After first entering the capital structure as a lender, Strategic Value Partners has amassed a controlling stake in New Frontera Holdings, a 530-megawatt natural gas-fired power plant in Mission, Texas.

The firm disclosed the majority equity acquisition on May 7, marking the culmination of a multi-year relationship that began with a first-lien term loan prior to the company’s 2021 restructuring.

Following that reorganization, SVP converted a portion of its debt into equity and has gradually increased its ownership.

The plant, which began commercial operations in 1999, features two GE 7FA combined-cycle turbines and serves the Lower Rio Grande Valley within the ERCOT market.

As one of the fastest-growing regions in Texas, it relies on Frontera as a.

The asset’s 530 megawatts of capacity provide critical supply during peak periods, supporting the state’s economic expansion.

SVP is acquiring the controlling stake as part of its strategic partnership with EverGen Power, a power generation acquisition and asset management firm that SVP backed in 2024.

EverGen will take over operations of Frontera, bringing a management team with roughly 75 combined years of sector experience.

Dave Freysinger, managing partner of EverGen, described the facility as a critical dispatchable re.

David Geenberg, head of North American corporate investments at SVP, pointed to the firm’s restructuring capabilities and power sector knowledge as pivotal in building the controlling position.

Strategic Value Partners, founded by Victor Khosla in 2001, manages approximately $22 billion in assets and has invested more than $57 billion since inception.

The firm operates from offices in Greenwich, New York, London, Tokyo, and Dubai.

Its mandate spans special situations, private equity, and opportunistic credit.