New private credit firm spun out of Tortoise Capital
A new direct lending firm has been founded as part of a management buyout of Tortoise Capital’s private credit platform.
503 Capital comprises the investment and management team of Tortoise Capital’s private credit division.
Led by managing partners Gary Henson, David Sifford and Kate Moore, the new firm will specialise in lower middle-market loans.
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Following the completion of the acquisition of Tortoise’s private credit assets, which is expected to occur in the third quarter, 503 Capital will manage around $500m (£388m) 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, the firms said.
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“Keeping our investment team intact is essential to our client experience,” said Sifford, 503 Capital’s chief investment officer. “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.”
Tortoise Capital is a New York-headquartered asset manager that invests primarily in publicly traded companies in the energy and power infrastructure sectors.
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