News & Resources | 2024

Circulate Capital Invests in Cirklo by eB Capital to Scale PET Recycling in Brazil

September 23, 2024

Circulate Capital and eB Capital will combine their expertise to develop new plastic circularity projects in the Brazilian production chain. These projects will promote environmental sustainability and aim to divert more than 1.3 million tons of plastic from disposal to recycling. 

São Paulo, Brazil, September 2024 – eB Capital, an alternative investment manager, today announced an investment by Circulate Capital, a leading circular economy investment management firm, into Cirklo to advance Brazil’s plastic recycling sector. 

This step marks a significant leap in the thesis created by eB in 2022 when the firm announced the acquisition of two prominent plastic recycling companies, Green PCR and Global PET, consolidating this market and creating the country’s largest circular economy platform supplying PET resin. With this partnership with Circulate Capital, the operations of these two companies have been integrated under the name Cirklo, becoming the largest independent recycler in the country, with a total capacity to recycle more than 4 billion PET bottles annually. 

Cirklo (under the legal name Economia Circular Participações S.A) will leverage the partnership to mobilize resources for expanding its operations in the Southeast and Northeast regions of Brazil, where it already operates two plants in the states of São Paulo and Paraíba, while paving the way to foster sustainability and encourage circularity in the Brazilian production chain. A key advantage aspect of the material recycled by Cirklo is that it can be used in the production of PET packaging, including for food products. 

This partnership marks Circulate Capital’s second investment in Latin America, following its July 2024 investment in Polyrec S.A.S., a leading Colombian recycling company. Part of the funding for Cirklo’s expansion will come from Circulate Capital’s Latin America and Caribbean US$70 million initiative, which was launched in 2023 with the support of IDB Lab and major corporations, including Chevron Phillips Chemical, Danone, Dow, Mondelēz International, and Unilever, to prevent plastic pollution in the region. 

“We are excited about this important partnership with Circulate Capital, a significant player in the circular economy that will greatly enhance our connection with the global market, as well as bring extensive experience and recycling benchmarks from their portfolio companies. Our focus is to seize growth opportunities in the recycled plastics market in Brazil and pave the way for sustainable development and innovation in the sector,” said Luciana Antonini Ribeiro, co-founder of eB Capital and leader of the task force on financial issues and climate-related infrastructure and projects for B20 (the Brazilian business arm of the G20). 

“We are proud to officially enter Brazil — such an exciting and important market for the region — with this investment in Cirklo, a solid company with exceptional growth potential. This investment marks our deep commitment to Latin America, aiming to promote significant environmental and socio-economic advancements through the circular economy,” said Rob Kaplan, founder and CEO of Circulate Capital. “In addition to capital, we help our portfolio companies scale through mentorship, technical support, and connections with our network of multinational corporate partners, ensuring their long-term success.” 

Climate Agenda 

Brazil’s presidency of the G20 and the hosting of COP30 in 2025 in Belém, Pará, provide opportunities for the country to lead the international climate agenda and transition to a low-carbon economy. 

Brazil is investing in its internationally recognized environmental credentials, highlighting its continental dimensions, biodiversity, and energy matrix. The country has made significant strides in plastic recycling in recent years, according to a study commissioned by the Plastic Chain Incentive Plan (PICPlast) from the consultancy MaxiQuim (both Brazilian organizations). In 2022, the post-consumer mechanical recycling rate reached 25.6%, representing the highest annual growth in recycled resin production since the study began in 2018. This rate is the highest among Latin American countries and aligns with regions where recycling activity is already mature, such as Europe. 

According to the study, post-consumer recycled plastic production reached a record 1.1 million tons in 2022, a 9% increase compared to 2021. Since 2018, volume growth has been 46%, with a 42.6% increase in revenue per ton produced during the same period. 

About eB Capital – eB Capital is a Brazilian alternative investment firm recognized for turning Brazil’s structural challenges into significant business opportunities. The firm’s DNA combines investment expertise and operational excellence, a crucial competitive advantage for creating value and generating high returns. With deep knowledge of the country, eB Capital pioneered Climate Private Equity investments by acquiring Green PCR and Global PET, forming the country’s largest PET bottle recycling platform. Other investments include Alloha Fibra, the largest independent fiber optic provider in the country; Loja do Mecânico, the largest e-commerce for tools and machinery in Latin America; and Blue Health, a leading medical equipment rental company, among others. The firm recently announced a strategic partnership with JHSF Capital to launch a real estate fund. https://www.ebcapital.com.br/ 

Nothing contained in this Press Release is intended to project, predict, guarantee, or forecast the future performance of any investment. This Press Release is for information purposes only. It is not investment advice or an offer to buy or sell any securities or to invest in any funds or other investment vehicles managed by Circulate Capital. 

Circulate Capital invests in Polyrec S.A.S., Colombia – its first investment in Latin America

July 24, 2024

Bogotá, Colombia, 24 July 2024 — Circulate Capital, a leading circular economy investment management firm in high-growth markets, announced today its first investment in Latin America: a strategic capital infusion in Polyrec S.A.S, a leading Colombian recycling company. The investment will strengthen the company’s operations and help to double its processing capacity for flexible plastic recycling. 

“We are proud to support Polyrec’s expansion as they scale their operations to transform Colombia’s recycling supply chain. With this investment, we aim to prevent 100.000 tons of plastic from leaking into the oceans and capitalize on the growing market opportunity for recycled plastics worldwide,” said Rob Kaplan, Circulate Capital’s Founder and Chief Executive Officer.

Colombia is the fourth-largest producer of plastic waste in Latin America, generating  1.7 million tons per year, and a critical focus country for supporting the scale of sustainable environmental practices. The challenge is particularly acute with flexible plastics—such as bags and wraps— which are one of the fastest-growing and most problematic categories of waste globally. Hindered by the complexities of recycling flexibles and inconsistent collection efforts, the recycling rates for these materials remain critically low. 

Operational since 2018 and strategically located in Barranquilla, Colombia, with access to the Caribbean region, Polyrec has extensive experience in the flexible plastic market, recycling Low-Density Polyethylene (LDPE), Polypropylene (PP), and Biaxially Oriented Polypropylene (BOPP), proving to be a leader in Colombia in its category and setting industry standards by effectively reintegrating recycled materials back into the supply chain.  

Julian Coymat, CEO of Polyrec S.A.S, said, “The collaboration with Circulate Capital marks a transformative milestone for our team as we enter into an exciting new phase of growth. Leveraging their proven track record in scaling companies like ours worldwide, we’re poised to become a leading force in sustainable plastic packaging, not just within Colombia but across the broader region. This strategic alliance underscores a fusion of expertise, talent, and a shared mission to reduce the footprint of plastic packaging“

The urgency of addressing plastic pollution is underscored by the staggering amount of plastic waste that accumulates in the world’s oceans, with current estimates reaching 150 million tons of plastic waste. Each year, an additional 11 million tons are added, emphasizing the need for immediate and effective solutions for plastic waste management.

Colombia boasts one of the most advanced plastic regulations in the region, as evidenced by its implementation of Extended Producer Responsibility  (RESOLUTION 1407 OF 2018). This legislation mandates that producers utilize at least 10% recycled content in packaging, a figure expected to increase to 30% by 2030, underscoring the need for better infrastructure to meet the growing demand for recycled plastics. The country has also been a leading voice in the ongoing international negotiations on a global plastic treaty, advocating for effective and ambitious solutions to combat plastic pollution. 

“This first investment in Latin America is just the beginning of our deeper engagement with the region, aiming to drive significant environmental and socio-economic advancements through the circular economy. By investing in Polyrec S.A.S., we are not only reaffirming our commitment to sustainable futures but also marking the start of many strategic investments to come,” added Rob Kaplan. “In addition to providing capital, we extend mentorship, technical expertise, as well as connections to our network of corporate partners, ensuring our portfolio companies thrive over the long term” Kaplan, added.

Backed by IDB Lab, the innovation laboratory of the Inter-American Development Bank, Builders Vision, private investors and multinational companies such as Chevron Phillips Chemical, Danone, Dow, Mondelez International, and Unilever, this investment by Circulate Capital is the first as part of a broader nearly US$70 million commitment to help scale solutions and support the top recycling companies across the Latin America and Caribbean (LAC) region.

Circulate Capital’s 2023 Annual Progress Report

June 10, 2024

We are excited to share our 2023 Annual Progress Report, which highlights Circulate Capital’s significant achievements in advancing circular solutions and tackling plastic pollution.

Explore the full report to learn more about our financial, environmental, and social progress and gain insights into our investment strategies and portfolio companies.