexible gas-fired capacity a premium asset for grid reliability.

SVP is acquiring the asset through its partnership with EverGen Power, a power generation acquisition and asset management firm formed in 2024 to target North American energy infrastructure.

EverGen’s leadership team, which has worked together for nearly a decade and holds 75 combined years of power-sector experience, will manage Frontera’s day-to-day operations.

David Geenberg, SVP’s head of North American corporate investments, pointed to the firm’s restructuring capabilities as key to unlocking the control opportunity, while EverGen managing partner Dave Freysinger emphasized the plant’s role as a critical generation re.