Midstream Energy Fund expands holdings

Kansas City-based Tortoise Midstream Energy Fund announced it has reached an agreement to acquire the midstream energy asset management business of Advisory Research Inc. from its parent company Piper Jaffray Companies.

The Advisory Research midstream energy infrastructure team has nearly $3 billion in assets under management in both balanced and equity strategies. The transaction brings two experienced midstream energy pioneers with strong track records.

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.”

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).