TortoiseEcofin Restructures, Divests Private Credit Arm
TortoiseEcofin, based in Overland Park, KS, is rebranding as Tortoise Capital Advisors and selling its private credit business to 503 Capital Partners and its UK division Ecofin Advisors to Redwheel as part of a strategic restructuring following more than two decades as an energy investor and early participant in the energy transition.
The rebranded Tortoise Capital Advisors, with $8 billion in assets, offers separately managed accounts, private funds, closed- and open-end funds to institutions and individual investors.
Tortoise Capital will concentrate on innovative traditional energy and infrastructure solutions under the direction of Tom Florence, who joined the board of directors in February and was appointed CEO in April. Florence has 38 years of industry experience, most recently serving as CEO of 361 Capital, which was bought by Hamilton Lane in April 2021.
At the same time, 503 Capital Partners, a new entity formed by the investment and management teams of the former TortoiseEcofin’s private credit division, agreed to acquire the firm’s private credit platform.
Following the acquisition, 503 Capital will remain in Overland Park, managing about $500 million in assets across private funds and separately managed accounts. Terms of the transaction, which is expected to close in the third quarter, were not disclosed. The firm will be led by managing partners Gary Henson, David Sifford, and Kate Moore. Employees will own 100% of the company’s equity interest.
The 503 Capital team will continue to work with Tortoise Capital on the management of its public funds, with no changes to investment methodologies or day-to-day portfolio management.
Redwheel, a London-based investment manager with over $17.6 billion in assets under management, is buying Ecofin Advisors for an undisclosed sum. Ecofin Advisors, a U.K. investor focused on sustainable infrastructure and environmental solutions, manages around $1.4 billion in assets.
