Tortoise Capital Unites TYG and NTG: A New Era in Energy Infrastructure

Tortoise Capital Advisors, L.L.C., a prominent fund manager focused on traditional energy and power infrastructure investing, recently announced a strategic merger between Tortoise Energy Infrastructure Corp. (NYSE: TYG) and Tortoise Midstream Energy Fund, Inc. (NYSE: NTG). This move aligns with Tortoise Capital's commitment to enhancing shareholder value and operational efficiency, as well as its dedication to the global energy evolution.

The merger of TYG and NTG, with TYG as the surviving company, resulted in a combined total assets under management (AUM) of $1.1 billion. This increased scale allows for greater diversification, enabling the merged fund to invest in a broader range of energy infrastructure companies. Additionally, the larger asset base provides better negotiating power with issuers, potentially leading to more favorable terms and access to exclusive investment opportunities. Furthermore, the merged fund's enhanced market presence may attract more investors, further boosting its assets under management and solidifying its position in the energy infrastructure sector.



In addition to the merger, Tortoise Capital announced a change in the distribution policy for TYG. The fund will now pay distributions monthly instead of quarterly, with a 40% increase in the distribution amount. This change benefits shareholders by providing more frequent income and a higher total return. Monthly distributions allow shareholders to reinvest or spend their income more flexibly, while a 40% increase in distribution amount enhances the fund's yield, making it more attractive to income-oriented investors. This change aligns with Tortoise Capital's commitment to delivering value and flexibility to shareholders.



The merger of TYG and NTG also aligns with Tortoise Capital's strategic focus on traditional energy and power infrastructure investing. As of Aug. 31, 2024, the combined assets of the two funds, including leverage, totaled $914.4 million. This merger allows Tortoise Capital to consolidate its energy infrastructure investments, creating a more robust fund with increased assets under management. By merging TYG and NTG, Tortoise Capital solidifies its position in the energy infrastructure sector, enabling it to better capitalize on growing energy demand and efforts to reduce global CO2 emissions.

In conclusion, the merger of TYG and NTG, along with the change in TYG's distribution policy, represents a significant step forward for Tortoise Capital and its shareholders. This strategic move enhances the merged fund's investment capabilities, market influence, and attractiveness to investors, while aligning with Tortoise Capital's commitment to traditional energy and power infrastructure investing. As the global energy landscape continues to evolve, Tortoise Capital remains well-positioned to capitalize on emerging opportunities and deliver value to its shareholders.