Houlihan Lokey Advises New Frontera Holdings

Houlihan Lokey is pleased to announce the successful sale of a majority stake of New Frontera Holdings, LLC (Frontera), the owner of a 530 MW natural gas-fired power plant located in South Texas (the facility). The transaction closed on May 5, 2026.

Frontera operates a 530 MW natural gas-fired combined-cycle generation facility located in Mission, Texas, near the southern border. The facility sold power into Mexico from October 2016 until June 2023, at which point it reconnected to the ERCOT market. Today, the facility sells 100% of its output into the ERCOT South Zone on a merchant basis.

In June 2025, Houlihan Lokey advised Frontera on refinancing the company’s 1L term loan and bridge loan facilities, including all accrued and unpaid interest, to establish a regular-way capital structure. Houlihan Lokey then launched a sale process in February 2026, ultimately leading to funds managed by Strategic Value Partners, LLC (SVP) acquiring a majority of the equity interests in Frontera. SVP funds acquired Frontera as part of its strategic partnership with EverGen Power (EverGen), a power generation acquisition and asset management firm established in 2024 to support SVP with power generation investments across North America.

SVP is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit, and financing opportunities. The firm uses a combination of sourcing, financial, and operational expertise to unlock value in its portfolio companies. Today, SVP manages approximately $22 billion in assets under management and, since inception, has invested more than $57 billion of capital.

Houlihan Lokey served as the exclusive sellside advisor to Frontera. This transaction highlights Houlihan Lokey’s continued success advising the largest participants in the power industry.

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