Strategic Value Partners expands U.S. energy portfolio with stake in Birdsboro Power

Strategic Value Partners, LLC, a global alternative investment firm managing approximately $22 billion in assets, has announced the acquisition of a significant stake in Birdsboro Power, a 485-megawatt natural gas-fired combined-cycle power generation facility based in Berks County, Pennsylvania. The facility, which began operations in 2019, plays a key role in supplying reliable, efficient, and low-cost electricity to Pennsylvania and the wider PJM Interconnection region—one of the largest power grids in North America.

Why Is Strategic Value Partners Investing in Birdsboro Power?

The move marks a strategic expansion of Strategic Value Partners’ presence in the U.S. power generation sector. This latest acquisition falls under a broader investment partnership formed in 2024 between Strategic Value Partners and EverGen Power, an experienced energy asset manager. The Birdsboro Power acquisition is designed to enhance operational efficiency and support the transition toward cleaner baseload generation assets.

What Is the Strategic Significance of the Birdsboro Power Plant?

The Birdsboro Power facility operates using GE‘s advanced 7HA.02 gas turbine technology, positioning it among the most efficient natural gas combined-cycle facilities in the region. With 485 megawatts of generation capacity, the plant serves as a baseload asset, meaning it supplies consistent, around-the-clock electricity. Its operational reliability makes it an essential contributor to Pennsylvania’s power grid and a stabilising force within the PJM Interconnection market.

Industry analysts note that efficient gas-fired generation assets like Birdsboro Power have gained renewed interest as utilities and grid operators look to balance renewable energy intermittency with dependable thermal generation. As forecasted demand for electricity rises across the eastern United States, driven by electrification trends and industrial growth, assets like Birdsboro are well-positioned to deliver capacity without the volatility associated with renewables or aging coal infrastructure.

How Does This Acquisition Align with SVP’s Energy Investment Strategy?

Strategic Value Partners’ acquisition of a stake in Birdsboro Power aligns with its long-standing strategy of targeting undervalued or under-optimised real assets within sectors undergoing transformation. Since 2001, Strategic Value Partners has invested approximately $3 billion into energy and power-related assets, including its 2018 acquisition of GenOn Holdings, Inc., a major independent power producer with a diversified generation fleet.

David Geenberg, who leads North American Corporate Investments at Strategic Value Partners, indicated that the deal was executed bilaterally with a strong emphasis on execution certainty. He also stressed the role of SVP’s ongoing collaboration with EverGen Power, citing shared success in underwriting, acquiring, and operating GenOn assets over recent years.

EverGen Power, led by industry veterans Ari Barz and Dave Freysinger, brings over 75 years of combined experience in power plant management, investment, and optimisation. Their leadership and operational insights are expected to be instrumental in boosting Birdsboro Power’s technical and commercial performance.

What Role Does EverGen Power Play in This Partnership?

Formed in 2024 as a power generation investment and asset management platform, EverGen Power has quickly emerged as a partner of choice for institutional investors seeking scale and returns in the North American energy sector. Its collaboration with Strategic Value Partners is focused on acquiring modern gas-fired plants, energy storage facilities, and transition-era thermal assets that support grid reliability during the shift to cleaner energy sources.

Commenting on the Birdsboro Power transaction, EverGen’s leadership emphasised the plant’s “environmentally advantaged” position, citing its newer turbine technology and relatively lower emissions footprint compared to older fossil fuel facilities. The partnership plans to implement operational refinements that could unlock greater efficiencies and commercial flexibility, particularly as regulatory and market dynamics evolve in the PJM region.

What Does This Mean for the Broader U.S. Power Generation Market?

The acquisition of Birdsboro Power underscores a broader institutional shift toward infrastructure-grade energy assets that can generate stable, inflation-linked returns. As the U.S. grapples with aging power infrastructure, increasing demand, and decarbonisation mandates, assets like Birdsboro Power represent a middle ground between traditional thermal generation and emerging renewable capacity.

Investments in natural gas combined-cycle technology, such as the GE 7HA.02 turbine used at Birdsboro Power, are expected to remain critical over the next decade, especially as grid operators require firm capacity to supplement intermittent sources like wind and solar. Analysts suggest that similar facilities could see increased valuation and refinancing activity as investor demand for resilient, income-generating energy infrastructure accelerates.

What Is the Institutional Sentiment Around Strategic Value Partners?

Strategic Value Partners is widely regarded among institutional investors for its disciplined approach to special situations and opportunistic credit. Its investments span across private equity, real assets, and corporate restructurings. The firm currently manages over $22 billion in assets globally and maintains key offices in Greenwich, Connecticut, and London, with a footprint extending into Tokyo.

Investor sentiment remains broadly positive toward Strategic Value Partners’ energy strategy, particularly its focus on acquiring essential infrastructure with upside potential. The firm’s stake in Birdsboro Power is expected to strengthen its position as a long-term operator and developer of flexible, grid-aligned power solutions.

While SVP’s funds are privately held and do not trade publicly, the firm’s growing presence in the North American power generation market has drawn attention from fixed-income and infrastructure fund managers tracking institutional flows into energy transition assets.

Birdsboro Power and U.S. Power Investments

The long-term outlook for Birdsboro Power appears strong, especially as demand growth and energy policy trends converge to prioritise grid reliability, efficiency, and environmental compliance. As carbon-intensive legacy assets continue to retire, facilities like Birdsboro are anticipated to play a critical bridging role.

For Strategic Value Partners and EverGen Power, the immediate focus will likely be on optimising asset-level operations, exploring commercial market opportunities within the PJM capacity market, and possibly expanding into complementary assets such as battery storage or hydrogen-compatible turbines in the future.

This acquisition not only consolidates Strategic Value Partners’ footprint in the U.S. energy sector but also reflects a growing investor appetite for high-efficiency natural gas power assets that align with a pragmatic energy transition strategy.