ImpactAlpha, April 25 — Global cosmetics giant L’Oréal has made a €50 million ($53.9 million) allocation to Circular Innovation Fund, a joint venture fund of Montreal-based Cycle Capital and Paris-based Demeter. The commitment will provide growth-stage venture funding for companies with waste-reduction solutions in materials, packaging, logistics and recycling.
The cleantech fund managers will target companies and funds in North America, Europe and Asia “to scale circular and profitable solutions for sustainable growth,” said L’Oréal’s Alexandra Palt.
The fund, which is looking to raise €150 million ($162.3 million), has received commitments from the European family office HALTRA and other private investors. Cycle Capital and Demeter also are investing their own capital in the fund.
The fund says it made commitments in early-stage funds Closed Loop Partners and Germany’s European Circular Bioeconomy Fund.
Closed Loop secured $35 million from PepsiCo earlier this year to invest in small-scale recycling facilities in underserved communities.