Texas Genco LLC ("Texas Genco") is one of the largest wholesale power generation companies in the United States, operating a diverse fleet of generating assets in Texas. In July 2004, Texas Genco, a newly formed entity owned in equal parts by H&F, The Blackstone Group, Kohlberg Kravis & Roberts, and Texas Pacific Group, reached a definitive agreement to acquire Texas Genco Holdings, Inc., CenterPoint Energy's wholesale electric power generation company, for approximately $3.7 billion through a two-step transaction.

In December 2004, Texas Genco acquired the the coal, lignite and gas-fired generation plants of Texas Genco Holdings, Inc. for $2.8 billion in cash. In 2005, following receipt of approval by the Nuclear Regulatory Commission, Texas Genco acquired Texas Genco Holdings, Inc., whose principal asset was Texas Genco's remaining ownership interest in the South Texas Project nuclear generating facility, for $700 million. In total, Texas Genco owns more than 14,000 MW of net generating capacity.

HFCP IV sold its investment in Texas Genco in November 2006.