MutualFundWire.com: Florence Rolls Out a $9B-AUM AM's 5th ETP

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Friday, August 8, 2025

Florence Rolls Out a $9B-AUM AM's 5th ETP

The team at a $9.1-billion-AUM* asset manager near Kansas City are expanding their ETP lineup to five funds in total.

On Tuesday (August 5), Tom Florence, CEO of Tortoise Capital Advisors, L.L.C. [profile], and Mark Marifian, head of product, unveiled the launch of the Tortoise AI Infrastructure ETF (TCAI on the NYSE). Overland Park, Kansas-based Tortoise serves as investment advisor to the new ETF.

TCAI's inception date was Monday (August 4), and the fund comes with an expense ratio of 65 basis points. TCAI now has about $506,000 in AUM.

Tortoise's investment committee serves as TCAI's PM team. That committee, all managing directors and senior portfolio managers, includes:

Brian Kessens;

James Mick;

Matt Sallee; and

Rob Thummel.

Other providers have also launched several thematic funds that focus on investing in the artificial intelligence space (not to be confused with AI-powered funds). Yet, while many of the previously launched AI funds are index funds, Tortoise's TCAI is an active fund. More specifically, TCAI's strategy is aimed at investing in three AI infrastructure areas: energy, data centers, and technology.

Sallee, head of investments at Tortoise, calls AI "the fourth industrial revolution."

"AI doesn't run on code alone. It runs on infrastructure," Sallee states. "Behind every AI breakthrough lies a foundation of essential infrastructure spanning energy systems, advanced technology platforms, data centers and more capable of storing and processing massive amounts of electricity, data, and information."

Thummel calls electricity "the new oil" and describes TCAI as "a comprehensive solution that taps into this AI theme."

"Rather than focusing on software platforms or headline grabbing tech names already trading at elevated valuations, the fund invests in the companies that power the technology, all of which have strong cash flows, essential service models, and strategic relevance in the AI race," Thummel states.

Marifian puts the launch of TCAI in the context of Tortoise's "long-standing focus on the energy and infrastructure sectors." He calls TCAi "the first ETF of its kind, focusing on the infrastructure supporting AI."

"Whether used as a core holding or a high active share satellite position, it's designed with the goal of outperforming the S&P 500 while serving multiple roles, such as a thematic growth allocation, real assets diversifier, or a source of inflation hedged equity exposure," Marifian states.

Florence calls AI infrastructure "one of the most transformative and defining themes of this generation."

"This isn't a short-term trend, it's a foundational shift that will require massive investment and could generate long-term, dependable returns to investors," Florence states.

TCAI is a non-diversified, actively managed series of Tortoise Capital Series Trust. The new ETF's other service providers includ:

Morrison & Foerster LLP as counsel to the independent trustees;

PINE Advisors LLC as provider of a chief compliance officer and a principal financial officer;

ACA Foreside's Quasar Distributors as distributor;

Tait, Weller & Baker LLP as independent accounting firm;

U.S. Bank, N.A. as custodian;

U.S. Bank Global Fund Services as administrator, accounting agent, dividend disbursing agent, and transfer agent; and

Vedder Price P.C , counsel to the fund.