Circularity Capital has reached the first close its new fund for, yes, the circular economy.
The Edinburgh-based private equity firm is looking for transformers — companies reusing old materials and reducing waste — as well as enablers — firms that support the circular practices in other companies.
Its new Circularity European Growth Fund will invest between $1.2 million and $6.2 million in growth-stage European firms boosting the “circular economy” and decoupling business growth from resource constraints, according to Environmental Finance [paywall].
The fund is targeting a total of $62.8 million. So far, two institutional investors and several family offices have invested undisclosed amounts and Circularity Capital itself added 10 percent of the total for the first close.
Companies are seeing opportunities to waste less and earn more through circular practices. The European Union has an action plan for the transition to a circular economy. Circularity has a cool video.
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Photo credit: Shutterstock / Andrey Kozachenko