Circularity as a volatility hedge

That is where circular systems become increasingly important.

At Circulate Capital, our focus has always been practical: building the businesses and supply chains needed to recover and recirculate materials at scale. Over time, we’ve seen these systems evolve from fragmented and informal networks into increasingly sophisticated industrial platforms.

The progress across our portfolio reflects that evolution.

Since 2021, Circulate Capital-backed companies have helped prevent more than 950,000 tonnes of plastic pollution, avoid 1.9 million tonnes of greenhouse gas emissions, and build over one million tonnes per year of recycling capacity across high-growth markets. In 2025 alone, our portfolio circulated more than 335,000 tonnes of plastic.

More importantly, we are seeing stronger commercial fundamentals across the sector.

Many of the companies we invested in several years ago are scaling rapidly, improving operational performance, expanding production capacity, and integrating more deeply into global supply chains. Demand for recycled materials continues to accelerate as global brands are looking to secure a supply of high-quality recycled feedstock and reduce exposure to virgin-material volatility.

What has become increasingly clear is that impact and financial performance are intertwined. They actually reinforce each other. The more efficiently a company can collect, process, and sell recycled material, the stronger the business becomes and the greater the environmental impact it creates.

We are also seeing growing validation from investors and capital markets.

We recently completed a full exit of Recykal and partial exits of Lucro and Srichakra, demonstrating continued liquidity in the sector. At the same time, the first close of Asia Fund II in March 2026 at over US$220 million reflects growing investor confidence in circular supply chains as an investable asset class.

None of this progress happens independently. Accelerating circularity requires coordination across entrepreneurs, manufacturers, recyclers, waste workers, policymakers, and investors. One of the most encouraging developments over the past five years has been seeing how quickly these ecosystems can mature when long-term capital and strategic partnerships are aligned.

Looking ahead, we believe the opportunity extends beyond plastics into broader material systems, including paper packaging, textiles, e-waste, and metals recovery.

The transition to a circular economy will take time, but the direction is clear. In a more volatile world, resilient supply chains matter more than ever. Circularity is becoming a strategic component of how those systems are built.