LEAWOOD, Kan.--(BUSINESS WIRE)--Tortoise today announced it has reached a definitive agreement to acquire the midstream energy asset management business of Advisory Research Inc. from parent company Piper Jaffray Companies (NYSE: PJC). The Advisory Research midstream energy infrastructure team has approximately $3 billion in assets under management in both balanced and equity strategies, through mutual funds, sub-advised closed-end funds and separate accounts. The transaction brings together two highly experienced and tenured midstream energy pioneers with strong track records and complementary investment philosophies anchored in fundamental research.
The Advisory Research midstream energy infrastructure team, including Senior Portfolio Managers Jim Cunnane, Jr. and Quinn Kiley, will join Tortoise. The existing team will maintain oversight of Advisory Research’s current midstream energy infrastructure business and client relationships.
“We have a shared history with Jim and Quinn as early investors in midstream energy,” said Tortoise Chief Executive Officer, Kevin Birzer. “The Advisory Research team is well-known and highly regarded as forward-thinking midstream energy asset managers. We anticipate that our similar leadership styles and culture will ensure a seamless transition.”
“We are thrilled to bring our combined experience and shared commitment to serving clients to the Tortoise organization,” said Advisory Research’s Senior Portfolio Manager, Jim Cunnane. “We see opportunities to continue to grow with the support of Tortoise’s deep and experienced distribution team.”
The transaction is expected to close during the second half of 2019, subject to customary regulatory and closing conditions, including fund board/shareholder approval. Advisory Research currently manages separate accounts, mutual funds and also serves as sub-adviser to the Fiduciary/Claymore Energy Infrastructure Fund (NYSE: FMO), the Nuveen Energy MLP Total Return Fund (NYSE: JMF) and the Nuveen All Cap Energy MLP Opportunities Fund (NYSE: JMLP).
Morgan Stanley & Co. LLC served as financial adviser to Tortoise.
Tortoise invests in essential assets – those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. For additional information, please visit tortoiseadvisors.com.