Singapore – Circulate Capital, the Singapore-based investment management firm that funds high-growth opportunities at the intersection of climate technology, plastic recycling and the circular economy, today announced a third closing for Circulate Capital Ocean Fund IB (CCOF IB), bringing the fund’s total commitments to $53 million.
CCOF IB’s latest closing brings Circulate Capital’s total assets under management to US$165 million, making it the largest impact investment firm dedicated to fighting plastic pollution and promoting environmental sustainability. circular economy in South and Southeast Asia. Alongside the company’s US$112 million Circulate Capital Ocean Fund (CCOF I), the fund invests in companies across the plastic recycling and waste management value chains, as well as startups focused on early-stage disruptive innovation and technology aligned with Circulate Capital Disrupt, the company’s climate technology strategy, such as new delivery models, advanced recycling technologies and new alternatives to single-use plastic.
CCOF IB support includes US$10 million from IFCa member of the World Bank Group and the world’s largest private sector-focused development institution in emerging markets, and $5.6 million from Proparco, a subsidiary of the French Development Agency (AFD) dedicated to financing the private sector. IFC investment includes $5 million equity commitment Finland-IFC Blended Climate Change Finance Program.
“We are delighted to support Circulate Capital in its efforts to tackle the plastic waste crisis in Asia,” said William Sonneborn, Senior Director of Disruptive Technologies and Funds at IFC. “The fund will help fight plastic pollution and climate change through critical investments in recycling, waste management and innovations in alternative materials and advanced recycling technologies. It will also increase access to much-needed capital for small and medium-sized businesses that provide these important solutions. »
“Waste management and sustainable plastic recycling have proven to be top priorities to invest in to reduce greenhouse gas emissions,” said Diane Jegam, South Asia Regional Director of Proparco. “Proparco is proud to partner with Circulate Capital, whose track record and expertise in reducing plastic waste leakage into the environment prepares them to maximize the impact of this fund.
CCOF IB is backed by a number of renowned international private investors including Align Impact, Builders Vision, Benjamin Duncan Group, DF Impact Capital, Eden Impact, Huang Chen Foundation, Jebsen & Jessen, Minderoo Foundation, Rumah Group, North- East Family Office, SK2 Fund, Twynam Investments, The Woodcock Foundation and Neil Yeoh of OnePointFive. In April 2022, Circulate Capital announced a commitment that is expected to be made later this year by the European Investment Bank (EIB), which will invest up to $20 million in CCOF IB.
The company also recently achieved key milestones across its portfolio, including:
- A follow-on co-investment by CCOF IB and CCOF I in current portfolio company Asia Recycling Supply Chain Lucro Plastecycle Private Limited (Lucro), an Indian manufacturer specializing in the recycling of hard-to-manage flexible plastic packaging that is rapidly evolving into a material science company.
- circthe circular fashion company whose breakthrough technology takes clothes back to the raw materials from which they were made, has raised over US$30 million in Series B funding backed by some of the world’s largest apparel companies and venture capital firms including Inditex, founded by Bill Gates Breakthrough Energy Ventures (BEV) and Circulate Capital.
“The race to unlock the investment potential of the circular economy is heating up,” said Rob Kaplan, CEO and Founder, Circulate Capital. “With institutional investors like IFC and Proparco joining global corporations, foundations and family offices, and several of our portfolio companies reaching important milestones, it is clear that now is the right time to invest in the circular economy. Taken together, these developments show that our blended finance approach has successfully created new market opportunities that are generating significant impact and competitive financial returns, bringing us closer to our ambition of unlocking $1 billion to prevent 150 million tonnes of plastic pollution of the oceans by 2030.”