Tortoise Capital to merge two closed-end funds, boost distributions

OVERLAND PARK, Kan. - Tortoise Capital Advisors announced Tuesday plans to merge two of its closed-end funds, with Tortoise Energy Infrastructure Corp. (NYSE: TYG) absorbing Tortoise Sustainable and Social Impact Term Fund (NYSE: TEAF). According to InvestingPro data, TEAF currently offers a substantial 9.15% dividend yield, making it an attractive income-generating vehicle.

The boards of both funds have approved the merger, which would create a combined entity with approximately $1.2 billion in assets under management as of May 31, 2025. TEAF, currently valued at $159.2 million in market capitalization, will contribute to TYG’s existing investment strategy focused on energy and power infrastructure. For detailed financial metrics and additional insights, investors can access more analysis through InvestingPro.

As part of the transaction, TYG’s board approved a 30% increase in distributions, contingent 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 of Tortoise Capital. "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."

TEAF continues exclusive negotiations for the sale of its remaining private renewables portfolio, with the transaction expected to close in 2025. Proceeds will be reinvested in listed energy infrastructure securities.

The merger is expected to be completed in the second half of 2025, subject to shareholder and regulatory approvals.

Tortoise Capital, based in Overland Park, Kansas, manages approximately $8.9 billion in assets as of May 31, 2025, according to the company’s press release statement. The firm specializes in investments across the energy and power infrastructure sectors. InvestingPro analysis indicates TEAF maintains a FAIR financial health score, with additional metrics and insights available to subscribers.

In other recent news, Tortoise Sustainable and Social Impact Term Fund has announced a change in its independent registered public accounting firm. The Fund’s Board of Directors has approved the engagement of Tait, Weller & Baker LLP to replace Ernst & Young LLP, which had served as the Fund’s accountant for the fiscal year ending November 30, 2024. The reports from Ernst & Young LLP for the fiscal years ending November 30, 2024, and November 30, 2023, contained no adverse opinions or disclaimers. There were also no disagreements or reportable events between the Fund and Ernst & Young LLP during these fiscal years or up to April 3, 2025. Following the Board’s decision, the Fund formally notified Ernst & Young LLP of its dismissal on April 8, 2025, and Ernst & Young LLP confirmed their agreement with the Fund’s statements regarding their dismissal. Prior to the engagement, the Fund had not consulted Tait, Weller & Baker LLP on any accounting principles or transactions. This transition is part of the Fund’s ongoing focus on sustainable and social impact investments. The information is based on the latest filing with the Securities and Exchange Commission.

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