Circulate Capital, an environmental impact investor that aims to advance circular economy for plastics in high-growth markets, today announced the final close of its Circulate Capital Ocean Fund I-B (CCOF I-B), bringing the fund’s total AUM to US$73 million and the firm’s total AUM to US$255 million.
Circulate Capital also announced a US$7 million commitment from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor.
According to a press statement, this marks the firm’s fourth investment from a DFI, including the International Finance Corporation (IFC), the European Investment Bank (EIB), and Proparco, a subsidiary of the French AFD Group, with total commitments from DFIs now reaching US$32 million. These commitments are expected to help catalyse institutional investment into enterprises that develop solutions to combat plastic waste in Asia.
CCOF I-B invests in two complementary strategies aimed at tackling the plastic pollution crisis and fighting climate change:
Circulate Capital Disrupt (CCD)
Described as climate-tech investments in breakthrough innovations that reduce the need for virgin plastics and limit greenhouse gas emissions across the sustainable fashion, biotech and AI, and smart materials sectors.
Circulate Capital Recycling Supply Chains
Described growth investments that transform recycling and waste management supply chains in South and Southeast Asia (SSEA), scaling the highest-potential solutions and replicating their success.
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“We’re proud to welcome BII to our prestigious list of institutional investors so we can scale our investments more quickly to address the global plastic pollution crisis and advance the circular economy,” said Rob Kaplan, CEO and Founder of Circulate Capital.
“To close our climate tech fund with the support of prominent partners including global corporations, family offices, foundations, and now four of the biggest DFIs in the world signifies that the sector is ripe for the capital it needs to achieve circularity and mitigate the negative effects of climate change.”
Kaplan said, “Crossing the US$250 million AUM threshold is an exciting measure of our success, but even more a testament to the growing appetite amongst institutional and impact investors for investments in high growth companies that are delivering both deep impact and meaningful financial returns. Thus far, our climate tech strategy has invested in four impressive enterprises at the forefront of climate tech and circular innovation, and we will continue to identify and add innovators in this space to our portfolio as well as for our flagship strategy of investing in recycling infrastructure in the SSEA region.”
Circulate Capital additionally announced that CCOF I-B has qualified for the 2X Challenge, recognising its significant commitment to women’s economic empowerment. The Fund’s nomination was sponsored by BII.
With a presence in more than 10 countries, Circulate Capital partners with global brands and financial institutions to transform supply chains at scale by delivering economic, social, and environmental value.
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Launched in 2018 by supply chain experts and leading corporations including PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC, and Mondelēz International, the firm is scaling solutions across the recycling and innovative materials value chains.
Circulate Capital was founded in and focused initially on South and Southeast Asia, but the firm today also targets “untapped opportunities in high-growth markets to spark further development in the emerging circular economy.”
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