Ecofin Fund Seeks to Liquidate, Calls for Shareholder Approval

Ecofin Tax-Exempt Private Credit Fund is seeking shareholder approval for an orderly liquidation to maximize investment value, aiming to return capital by 2027.

August 13, 2024

Ecofin Tax-Exempt Private Credit Fund Inc., an interval fund focused on long-term municipal bonds, is seeking shareholder approval for an orderly liquidation, as recommended by its investment adviser, Tortoise Capital Advisors LLC. The fund's board of directors has endorsed the proposal, believing liquidation is in the best interest of shareholders and will maximize the value of the fund’s investments.

If approved, the liquidation would replace the fund’s quarterly repurchase offers, allowing for a more strategic recovery of the portfolio while providing equal liquidity access to all shareholders. Ecofin aims to return capital by 2027, though the final liquidation date may vary based on market conditions. The fund also plans to make periodic distributions during the liquidation process.

First launched in March of 2018, the Ecofin interval fund reported $111.7 million in assets as of June 30, 2024. Shareholders are asked to vote "yes" by September 27 on two interconnected proposals: one to liquidate and dissolve the fund, and the other to revoke the quarterly repurchase offers.

Earlier this year, Gary Henson succeeded P. Bradley Adams as CEO of the fund following Adams' retirement. Henson also serves as director and chairman of the fund’s board and as senior managing director of Ecofin Advisors LLC. The Ecofin fund focuses on generating tax-exempt income through privately originated, tax-free loans secured by infrastructure, particularly in education, senior living, and waste transition sectors.