Circulate Capital, a company that invests in circular economy businesses in fast-growing markets, has raised $220 million in the first round of its new fund, Circulate Capital Asia II. This is more than 70% of its total goal of $300 million and is already bigger than its previous fund, which raised $188 million.
The company will use this money to support and grow recycling businesses and circular supply chains across South and Southeast Asia. Its main focus will be on solving plastic waste, improving packaging, and working on recycling in industries like electronics and clothing.
The funding round included support from existing corporate investors like Coca-Cola Company, Danone, Dow, and Procter & Gamble.
It also received backing from development finance institutions such as the International Finance Corporation and British International Investment.
New investors joined as well, including the Emerging Markets Climate Action Fund, public institutions from Europe and Australia, and several family offices.
“Circulate Capital is the first and only private markets manager to bet exclusively on circular supply chains across South and Southeast Asia. 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,” Circulate Capital Founder and CEO Rob Kaplan said.
Circulate Capital has made more investments in circular economy businesses in Asia than any other fund manager. Its strategy focuses on meeting growing local demand while also improving operations to match the global standards required by big international companies.
Since 2020, the company has helped add nearly 900,000 tonnes of yearly waste collection and recycling capacity across its projects in Asia.
This strategy is also bringing good financial results. The company recently fully exited Recykal, a digital waste management platform in India. It also partially exited from Lucro, a recycler of difficult plastic packaging, and Srichakra Polyplast, India’s first food-grade plastic recycling company.
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