Singapore-based circular economy investment manager Circulate Capital announced the first close of its new fund, Circulate Capital Asia II, raising $220 million to support circular supply chains and recycling businesses across South and Southeast Asia. The fund has now reached over 70% of its $300 million target, surpassing its predecessor, Fund I, which closed at $188 million. Circulate Capital aims to finance nearly two million tonnes of collection and recycling capacity, projected over ten years to prevent 30 million tonnes of unmanaged waste and avoid more than 50 million tonnes of CO2 emissions.
Rob Kaplan, Founder and CEO, emphasized that the circular economy has evolved into a sophisticated asset class capable of delivering both financial and impact returns. With Fund II, Circulate Capital plans to scale operations in high-growth economies, targeting opportunities that generate measurable environmental and social benefits while offering liquidity to private equity investors.
The fund will focus on key markets including India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia. Investments will target plastic solutions and packaging, electronics, and apparel. Key initiatives include scaling mature recycling streams such as PET, developing markets for other plastics like polyolefins, innovating paper-based packaging solutions, and recovering critical and rare earth materials from electronics and batteries.
Investors in Circulate Capital Asia II include major corporates such as The Coca-Cola Company, Danone, Dow, and Procter & Gamble, alongside development finance institutions including IFC, British International Investment, and Proparco. Institutional investors, family offices, and impact investors such as Allianz GI, Impact Fund Denmark, and Fondation Prince Albert II de Monaco have also committed to the fund.
Jean-Yves Krummenacher, Global Chief Procurement Officer at Danone, highlighted the importance of long-term commitment and collaboration in building circular supply chains. He noted that the partnership with Circulate Capital provides an opportunity to strengthen local recycling ecosystems, create resilient supply chains, and generate lasting value for industry, communities, and the environment.
Circulate Capital Asia II represents a major step in scaling circular economy investments across the region, combining financial growth with measurable environmental impact, and positioning the fund to play a leading role in sustainable development in South and Southeast Asia.
