First Investments Targeted in Asia by Early 2020

In December last year, New York-based investment management firm Circulate Capital has announced the first close of the 106 million US-Dollar “Circulate Capital Ocean Fund (CCOF)”, which was launched in Singapore.

As reported, the company is dedicated to incubating and financing enterprises and infrastructure that prevent ocean plastic in South and Southeast Asia. “The fund is dedicated to address Asia’s plastic crisis and is also one of the ten largest ASEAN-based Venture Capital Funds in the market,” Circulate Capital emphasized. CCOF’s founding investors include PepsiCo, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company LLC. With 60 percent of ocean plastic originating from the region, Asia is the biggest source of plastic leakage into global oceans, a press release said. “To address the financing gap between available private capital and the resources needed by Asia’s waste industry systems, CCOF will provide both debt and equity financing to waste management, recycling and circular economy start-ups and SMEs in South and Southeast Asia, focused on preventing plastic pollution and advancing the circular economy.” By its own account, Circulate Capital has identified more than 200 potential investment opportunities across a range of industries in the region, with its first investments targeted by early 2020.

Circulate Capital’s investment model seeks to mobilize institutional investors by blending concessionary funds with investment capital, the firm assured. Its objective would be to demonstrate that investments in turning waste into value can ultimately provide attractive financial returns.

(GR12020, Page 5, Photo: Credit Commerce / Pixabay)