Singapore-based circular economy investment manager Circulate Capital has raised $220 million (approximately €185 million) at the first close of Circulate Capital Asia II, a fund targeting the scaling of circular supply chains and recycling businesses across South and Southeast Asia.

According to Circulate Capital, the raise brings the fund to over 70% of its $300 million (€252 million) target, surpassing its predecessor Fund I, which closed at $188 million (€158 million). Over a projected ten-year horizon, the fund aims to finance nearly two million tonnes of collection and recycling capacity, prevent a cumulative 30 million tonnes of unmanaged waste, and avoid or reduce more than 50 million tonnes of CO2 emissions.

Rob Kaplan, founder and CEO of Circulate Capital, said: "Our track record of successful exits demonstrates that the circular economy is no longer just a subset of ESG or sustainability. It is a sophisticated asset class that can deliver liquidity to private equity investors."

The fund will deploy growth capital across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia, concentrating on plastic solutions and packaging and electronics and apparel. Focus areas include scaling mature plastic recycling streams such as PET, developing nascent markets for polyolefins, advancing alternative paper-based packaging, and recovering critical and rare earth materials from recyclable electronics and batteries.

Investors include strategic corporates such as The Coca-Cola Company, Danone, Dow, and Procter & Gamble, alongside development finance institutions including British International Investment, Proparco, and the International Finance Corporation, and institutional investors including Allianz GI and the EIB co-managed Emerging Markets Climate Action Fund.

Review the full scope of Circulate Capital's Asia II fund and its circular economy investment strategy in the complete announcement.