Circulate Capital, a Singapore-based investment management firm, has announced the third close of its second fund Circulate Capital Ocean Fund I-B (CCOF I-B), bringing the vehicle’s total commitments to $53 million.
DealStreetAsia broke the news of the funding milestone on July 19 based on the investor’s filing to the US Securities and Exchange Commission (SEC), which showed that the fund had received commitments from 38 investors since May 2021.
LPs leading the investment include the World Bank Group’s IFC, which committed $10 million, and Proparco, which committed $5.6 million. Proparco is a subsidiary of Agence Française de Développement (AFD) devoted to private-sector financing.
IFC’s investment includes an equity commitment of $5 million from the Finland-IFC Blended Finance for Climate Change Program.
CCOF I-B’s latest close brings Circulate Capital’s total assets under management to $165 million, making it the largest impact investment firm dedicated to fighting plastic pollution and advancing the circular economy in South and Southeast Asia.
The fund, along with the $112 million Circulate Capital Ocean Fund (CCOF I), invests in companies across the plastic-recycling and waste-management value chains, as well as startups focused on early-stage disruptive innovation and technology aligned with Circulate Capital Disrupt, the firm’s climate tech strategy, such as new delivery models, advanced recycling technologies, and new alternatives to single-use plastic.
“We’re delighted to support Circulate Capital in its efforts to tackle the plastic waste crisis in Asia,” said William Sonneborn, IFC’s Senior Director of Disruptive Technologies and Funds.
“The fund will help address plastic pollution and climate change through critical investments in recycling, waste management, and innovations in alternate materials and advanced recycling technologies. It will also increase access to much-needed capital for the small and medium-sized enterprises delivering these important solutions,” he added.
“Waste management and sustainable-plastic recycling have proven to be top priorities to invest in to reduce greenhouse-gas emissions,” said Diane Jegam, Proparco’s Regional Director for South Asia.
CCOF I-B is backed by international private investors including Align Impact, Builders Vision, Benjamin Duncan Group, DF Impact Capital, Eden Impact, Huang Chen Foundation, Jebsen & Jessen, Minderoo Foundation, Rumah Group, North-East Family Office, SK2 Fund, Twynam Investments, the Woodcock Foundation, and Neil Yeoh of OnePointFive.
In April 2022, Circulate Capital announced an expected commitment to be made later this year by the European Investment Bank (EIB), which will invest up to $20 million in CCOF I-B.
In December 2021, Circulate Capital announced the $25 million second close of CCOF I-B, which was followed by the June 2021 announcement of the CCOF I-B fund launch.
Circulate Capital is an investment management firm dedicated to the development of a circular economy to combat plastic pollution through investments in high-growth opportunities at the nexus of climate-tech and plastics recycling infrastructure.
In 2019, Circulate launched its debut fund Circulate Capital Ocean Fund (CCOF I), the world’s first investment fund dedicated to preventing ocean plastic waste in South and Southeast Asia through investments in catalytic opportunities in recycling and the circular economy that can generate competitive returns.