Tortoise has launched the Tortoise Tax-Advantaged Social Infrastructure Fund (TSIFX), a closed-end interval fund that offers investors access to the firm’s direct lending strategy that was previously available only to qualified purchasers through a private fund.
The fund will provide capital for social infrastructure projects related to 501(c)(3) organisations, non-profits and other entities authorised to issue private activity and tax-exempt bonds focused on education, healthcare, housing, industrial infrastructure, human service providers and social services, where there is currently a capital dislocation. The fund seeks to generate attractive total return with an emphasis on tax-advantaged income.
“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,” says Garey Fuqua, senior portfolio manager and team lead for Tortoise’s social infrastructure and direct lending strategies. “We believe our team’s extensive experience sourcing and structuring direct origination deals and our differentiated credit philosophy and approach gives us a competitive advantage in a rather opaque market.”
“Tortoise is very thoughtful about structuring products to best meet the needs of our investors,” says Jeremy Goff, a managing director focusing on the firm’s direct lending platform. “Utilising an interval fund structure for this strategy allows investors to capitalise on the potential illiquidity premium of direct origination private deals, while also offering quarterly liquidity.”
Liquidity will be provided to shareholders through the fund’s quarterly repurchase offerings.