Strategic Value Partners Expands Portfolio with Red Oak Power Acquisition

Strategic Value Partners, LLC (SVP), a renowned global alternative investment firm with around $22 billion in assets under management, recently disclosed its agreement to acquire Red Oak Power. This acquisition involves the efficient 831-megawatt natural gas-fired combined-cycle generation facility, strategically located in Sayreville, New Jersey.

Red Oak Power commenced its commercial operations in 2002 and has become a vital contributor to the energy landscape in New Jersey, supplying reliable and cost-effective power. The facility employs Siemens 501FD3 technology, making it a cornerstone in meeting the energy needs of the area and the broader PJM Interconnection region.

This investment forms part of a strategic partnership that SVP forged in 2024 with EverGen Power, a firm specialized in power generation acquisition and asset management. The collaboration aims to enhance SVP's footprint in North America's growing energy market by identifying lucrative power generation opportunities.

Ari Barz, co-CEO of EverGen, highlighted the significance of the acquisition, noting that Red Oak is located within a high-demand power area likely to experience growth fueled by advancements in AI-driven data centers and the overall electrification of the economy. The deployment of efficient technologies at Red Oak positions it favorably to continue delivering affordable and reliable energy to the Northeastern United States.

Dave Freysinger, co-CEO of EverGen, added that he and the team at EverGen are thrilled about this collaboration with SVP. He expressed optimism for optimizing the facility's operational and commercial performance as they expand their presence within the PJM market.

SVP's capability to make swift investment decisions was facilitated by their extensive expertise within the energy sector, enabling them to secure the acquisition under a compact timeline. David Geenberg, SVP's Head of North American Corporate Investments, referred to the longstanding collaborative relationship with EverGen's leadership, particularly in financing and managing other significant energy assets in recent years.

SVP has a robust investment track record across various real asset sectors, specifically in energy assets, with an impressive $2.4 billion invested since 2008. Their portfolio includes a controlling stake in GenOn Holdings, Inc., further underscoring their commitment to energy sector investments.

For EverGen, the team brings forth a cumulative 75 years of experience in power generation, aiming to efficiently manage and improve the performance of power assets across North America.

About Strategic Value Partners

Established by Victor Khosla in 2001, Strategic Value Partners is a global alternative investment firm focusing on special situations, private equity, and opportunistic credit transactions. With over 200 employees, including over 100 investment specialists, the firm commands significant assets and has exerted a transformative influence in the sectors it operates within.

About EverGen Power

Founded to meet the rising energy demands stemming from increased electrification, EverGen Power emphasizes operational excellence and collaborative practices among its experienced leadership team. The firm is committed to acquiring and operating essential power infrastructure to deliver safe and reliable energy solutions.

Through this new acquisition, SVP not only enhances its portfolio but further solidifies its position in the energy landscape, poised to take advantage of the growing demand for innovative and sustainable power solutions.