Singapore-based Circulate Capital has raised $220 million in the first close of its Circulate Capital Asia Fund II, which will support circular supply chain initiatives and recycling infrastructure in south and southeast Asia.
The investment management firm said that the raise represents more than 70% of its overall target of $300 million and already surpasses its first fund, which raised $188 million.
‘A diverse mix’
It noted that a ‘diverse mix’ of global investors helped to drive its latest raise, with multinational corporates such as The Coca-Cola Company, Danone, Dow, and Procter & Gamble reaffirming their commitment, alongside development finance institutions such as British International Investment, Proparco, and the International Finance Corporation (IFC).
Elsewhere, new institutional partners included the Emerging Markets Climate Action Fund (EMCAF), co-managed by Allianz Global Investors and the European Investment Bank, along with a cohort of public and private investors.
Fund II will focus on executing high-growth investments in markets such as India, Indonesia, Vietnam, Thailand, the Philippines, and Malaysia, with investment priorities including scaling mature plastic recycling streams; developing infrastructure for harder-to-recycle materials; driving innovation in alternative paper-based packaging solutions; and recovering critical and rare earth minerals in electronic waste.
‘Track record
“Circulate Capital is the first and only private markets manager to bet exclusively on circular supply chains across South and Southeast Asia,” commented Rob Kaplan, founder and CEO of Circulate Capital.
“Our track record of successful exits demonstrates that the circular economy is no longer just a subset of ESG or sustainability. It is a sophisticated asset class that can deliver liquidity to private equity investors. With Fund II, we are ready to scale and capture the massive growth potential inherent in these high-velocity economies, to build businesses that deliver financial and impact returns for our investors.”
Investors also welcomed the Fund II initiative, with Jean-Yves Krummenacher, global chief procurement officer at Danone, hailing the opportunity to “develop solutions that create lasting value for people, industry, and the planet”, and Keith Cleason, president, packaging and specialty plastics, Dow, welcoming Circulate Capital’s “tangible impact in areas key to progressing circularity across the ecosystem”.
Looking ahead, Fund II aims to finance nearly two million tonnes of recycling capacity over the next decade. These investments are expected to prevent 30 million tonnes of unmanaged waste and reduce more than 50 million tonnes of CO2 emissions. Read more here.
