Tortoise Capital and 503 Capital Partners have entered into a definitive agreement for 503 Capital to acquire Tortoise’s private credit platform. 503 Capital is a newly-formed entity comprising the investment and management team of Tortoise’s private credit division. Terms of the transaction were not disclosed.
503 Capital will be led by managing partners Gary Henson, David Sifford and Kate Moore. As part of the transaction, employees of 503 Capital will own 100% of the equity interest of the entity, aligning interests with the firm’s clients.
“We are thrilled to announce the formation of 503 Capital,” Henson said. “There is no better way to align client outcomes than to have our employees as owners of the business.”
“Keeping our investment team intact is essential to our client experience,” Sifford, chief investment officer of 503 Capital, said. “We have become a recognized lender in the education, healthcare and waste transition sectors, which has helped us obtain strong risk-adjusted returns for our clients.”
Following the completion of the acquisition, which is expected to occur in the third quarter, Overland Park, Kansas-based 503 Capital will manage approximately $500 million in assets across private funds and separately managed accounts.
The team at 503 Capital will continue to work with Tortoise Capital on the management of its public funds, and the investment processes and day-to-day portfolio management remain unchanged.
