ImpactAlpha, July 28 — Circulate Capital has been investing in recycling and waste-reduction efforts to keep plastic out of oceans and waterways since 2019 via its $112 million Circulate Capital Ocean Fund. The Singapore-based firm has raised $53 million for a new Circulate Capital Ocean Fund to invest at the intersection of climate tech, plastic recycling and the circular economy.
“The fund will help address plastic pollution and climate change through critical investments in recycling, waste management and innovations in alternative materials and advanced recycling technologies,” said William Sonneborn of International Finance Corp., which allocated $10 million to the fund.
IFC’s commitment includes $5 million equity from a blended finance fund with Finland that aims to unlock private financing into climate-smart projects in low-income developing countries. The fund will “increase access to much-needed capital for the small and medium-sized enterprises delivering these important solutions,” said Sonneborn.
Proparco committed $5.6 million to the Circulate fund. Other investors include Align Impact, Builders Vision, Eden Impact, DF Impact Capital and Minderoo Foundation. “It’s clear that the time to invest in the circular economy is now,” said Circulate Capital’s Rob Kaplan.
The Circulate fund has made several investments to date, including Circ, which returns old clothes from the raw materials from which they were made; and Lucro, which specializes in recycling difficult-to-manage flexible plastic.