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OVERLAND PARK, Kan., March 17, 2025--(BUSINESS WIRE)--Tortoise Capital Advisors, L.L.C. (Tortoise Capital), a fund manager focused on energy investing, today announced a series of strategic actions following the completion of the previously disclosed strategic review of the Tortoise Sustainable and Social Impact Term Fund (NYSE: TEAF). This initial phase focused on evaluating the impact of blending private and public investments in a closed-end fund structure. With this phase now complete, the focus is on implementing changes to the portfolio. These actions are designed to enhance shareholder value and maintain alignment with Tortoise Capital’s core investment expertise.
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 29% of TEAF’s portfolio. The sale of the private credit assets is expected to close on or about March 20th generating proceeds of $55.9 million.
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 $9.6 billion in assets under management as of Feb. 28, 2025, Tortoise Capital’s 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 that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. is an SEC-registered investment adviser who manages funds that invest primarily in publicly traded companies in the energy and power infrastructure sectors—from production to transportation to distribution. For more information about Tortoise Capital, visit www.TortoiseAdvisors.com.