Tortoise Capital Enters Strategic Restructuring, to Sell Off Assets

Posted July 11, 2024

Overland Park-based Tortoise Capital Advisors, LLC announced it has entered into two separate agreements to sell off its subsidiaries to restructure the company.

Tortoise Capital has agreed to sell the assets managed by Ecofin Advisors Limited, a UK-based sustainable infrastructure and environmental solutions affiliate with nearly $1.4 billion in assets under management. The deal was made with Redwheel, a UK-based investment manager with more than $17.6 billion in assets under management.

Under the terms of the second agreement, Tortoise Capital will sell its private credit business to, 503 Capital Partners, which is made up of the investment and management team of Tortoise Capital’s private credit division. Upon completion of the deal, 503 Capital will manage approximately $500 million in assets across private funds and separately managed accounts, according to a release. 503 will also continue to work with Tortoise Capital managing its public funds.

Both transactions are expected to close in the third quarter.

Going forward, TortoiseEcofin will operate as Tortoise Capital. The decision to make these two separate agreements was made to restructure the company, focusing more on traditional energy and power infrastructure investing.

“The energy sector is transitioning rapidly as a result of new technologies and in our view presents a compelling and timely investment opportunity,” Tortoise CEO Tom Florence said in a release. “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.”

Moelis & Company LLC served as the exclusive financial adviser to Tortoise Capital and Ecofin. Bryan Cave Leighton Paisner LLP served as legal counsel to Tortoise Capital and Ecofin. Morgan, Lewis & Bockius UK LLP served as legal counsel to Redwheel.