Circulate Capital has raised $220M for the first close of Circulate Capital Asia II (Fund II). This is over 70% of its overall target of $300m, surpassing Fund I, which stood at $188m. Growth capital will now be deployed to scale circular supply chains and recycling businesses across South and Southeast Asia, with a focus on plastic solutions and packaging.
Circulate Capital
Circulate Capital raises $220M at first close for Asia Fund II
A variety of global investors (e.g., strategic corporates, Development Finance institutions (DFIs), and institutional and family office LPs) were involved in the latest fundraise. Returning corporates like The Coca-Cola Company, Danone, Dow, and Procter & Gamble reaffirmed their commitment to the strategy. They joined existing DFIs British International Investment, the French DFI Proparco, and the International Finance Corporation (IFC), along with leading family office Builders Vision.
The Fund also received a cohort of new institutional partners, including:
- The Emerging Markets Climate Action Fund (EMCAF) is co-managed by Allianz Global Investors and the European Investment Bank.
- A Dutch pension fund through Achmea Investment Management’s Impact Platform.
- As well as public institutions, including Impact Fund Denmark (IFDK), the Swiss DFI SIFEM, managed by responsAbility Investments AG, and Australian Development Investments (ADI).
Additionally, the Fund also saw support from high-profile family offices and impact investors, including Stella (the investment entity of the Heinz Hermann Thiele family foundation), Clotho Family Office, Netherlands-based impact specialist Wire Group, and Fondation Prince Albert II de Monaco.
What to expect following Fund II
Fund II will result in high-growth investments in key markets, including India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia. Real-world examples include:
- Scaling mature plastic recycling streams like PET.
- Building nascent markets for other plastic materials.
- Promoting alternative paper-based packaging solutions.
- Recovering critical and rare earth materials trapped in recyclable electronics and batteries.
“Building circular supply chains takes long-term commitment and strong collaboration across the value chain. said Jean-Yves Krummenacher, Global Chief Procurement Officer, Danone. “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.”
Keith Cleason, President, Packaging & Speciality Plastics, Dow, added, “Circulate Capital’s initiative has delivered tangible impact in areas key to progressing circularity across the ecosystem, such as expanding the capacity of mechanical recycling and enabling flexible recycling. Dow remains committed to bringing together ideas from across the value chain to deliver new solutions in circularity, and we look forward to continued collaboration as Fund II builds on this momentum in South and Southeast Asia.”
“Participating in Circulate Capital’s Fund II is a natural next step for us, given the firm’s proven track record and our existing partnership,” said Chris Wu, Vice President, Investments at Builders Vision. “What truly sets Circulate apart is its combination of deep regional expertise across South and Southeast Asia and strong relationships with multinational corporations. Paired with a rigorous approach to impact measurement and a clear ability to cultivate proprietary deal flow in the region, they have developed a distinctive advantage in sourcing high-quality opportunities in the circular supply chain. We look forward to continuing to build alongside a team that is demonstrating how addressing the plastic crisis can be both scalable and commercially compelling.”
“We decided to support Circulate Capital with EMCAF because their specialist focus enables a clearly differentiated market positioning and delivers tangible value to portfolio companies and investors alongside strong environmental impact,” concluded Peter Ellersiek, Co-lead Portfolio Manager, Emerging Market Climate Action Fund (EMCAF).