Circulate Capital has raised $220 million at the first close of its Asia-focused fund, Circulate Capital Asia II, surpassing 70% of its $300 million target and exceeding the size of its predecessor, which closed at $188 million. The Singapore-based investment manager plans to use the new capital to scale circular supply chains and recycling businesses across South and Southeast Asia, targeting sectors where regulation, material scarcity, and brand commitments are driving circularity from a sustainability preference to an operational necessity. The strong first close signals growing investor confidence in circular economy assets as a distinct, investable category rather than a niche ESG product.
The fund aims to finance nearly two million tonnes of collection and recycling capacity, projected to prevent 30 million tonnes of unmanaged waste and reduce over 50 million tonnes of CO2 emissions over the next decade. This approach reflects a shift from proving the viability of circular businesses to scaling them as infrastructure for industrial supply chains in high-growth markets. The fund will deploy capital across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia, where rising consumption, manufacturing, and packaging demand make recycled materials strategically important.
While plastics and packaging remain central, the fund also targets broader material streams, including polyolefins, paper-based packaging alternatives, and critical materials recovery from electronics and batteries. This expanded focus aligns with evolving market needs, including material security, industrial input recovery, and supply chain resilience, reflecting a practical shift from circularity as a sustainability goal to a strategic supply approach.
The investor base illustrates the fund’s broad appeal, comprising strategic corporates like Coca-Cola, Danone, Dow, and Procter & Gamble, development finance institutions such as IFC, Proparco, and British International Investment, institutional and public investors including EMCAF and SIFEM, as well as family offices and impact-focused investors. This mix demonstrates that circular economy assets can simultaneously address strategic, developmental, and financial objectives, signaling increased market maturity and underwrite-ability.
Founder and CEO Rob Kaplan emphasized that the circular economy is now a sophisticated asset class capable of delivering liquidity to private equity investors. Circulate Capital is positioning circular supply chains not just as impact investments but as commercially viable growth opportunities. The size of the fund, investor diversity, and strategic focus indicate a more mature phase of circular economy investing, where scaling operations and capturing market opportunities are prioritized over proving relevance.
