Will Focus on Traditional Energy Investing Under Tortoise
Capital Brand, Sell Ecofin Advisors Business to Redwheel and
Private Credit Business to 503 Capital in Management Buyout
OVERLAND
PARK, Kan., July 11,
2024 /PRNewswire/ -- TortoiseEcofin, under the
leadership of new CEO Tom Florence,
today announced a strategic restructuring through which it will
sell its Ecofin Advisors Limited business and its private credit
business to focus on traditional energy and power infrastructure
investing. Going forward, TortoiseEcofin will operate as Tortoise
Capital.
Tortoise Capital Advisors, L.L.C. is an SEC-registered
investment manager with approximately $8
billion in assets under management and more than 20 years of
energy sector investment expertise. Based in Overland Park, Kansas, it offers separately
managed accounts, private funds, closed end funds and open-end
funds to institutions and individual investors.
As part of its strategic refocus, Tortoise Capital has entered
into an agreement to sell the assets managed by Ecofin Advisors
Limited, its UK based sustainable infrastructure and environmental
solutions affiliate with nearly $1.4
billion in assets under management, to Redwheel, a
specialist UK-based investment manager with more than $17.6 billion in assets under management.
Separately, Tortoise Capital has an agreement in place to sell
its private credit business to a newly formed entity, 503 Capital
Partners, that is made up of the investment and management team of
Tortoise Capital's private credit division. Following the
completion of the management buyout, 503 Capital will manage
approximately $500 million in assets
across private funds and separately managed accounts. The team will
continue to work with Tortoise Capital on the management of its
public funds.
Both transactions are expected to close in the third
quarter.
These strategic changes will allow Tortoise Capital to dedicate
its resources to providing innovative traditional energy and
infrastructure solutions to its clients and prospective
investors.
"The energy sector is transitioning rapidly as a result of new
technologies and in our view presents a compelling and timely
investment opportunity," Florence said. "We believe that companies
within the sector offer attractive risk-adjusted returns,
dependable cash flow, and play a critical role in national security
and economic growth."
Florence, with more than 38 years of industry experience, joined
the Tortoise board of directors in February
2024 and was named CEO in April, succeeding Kevin Birzer, who remains chairman. Florence
also continues to be a member of the board. Florence has led
multiple investment organizations, most recently serving as CEO of
361 Capital, which was acquired by Hamilton Lane in April 2021.
"Tom's background and experience have been invaluable as we
implement strategic changes necessary to take advantage of
Tortoise's history as a leading investment manager in the energy
sector and position the firm for growth. We are excited about our
future under Tom's leadership," Birzer said.
For the sale of assets managed by Ecofin Advisors Limited,
Moelis & Company LLC served as exclusive financial adviser to
Tortoise Capital and Ecofin. Morgan, Lewis & Bockius UK LLP
served as legal counsel to Redwheel. Bryan Cave Leighton Paisner
LLP served as legal counsel to Tortoise Capital and Ecofin.
About Tortoise Capital Advisors
Tortoise Capital Advisors, L.L.C. is an SEC-registered asset
manager that invests primarily in publicly traded companies in the
energy and power infrastructure sectors—from production to
transportation to distribution. Tortoise Capital's solid track
record of investment experience and research dates back more than
20 years. As an early investor in midstream energy, Tortoise
Capital believes it is well-positioned to be at the forefront of
the global energy evolution. For more information about Tortoise
Capital, visit www.tortoiseadvisors.com.
About 503 Capital Partners
503 Capital is an employee-owned private credit firm
specializing in lower middle-market loans, often lending on a
tax-exempt basis. 503 Capital was founded in 2024 as part of a
management buyout of Tortoise Capital's private credit platform.
For information about 503, visit www.503capitalpartners.com.
About Redwheel
Redwheel is a specialist, independent investment manager with an
active investment heritage built on a foundation of innovation,
original thought, and high conviction. The business was established
in 2000 with the ambition to create an environment in which
exceptional fund managers can operate with a high degree of
investment autonomy and maximise the benefits of their skills over
the long-term.
The seven investment teams specialize in Sustainable &
Thematic Equities, Active Engagement, Emerging Markets, Value &
Income and Convertible Bonds. A total of $17.6 billion (as of June
30, 2024) is managed across these strategies on behalf of
clients who include some of the foremost global institutions and
advisors.
With more than 170 people, including 59 dedicated investment
professionals, Redwheel has offices in London, Copenhagen, Miami, and Singapore. For additional
information, please visit www.redwheel.com
About Ecofin
Ecofin is an investment firm with an environmental focus,
principally investing in global companies focused on
electrification, decarbonisation, and sustainable infrastructure.
The firm manages global equity thematic strategies with the aim to
deliver strong risk-adjusted returns to clients, who include
leading institutions, family offices, foundations, and investment
advisors, while investing to help solve some of the planet's
biggest challenges.
Ecofin, headquartered in London, has employees based in both the UK and
North America. For additional
information, please visit ecofininvest.com.
Media Contacts:
Margaret Kirch Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281
margaret@newtonparkpr.com
rich@newtonparkpr.com
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SOURCE Tortoise Capital