Singapore's Circulate Capital Raises $220M for Circular Economy Asia Fund II Targeting Plastic Recycling Boom

Circulate Capital, a Singapore-based investment firm, has successfully raised $220 million in first close for its Circulate Capital Asia Fund II.

This funding represents over 70% of the fund's $300 million target, surpassing the $188 million from its inaugural fund.

Strategic Focus on Southeast Asia's Circular Supply Chains

The fund targets scaling circular supply chains in plastic solutions, packaging, electronics, and apparel across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia.

Investments will prioritize plastic recycling like PET and polyolefins, alternative paper-based packaging, and material recovery from electronics and batteries.

Diverse Investor Backing Signals Growing Confidence

Returning investors include corporates like The Coca-Cola Company, Danone, Dow, and Procter & Gamble, alongside development finance institutions such as British International Investment and IFC.

New partners feature EMCAF, Achmea Investment Management, and family offices like Builders Vision, highlighting the appeal of impact-driven returns.

Proven Track Record and Ambitious Impact Goals

Building on Fund I's successes, including exits that prove circular economy as a viable asset class, Fund II aims to finance nearly two million tons of collection and recycling capacity.

Over ten years, it projects preventing 30 million tonnes of unmanaged waste and reducing over 50 million tonnes of CO2 emissions.

At least 50% of the portfolio will align with 2x gender smart investing targets upon exit, fostering inclusive growth.

Leadership Vision for Scalable Sustainability

CEO Rob Kaplan emphasized the fund's exclusive focus on South and Southeast Asia's high-velocity circular economies for financial and impact returns.

Investors like Danone's Jean-Yves Krummenacher and Dow's Keith Cleason praised the collaborative approach to resilient, circular supply chains amid Asia's plastic crisis.