Circulate Capital Achieves Third Close for Circulate Capital Ocean Fund I-B, Led by the International Finance Corporation (IFC) and Proparco
The Firm also announces major transaction milestones, validating Circulate Capital’s strategy to advance the circular economy and fight plastic waste
Circulate Capital is an emerging market investment management firm that finances innovations, companies, and infrastructure that scale solutions to the plastic waste and climate change crises.
Waste is an international crisis
There are an estimated 150 million tonnes of plastic in the ocean today and this number grows by 11 million metric tons per year, drastically damaging habitats and leaving marine life at risk.
Research has shown that a comprehensive circular economy approach is needed to tackle the global plastic waste crisis and that, with the largest volumes of mismanaged plastics over the next 20 years expected in Asia, there is a tremendous opportunity to invest in the recycling supply chain to get circularity as a default across the region, as well as in innovative materials, technologies and business models to reduce the flow of waste.
To unlock the capital needed to build circular supply chains and sustainable waste and recycling systems in South and Southeast Asia - where there is the most potential for impact, we want to prove that investing in this sector is scalable and can generate competitive returns.
Identify, incubate and invest
At Circulate Capital, we identify, incubate, and invest in opportunities designed to intercept ocean plastic at the source by collecting, sorting, processing, and recycling waste in South and Southeast Asian countries. As a result, waste is diverted from the environment into the recycling value chain, furthering the circular economy.
Circulate Capital established the world’s first investment fund dedicated to preventing ocean plastic: Circulate Capital Ocean Fund (CCOF). CCOF is a new, blended financing mechanism, bringing together the public and private sectors to invest for maximum impact. It was created in partnership with leading corporations, PepsiCo, the first investor, Coca-Cola, Danone, Chanel, Unilever, Dow, Procter & Gamble, Chevron Phillips Chemical, Mondelez International and backed by DFC and USAID.
Circulate Capital in the news
Catalyzing investment solutions to stop ocean plastic
On October 29, 2018 at Our Ocean in Bali, we proudly launched Circulate Capital and committed to funding start-ups and SMEs developing waste management and recycling solutions that prevent ocean plastic and advance the circular economy in South and Southeast Asia.
Circulate Capital evolved from the Closed Loop Ocean project, following the commitment made by Closed Loop Partners, Ocean Conservancy, and a number of corporate partners at the Our Ocean Summit in Malta in October 2017 to create financing vehicles that prevent ocean plastic.
In December 2019, we announced the first close of the US$106M Circulate Capital Ocean Fund (CCOF) in Singapore, backed by PepsiCo, Procter & Gamble, Dow, Danone, CHANEL, Unilever, The Coca-Cola Company, and Chevron Phillips Chemical, to provide investment capital to scale local innovative companies or projects that divert waste from the environment and into the recycling value chain in South and Southeast Asian countries.
In 2020, the Fund invested US$40M to seven companies in India and Indonesia, with more to come in 2021.
As preventing future ocean plastic requires a comprehensive approach that goes beyond providing investment capital to entrepreneurs, Circulate Capital supported the establishment of The Circulate Initiative, a mission-aligned nonprofit organization whose goal is to provide the public, entrepreneurs, policymakers, and investors with the knowledge and skills they need to create and sustainably fund and operate plastic waste-reducing, inclusive, circular economies in emerging markets.
We thank our investors for empowering us to leverage their patient capital and technical know-how to build on-ramps for institutional capital at scale. Together, we will create, reimagine and realign the entire ecosystem that generates and remediates ocean plastic pollution, developing a circular economy whereby we can take used plastics and turn them into a new, reusable resource for future materials.
“Our goal is to mobilize catalytic capital to foster greater circularity across the entire plastic value chain, from innovative materials to advanced recycling technologies. We aim to prove that investing in the sector can generate competitive returns, while moving to fight plastic waste pollution and climate change.”
- Rob Kaplan, Circulate Capital Founder & CEO