$2.3bn US infra fund manager completes MBO

Kansas-based energy infrastructure fund manager Tortoise Capital Advisors has been bought out by its senior management team in a deal backed by Mariner Holdings. Tortoise manages five closed-end infrastructure funds and has around $2.3bn under management.

Tortoise Capital Advisors, the manager of five energy infrastructure funds, has been bought out by members of its management team.

Kevin Birzer, Zachary Hamel, Ken Malvey, Terry Matlack and David Schulte – the five founding managing directors of the Leawood, Kansas-based firm – in conjunction with wealth and asset management group Mariner Holdings, have acquired all the ownership interests in Tortoise. Mariner is also headquartered in Leawood.

The managing directors will own a combined 35 percent stake in the new holding company, and will continue to work for the firm. Four further Tortoise employees will also purchase undisclosed equity stakes. Mariner Holdings will own the remaining majority interest in the company.

Tortoise had assets under management of around $2.3 billion at the end of August.

Tortoise manages
five funds

Tortoise, which was founded in 2002, manages five closed-end infrastructure funds which are listed on the New York Stock Exchange, including Tortoise Energy Infrastructure Corp, Tortoise Energy Capital Corp, Tortoise North American Energy Corp, Tortoise Capital Resources Corp and Tortoise Power and Energy Infrastructure Fund. It also manages a private fund and a number of private investment accounts.

Senior managing director Kevin Birzer said of the buyout in a statement: “We believe the footprint Tortoise has already established in the energy infrastructure sector combined with the new Mariner affiliation will allow us to accelerate the growth of our fund and private account business.”

Tortoise said the purpose of the deal is to enhance its product offerings and distribution capabilities as well as expanding its client base.

In July the Tortoise Power and Energy Infrastructure Fund raised $137 million through an IPO.