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CEF Specialist

Tortoise MLP Fund Is the Latest Closed-End MLP Fund

Another month, another master limited partnership closed-end fund.

Mentioned: , ,

Closed-end funds welcomed their latest addition Tuesday, with the initial public offering of Tortoise MLP (NTG). The fund raised net proceeds of approximately $1.01 billion, not including the underwriters' option to purchase $150 million more within 45 days. Already, it's the third-largest CEF IPO since July 2007.

The new issuance market for CEFs has been heating up in 2010, after two lackluster years. So far, we have seen 10 new CEFs, with aggregate net proceeds of $4.2 billion. However, it will be difficult to outpace the torrid IPO market of 2007, which successfully brought 41 deals to market and raised $26.5 billion in net proceeds (three of those funds have already been shuttered).

Mike Taggart does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.