Henkel Invests into Specialist Circular Economy Fund

The department Ventures of the international chemical and consumer goods company Henkel has closed its investment into Circularity European Growth Fund I LP, an impact fund managed by Circularity Capital.

With the investment of five million pounds, the company is taking another step in expanding the company’s venture capital activities while further promoting a circular economy, according to a press release in January. As reported, the firm, with headquarter in Germany, has outlined a circular economy strategy including a target for 100 percent of its packaging to be recyclable, reusable or compostable by 2025 (excluding adhesive products where residual amounts interfere with the recyclability or pollute the recycling stream). Within the same timeframe, Henkel aims to use 35 percent recycled plastic for its consumer goods products in Europe, the company underlined.

Circularity Capital invests into companies from different development stages with a proven revenue model and a strong circular economy value creation potential. “As such, the fund will generate value for all three business units of Henkel – for the Beauty Care and Laundry & Home Care consumer businesses as well as for the Adhesive Technologies advanced materials business,” the investor is quoted. “It provides access to a powerful network and significant European pipeline of small and medium enterprises enabling the circular economy.” The fund would offer access to high growth companies with strong expertise in fields, which are relevant for Henkel: from circular packaging, business models, materials and products to enabling data solutions and recycling technologies.

Henkel Ventures is Henkel’s corporate venture capital engagement with a total volume of up to 150 million Euros. Building on existing successful collaborations between Henkel’s three business units and start-ups, Henkel Ventures focuses on a variety of business-related search fields. The investment into the Circularity European Growth Fund I follows further direct and fund investments. Last year, the company among others announced its investment into a fund from China Materialia, enabling Henkel’s Adhesive Technologies business unit to access the growing scene of advanced materials start-ups in China and adjacent Asian markets.

www.circularitycapital.com, www.henkel-ventures.com

(GR 12019S)