Tortoise Capital Announces Next Steps Following Completion of TEAF Strategic Review
Tortoise Capital has announced strategic actions following the completion of TEAF's strategic review. The fund is executing significant portfolio changes to enhance shareholder value:
- Engaged Lucid Capital Markets to sell private credit and social infrastructure assets (29% of portfolio, $55.9 million), expected to close around March 20th
- Partnered with Marathon Capital to divest majority of private renewables portfolio, with closing anticipated in Q2 2025
- Proceeds will be reinvested in listed energy infrastructure holdings, while sustainable infrastructure holdings remain unchanged
These changes aim to reduce the discount to net asset value and align with Tortoise Capital's core expertise in managing public energy securities portfolios.
Tortoise Capital ha annunciato azioni strategiche a seguito del completamento della revisione strategica di TEAF. Il fondo sta attuando cambiamenti significativi nel portafoglio per aumentare il valore per gli azionisti:
- Ha coinvolto Lucid Capital Markets per vendere crediti privati e asset di infrastrutture sociali (29% del portafoglio, 55,9 milioni di dollari), previsto di chiudere intorno al 20 marzo
- Ha collaborato con Marathon Capital per dismettere la maggior parte del portafoglio di energie rinnovabili private, con chiusura prevista nel secondo trimestre del 2025
- I proventi saranno reinvestiti in partecipazioni in infrastrutture energetiche quotate, mentre le partecipazioni in infrastrutture sostenibili rimarranno invariate
Questi cambiamenti mirano a ridurre lo sconto rispetto al valore netto degli attivi e ad allinearsi con l'expertise principale di Tortoise Capital nella gestione di portafogli di titoli energetici pubblici.
Tortoise Capital ha anunciado acciones estratégicas tras la finalización de la revisión estratégica de TEAF. El fondo está realizando cambios significativos en su cartera para aumentar el valor para los accionistas:
- Se ha asociado con Lucid Capital Markets para vender activos de crédito privado e infraestructura social (29% de la cartera, 55.9 millones de dólares), con cierre previsto alrededor del 20 de marzo
- Se ha asociado con Marathon Capital para desinvertir la mayor parte de la cartera de energías renovables privadas, con cierre anticipado en el segundo trimestre de 2025
- Los ingresos se reinvertirán en participaciones en infraestructura energética cotizada, mientras que las participaciones en infraestructura sostenible permanecerán sin cambios
Estos cambios tienen como objetivo reducir el descuento sobre el valor neto de los activos y alinearse con la experiencia principal de Tortoise Capital en la gestión de carteras de valores energéticos públicos.
토르토이스 캐피탈은 TEAF의 전략 검토 완료 후 전략적 조치를 발표했습니다. 이 펀드는 주주 가치를 높이기 위해 상당한 포트폴리오 변경을 실행하고 있습니다:
- 루시드 캐피탈 마켓와 협력하여 사모 신용 및 사회 인프라 자산(포트폴리오의 29%, 5590만 달러)을 매각할 예정이며, 3월 20일경에 마감될 것으로 예상됩니다.
- 마라톤 캐피탈과 협력하여 사모 재생 가능 에너지 포트폴리오의 대부분을 매각할 예정이며, 2025년 2분기에 마감될 것으로 예상됩니다.
- 수익금은 상장된 에너지 인프라 보유에 재투자될 예정이며, 지속 가능한 인프라 보유는 변동이 없습니다.
이러한 변화는 순자산 가치에 대한 할인율을 줄이고, 공개 에너지 증권 포트폴리오 관리를 위한 토르토이스 캐피탈의 핵심 전문성과 일치하는 것을 목표로 하고 있습니다.
Tortoise Capital a annoncé des actions stratégiques suite à l'achèvement de l'examen stratégique de TEAF. Le fonds met en œuvre des changements significatifs dans son portefeuille pour accroître la valeur pour les actionnaires :
- A engagé Lucid Capital Markets pour vendre des actifs de crédit privé et d'infrastructure sociale (29 % du portefeuille, 55,9 millions de dollars), la clôture étant prévue autour du 20 mars
- A établi un partenariat avec Marathon Capital pour céder la majorité de son portefeuille d'énergies renouvelables privées, la clôture étant anticipée au deuxième trimestre 2025
- Les produits seront réinvestis dans des participations en infrastructures énergétiques cotées, tandis que les participations en infrastructures durables resteront inchangées
Ces changements visent à réduire l'écart par rapport à la valeur nette des actifs et à s'aligner sur l'expertise principale de Tortoise Capital dans la gestion de portefeuilles de valeurs mobilières énergétiques publiques.
Tortoise Capital hat strategische Maßnahmen nach Abschluss der strategischen Überprüfung von TEAF angekündigt. Der Fonds führt bedeutende Änderungen im Portfolio durch, um den Aktionärswert zu steigern:
- Lucid Capital Markets wurde beauftragt, private Kredit- und soziale Infrastrukturvermögen (29 % des Portfolios, 55,9 Millionen Dollar) zu verkaufen, der Abschluss wird um den 20. März erwartet
- Eine Partnerschaft mit Marathon Capital wurde eingegangen, um den Großteil des Portfolios für private erneuerbare Energien abzustoßen, der Abschluss wird im zweiten Quartal 2025 erwartet
- Die Erlöse werden in börsennotierte Energieinfrastrukturinvestitionen reinvestiert, während die Bestände an nachhaltiger Infrastruktur unverändert bleiben
Diese Änderungen zielen darauf ab, den Abschlag auf den Nettoinventarwert zu reduzieren und mit der Kernkompetenz von Tortoise Capital in der Verwaltung von öffentlichen Energiewertpapierportfolios in Einklang zu stehen.
- Strategic divestment of private assets expected to generate $55.9 million in proceeds
- Portfolio restructuring aimed at reducing discount to net asset value
- Refocus on core competency in listed energy infrastructure
- Significant portfolio restructuring may create temporary uncertainty
- Reduction of portfolio diversification with exit from private credit and social infrastructure
Insights
The strategic restructuring announced by Tortoise Capital for the TEAF fund represents a significant portfolio realignment that will fundamentally alter the fund's composition and risk profile. The fund is divesting 29% of its portfolio through the sale of private credit and social infrastructure assets, with proceeds of
This strategic pivot represents a clear shift away from the fund's previous blend of private and public investments toward a greater focus on listed energy infrastructure assets. By moving capital from less liquid private holdings to publicly traded securities, TEAF is likely attempting to address its trading discount to net asset value (NAV) - a common challenge for closed-end funds invested in hard-to-value private assets.
The divestment strategy suggests management believes the current mix of assets isn't optimally valued by the market. By concentrating on listed energy infrastructure, where Tortoise has established expertise, the fund may achieve greater portfolio transparency and potentially narrower NAV discounts. However, this realignment also reduces diversification across alternative asset classes, which could increase concentration risk in the energy sector.
For shareholders, this restructuring could create near-term volatility but potentially offer long-term benefits if the discount to NAV narrows as management anticipates. The transaction pricing appears reasonable given current market conditions, though the full impact will depend on redeployment execution and market reception to the simplified investment structure.
As part of this review, TEAF engaged Lucid Capital Markets to facilitate the sale of its private credit, social infrastructure, assets. The fund is currently under contract to divest these holdings, as it was determined that divestment is in the best interest of shareholders. As of March 17, 2025, these private credit assets comprised
In addition, TEAF engaged Marathon Capital to facilitate the sale of its fixed renewable assets. The fund is currently under exclusivity for the sale of the majority of the private renewables portfolio, with the transaction expected to close in Q2 2025. The proceeds from the sales will be reinvested in TEAF’s listed energy infrastructure holdings. The sustainable infrastructure holdings will remain unchanged.
“We have taken a disciplined approach in this strategic review, focusing on actions that best serve our shareholders and provide the potential for a reduced discount to net asset value,” said Tom Florence, CEO of Tortoise Capital and Chairman of the closed end funds board. “These changes are in synch with Tortoise Capital’s history of managing portfolios of public energy securities and driving shareholder value.”
Tortoise Capital will continue to provide updates as these transactions progress and remains committed to maintaining transparency and disciplined capital management.
About Tortoise Capital
With approximately
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250317280606/en/
Craft & Capital
Chris Sullivan chris@craftandcapital.com
Rob Jesselson rob@craftandcapital.com
Source: Tortoise Capital Advisors, L.L.C.
FAQ
What percentage of TEAF's portfolio is being sold in the private credit asset sale?
When is TEAF's private credit asset sale expected to close?
What will TEAF do with the proceeds from the asset sales?
When is TEAF's private renewables portfolio sale expected to complete?
