Home News Tortoise Launches $50 Million Interval Fund

Tortoise Launches $50 Million Interval Fund

Tortoise Investments has launched the Tortoise Tax-Advantaged Social Infrastructure Fund, a $50 million closed-end interval fund that will provide capital for social infrastructure projects related to 501(c)(3) organizations, nonprofits and other entities.

Tortoise Investments has launched the Tortoise Tax-Advantaged Social Infrastructure Fund (TSIFX), a $50 million closed-end interval fund that plans to focus at least 80 percent of its assets on social infrastructure projects related to 501(c)(3) organizations, nonprofits and other entities. The offering was declared effective by the Securities and Exchange Commission this week.

The social infrastructure sector includes assets and services that accommodate essential services related to education, healthcare, housing, human service providers and social services, the company noted.

“The capital supply demand imbalance that resulted from the financial crisis provides our team an opportunity to potentially benefit 501(c)(3) entities with the capital needed to fund social infrastructure projects and investors with tax-advantaged income and diversification in their portfolios,” said Garey Fuqua, senior portfolio manager.

The fund may also invest up to 20 percent of its total assets in securities guaranteed by the U.S. government, equity investments in other companies, including exchange-traded funds, and securities in sectors other than social infrastructure.

The company expects that its directly originated securities in the social infrastructure sector will consist primarily of unrated securities related to education, healthcare, industrial infrastructure/project finance and housing.

The fund currently offers one share class: Class I shares, which are initially priced at $10.00 each and have no sales load. The company has applied for exemptive relief by the SEC, and if granted, may issue multiple share classes in the future and impose asset-based distribution fees and early-withdrawal fees. The minimum initial investment is $2,500 per account.

Tortoise Credit Strategies LLC, a registered investment adviser specializing in fixed income investing, will serve as the fund’s investment adviser and will receive an annual management fee equal to 1.25 percent of the fund’s managed assets. Quasar Distributors LLC is the principal underwriter and distributor of the shares.

Liquidity will be provided to shareholders through the fund’s quarterly repurchase offerings.

Tortoise Investments focuses on assets and services that serve essential needs in society and can also serve essential client needs, such as diversification and income. Tortoise has experience in traditional energy investing across the entire energy value chain, sustainable infrastructure including wind, solar and water infrastructure, credit investing, direct lending to social infrastructure projects and index construction. Through its family of registered investment advisers, the company had $20.2 billion assets under advisement as of December 31, 2017.

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