Singapore-based circular economy-focused investment manager Circulate Capital announced that it has raised $220 million at the first close of Circulate Capital Asia II, its new fund focused on investments to scale circular supply chains and recycling businesses across South and Southeast Asia.
According to Circulate Capital, the new fund comes as regulatory changes, supply chain volatility, and consumer brand commitments drive compelling investment opportunities from circular supply chains. The capital raise takes the fund to over 70% of its $300 million target, and surpasses its predecessor Fund I, which closed at $188 million.
The firm said that the new fund will aim to finance nearly two million tonnes of collection and recycling capacity, projected over ten years to prevent a cumulative 30 million tonnes of unmanaged waste and to avoid or reduce more than 50 million tonnes of CO2 emissions.
Rob Kaplan, Founder and CEO of Circulate Capital, said:
“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. With Fund II, we are ready to scale and capture the massive growth potential inherent in these high-velocity economies, to build businesses that deliver financial and impact returns for our investors.”
According to Circulate Capital, the new fund will deploy growth capital across key market including India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia, with a focus on plastic solutions and packaging, as well as electronics and apparel, such as scaling mature plastic recycling streams like PET, building nascent markets for other plastic materials, including polyolefins, driving innovation in alternative paper-based packaging solutions, and recovering critical and rare earth materials trapped in recyclable electronics and batteries.
Investors in the new fund include strategic corporates such as The Coca-Cola Company, Danone, Dow, and Procter & Gamble, Development Finance institutions (DFIs) including British International Investment, the French DFI Proparco, and the International Finance Corporation (IFC), institutional investors including the Allianz GI and EIB co-managed Emerging Markets Climate Action Fund (EMCAF), Achmea Investment Management’s Impact Platform, and public institutions such as Impact Fund Denmark (IFDK), the Swiss DFI SIFEM, managed by responsAbility Investments AG, and Australian Development Investments (ADI) as well as family offices and impact investors including Builders Vision, Stella, Clotho Family Office, Wire Group, and Fondation Prince Albert II de Monaco.
Jean-Yves Krummenacher, Global Chief Procurement Officer at Danone, said:
“Building circular supply chains takes long-term commitment and strong collaboration across the value chain. Our reinvestment in Circulate Capital through Asia Fund II reflects our belief that scaling inclusive recycling systems is essential to keep materials in use, strengthen local ecosystems, and build more resilient supply chains. Through this partnership, we see an opportunity to develop solutions that create lasting value for people, industry, and the planet.”
