Tortoise Capital Advisors, L.L.C. (Tortoise Capital), a fund manager focused on energy investing, today announced plans to merge two of its closed-end funds.
The board of directors of each of Tortoise Sustainable and Social Impact Term Fund (NYSE: TEAF) and Tortoise Energy Infrastructure Corp. (NYSE: TYG) have approved the merger of TEAF into TYG, with TYG as the surviving company. This strategic merger is designed to enhance scale, improve efficiency, and strengthen Tortoise Capital’s leadership in energy infrastructure investing – while better serving shareholders.
As of May 31, 2025, the combined total assets under management of TYG and TEAF are approximately $1.2 billion. TYG will retain its existing investment strategy and objective, continuing as Tortoise Capital’s sole closed-end fund for investors seeking long-term exposure to essential energy assets.
TYG provides diversified exposure to energy and power infrastructure and seeks a high level of total return with an emphasis on current distributions. TYG’s investment strategy is designed to capitalize on the ‘age of electricity,’ driven by data center growth, electrification, and grid modernization as well as unprecedented natural gas and LNG demand as a globally scalable, lower-emission fuel anchoring U.S energy exports. The board of TYG also approved a 30% increase in distributions for TYG, subject to and upon completion of the merger.
“This merger provides a significant benefit to both TYG and TEAF investors,” said Tom Florence, Chief Executive Officer and Chairman. “With TYG as our flagship closed-end fund solution, we are better positioned to deliver long-term value to shareholders through enhanced scale, operational efficiency, and a focused portfolio of high-quality energy and power infrastructure opportunities.”
As previously announced, TEAF continues exclusive negotiations for the sale of its remaining private renewables portfolio, with the transaction expected to close in 2025. Proceeds from the sale will be reinvested in listed energy infrastructure securities.
The merger is expected to be completed in the second half of 2025, subject to requisite fund shareholder and regulatory approvals. Tortoise Capital will continue to provide updates as the transaction progresses and remains committed to transparency, disciplined capital management, and delivering long-term value to shareholders.
