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, Kansas – July 11, 2024 – 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 approximately $1.4 billion in assets under management, to Redwheel, a specialist UK-based investment manager with $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.
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