TortoiseEcofin is undergoing a strategic restructuring that will see it complete a management buyout of its private credit business and separately sell its U.K.-based sustainable infrastructure and environmental solutions unit to Redwheel.
Under new CEO Tom Florence, the business will now focus on traditional energy and power infrastructure investing, and will operate as Tortoise Capital.
Financial terms were not disclosed.
Following a management buyout, the private credit business will operate as a newly formed entity, 503 Capital Partners, with about $500 million in assets across private funds and separately managed accounts. It focuses on lower-middle-market loans.
Separately, Ecofin Advisors will be sold to U.K.-based investment manager Redwheel, adding almost $1.4 billion in sustainable infrastructure and environmental solutions AUM to Redwheel’s more than $17.6 billion in assets.
Both deals are expected to close in the third quarter of the year.
“The Ecofin team is one of the longest standing specialists focused on sustainable infrastructure and related transition strategies,” Redwheel CEO Tord Stallvik said in a joint news release. “Their expertise is complementary to our existing thematic sustainability capabilities and is aligned with our overall focus on fundamental, long-term specialist investment strategies.”
