Tortoise Capital Plans Merger of Two Closed-End Funds and Strategic Review of Ecofin Sustainable and Social Impact Term Fund
Tortoise Capital Advisors has announced plans to merge two of its closed-end funds, Tortoise Midstream Energy Fund (NYSE: NTG) and Tortoise Energy Infrastructure Corp. (NYSE: TYG), with TYG as the surviving entity. The combined assets of the funds totaled $914.4 million as of Aug. 31, 2024. Upon completion, TYG's board approved a 40% increase in distributions, to be paid monthly instead of quarterly.
Additionally, Tortoise Capital will conduct a strategic review of its Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), which had total assets of $229.0 million as of Aug. 31, 2024. The company aims to address TEAF's disappointing performance and discount to NAV. These actions are part of Tortoise Capital's broader restructuring efforts, including the recent sale of its Ecofin Advisors and private credit businesses, to focus on traditional energy and power infrastructure investing.
Tortoise Capital Advisors ha annunciato piani per unire due dei suoi fondi chiusi, Tortoise Midstream Energy Fund (NYSE: NTG) e Tortoise Energy Infrastructure Corp. (NYSE: TYG), con TYG come entità risultante. Gli attivi combinati dei fondi ammontano a 914,4 milioni di dollari al 31 agosto 2024. Al termine, il consiglio di TYG ha approvato un aumento del 40% nelle distribuzioni, che saranno pagate mensilmente anziché trimestralmente.
Inoltre, Tortoise Capital effettuerà una revisione strategica del suo Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), che ha totalizzato attivi di 229,0 milioni di dollari al 31 agosto 2024. L'azienda mira a affrontare le deludenti performance di TEAF e il suo sconto rispetto al NAV. Queste azioni fanno parte degli sforzi di ristrutturazione più ampi di Tortoise Capital, inclusa la recente vendita delle sue attività di Ecofin Advisors e di credito privato, per concentrarsi sugli investimenti in energia tradizionale e infrastrutture energetiche.
Tortoise Capital Advisors ha anunciado planes para fusionar dos de sus fondos cerrados, Tortoise Midstream Energy Fund (NYSE: NTG) y Tortoise Energy Infrastructure Corp. (NYSE: TYG), siendo TYG la entidad sobreviviente. Los activos combinados de los fondos totalizaron 914,4 millones de dólares a partir del 31 de agosto de 2024. Al finalizar, la junta de TYG aprobó un aumento del 40% en las distribuciones, que se pagarán mensualmente en lugar de trimestralmente.
Además, Tortoise Capital llevará a cabo una revisión estratégica de su Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), que tenía activos totales de 229,0 millones de dólares a partir del 31 de agosto de 2024. La compañía tiene como objetivo abordar el decepcionante rendimiento de TEAF y su descuento en relación al NAV. Estas acciones son parte de los esfuerzos de reestructuración más amplios de Tortoise Capital, incluidos la reciente venta de sus negocios de Ecofin Advisors y crédito privado, para centrarse en inversiones en energía tradicional e infraestructura energética.
토르토이스 캐피털 어드바이저스는 두 개의 폐쇄형 펀드인 토르토이스 미드스트림 에너지 펀드 (NYSE: NTG)와 토르토이스 에너지 인프라 주식회사 (NYSE: TYG)를 통합할 계획을 발표했으며, TYG가 생존 주체로 남습니다. 두 펀드의 총 자산은 2024년 8월 31일 기준으로 9억 1,440만 달러에 달합니다. 완료되면, TYG의 이사회는 40% 배당금 증가를 승인했으며, 배당금은 분기별이 아닌 매달 지급될 예정입니다.
또한, 토르토이스 캐피털은 에코핀 지속 가능 및 사회적 영향 기한 펀드 (NYSE: TEAF)에 대한 전략적 검토를 진행할 예정이며, TEAF의 총 자산은 2024년 8월 31일 기준으로 2억 2,900만 달러에 달했습니다. 회사는 TEAF의 실망스러운 성과와 NAV에 대한 할인 문제를 다루는 것을 목표로 하고 있습니다. 이러한 조치는 토르토이스 캐피털의 더 넓은 구조 조정 노력의 일환으로, 최근 에코핀 어드바이저스 및 사모 신용 사업의 매각을 포함하여 전통적인 에너지 및 전력 인프라 투자에 집중할 계획입니다.
Tortoise Capital Advisors a annoncé des plans pour fusionner deux de ses fonds fermés, Tortoise Midstream Energy Fund (NYSE: NTG) et Tortoise Energy Infrastructure Corp. (NYSE: TYG), TYG étant l'entité survivante. Les actifs combinés des fonds s'élevaient à 914,4 millions de dollars au 31 août 2024. Une fois la fusion terminée, le conseil d'administration de TYG a approuvé une augmentation de 40 % des distributions, qui seront versées mensuellement au lieu de trimestriellement.
De plus, Tortoise Capital procédera à une révision stratégique de son Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), qui avait des actifs totaux de 229,0 millions de dollars au 31 août 2024. L'entreprise vise à traiter le rendement décevant de TEAF et son décote par rapport à la NAV. Ces actions font partie des efforts de restructuration plus larges de Tortoise Capital, y compris la récente vente de ses activités Ecofin Advisors et de crédit privé, afin de se concentrer sur les investissements dans l'énergie traditionnelle et l'infrastructure énergétique.
Tortoise Capital Advisors hat Pläne angekündigt, zwei seiner geschlossenen Fonds, Tortoise Midstream Energy Fund (NYSE: NTG) und Tortoise Energy Infrastructure Corp. (NYSE: TYG), zusammenzuführen, wobei TYG als die überlebende Einheit fungiert. Die kombinierten Vermögenswerte der Fonds beliefen sich zum 31. August 2024 auf 914,4 Millionen Dollar. Nach Abschluss genehmigte der Vorstand von TYG eine 40%ige Erhöhung der Ausschüttungen, die monatlich statt vierteljährlich ausgezahlt werden.
Darüber hinaus wird Tortoise Capital eine strategische Überprüfung seines Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF) durchführen, der zum 31. August 2024 über Gesamvermögen von 229,0 Millionen Dollar verfügte. Das Unternehmen zielt darauf ab, die enttäuschende Performance von TEAF und den Discount zum NAV zu adressieren. Diese Maßnahmen sind Teil der umfassenderen Umstrukturierungsbemühungen von Tortoise Capital, einschließlich des kürzlichen Verkaufs seiner Ecofin Advisors und Privatkreditgeschäfte, um sich auf traditionelle Energie- und Energieinfrastrukturinvestitionen zu konzentrieren.
- Merger of NTG and TYG will create a larger fund with combined assets of $914.4 million
- 40% increase in distributions for TYG shareholders post-merger
- Strategic review of TEAF aims to address performance issues and NAV discount
- Restructuring efforts focus on core competencies in energy and power infrastructure investing
- TEAF's performance has been disappointing, trading at a discount to NAV
- Potential integration challenges and costs associated with the NTG and TYG merger
- Divestment of Ecofin Advisors and private credit business may impact revenue diversification
Insights
This merger of NTG into TYG is a strategic move to create a more robust and efficient investment vehicle. The combined
However, the strategic review of TEAF raises concerns. The fund's underperformance and persistent discount to NAV suggest structural issues that may be challenging to address. The planned evaluation of blending private and public investments in a closed-end fund structure indicates a potential shift in strategy, which could impact TEAF's risk-return profile.
Tortoise Capital's broader restructuring, including the sale of Ecofin Advisors and its private credit business, signals a significant shift towards traditional energy and power infrastructure. This focused approach could lead to improved expertise but also increases sector concentration risk.
The merger and restructuring efforts by Tortoise Capital reflect broader trends in the asset management industry. There's a growing push for fund consolidation to achieve scale and efficiency, particularly in niche sectors like energy infrastructure. The shift from quarterly to monthly distributions aligns with investor preferences for more frequent income streams.
The strategic review of TEAF is noteworthy, as it highlights the challenges of blending private and public investments within a closed-end fund structure. This hybrid approach, while potentially offering diversification benefits, can lead to valuation discrepancies and liquidity mismatches that may contribute to persistent NAV discounts.
Tortoise's pivot to focus on traditional energy and power infrastructure is intriguing, given the global push towards renewable energy. This strategy could position them well to capitalize on the energy transition, particularly in areas where traditional infrastructure plays a important role in supporting renewable integration.
The board of directors of each of Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) and Tortoise Energy Infrastructure Corp. (NYSE: TYG) have approved the merger of NTG into TYG, with TYG as the surviving company. TYG invests in energy infrastructure companies and is positioned to benefit from growing energy demand and accelerated efforts to reduce global CO2 emissions from energy consumption. The combined assets of the two funds, including leverage, totaled
In addition, Tortoise Capital intends to conduct a strategic review of the investment strategy of its closed-end fund Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), including the impact of blending private and public investments in a closed-end fund. TEAF provides investors access to a combination of public and private investments in essential assets. TEAF had total assets, including leverage, of
"As part of our product restructuring, we are evaluating our entire fund lineup and are making changes that are in the best interest of fund shareholders," said Tom Florence, CEO of Tortoise Capital Advisors. "We have been disappointed with TEAF's performance and its discount to NAV and aim to correct the issue."
Tortoise Capital intends to complete the merger of NTG into TYG during the fourth quarter of 2024, subject to requisite fund shareholder and regulatory approvals.
Last month, Tortoise Capital announced plans to merge three of its closed-end funds into a newly formed actively managed exchange-traded fund (ETF), Tortoise Power and Energy Infrastructure ETF. In July the company announced a strategic restructuring including the sale of its Ecofin Advisors Limited business and its private credit business to focus on traditional energy and power infrastructure investing. The sale of the private credit business to 503 Capital Partners, LLC was completed on July 31, 2024 and the sale of Ecofin Advisors Limited is expected to close on Sept. 30, 2024.
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 (SEC). 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.
IMPORTANT INFORMATION
In connection with the proposed merger discussed in this press release, NTG and TYG expect to file with the SEC solicitation materials in the form of a joint proxy statement/prospectus that will be included in a registration statement on Form N-14. After the registration statement is filed with the SEC, it may be amended or withdrawn, and the joint proxy statement/prospectus will not be distributed to fund shareholders unless and until the registration statement is declared effective by the SEC. Investors are urged to read the joint proxy statement/prospectus and any other relevant documents when they become available because they will contain important information about the proposed merger. Once filed, copies of the joint proxy statement/prospectus and other materials will be available free of charge on the SEC's website at www.sec.gov.
This press release is for informational purposes only and is not a solicitation of a proxy from any fund shareholder and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933. However, Tortoise Capital Advisors, NTG, TYG and certain of their respective directors, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from fund shareholders in connection with the proposed merger discussed in this press release. Information about the directors and officers of NTG and TYG may be found in their annual reports previously filed with the SEC.
Tortoise Capital Advisors, L.L.C. is the investment adviser to Tortoise Energy Infrastructure Corp. (TYG), Tortoise Midstream Energy Fund, Inc. (NTG), and Ecofin Sustainable and Social Impact Term Fund (TEAF) with Ecofin Advisors Limited as TEAF's sub-adviser.
The annual and semi-annual reports of NTG, TYG and TEAF and other regulatory filings with the SEC are accessible at www.sec.gov and at https://cef.tortoiseadvisors.com/. The information contained on the funds' website is not a part of this press release.
Media Contacts:
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SOURCE Tortoise Capital
FAQ
What is the planned merger between Tortoise Midstream Energy Fund (NTG) and Tortoise Energy Infrastructure Corp (TYG)?
How will the merger affect distributions for TYG shareholders?
What strategic review is planned for the Ecofin Sustainable and Social Impact Term Fund (TEAF)?
What other restructuring efforts has Tortoise Capital Advisors undertaken recently?
