NEW YORK, July 18, 2018 /PRNewswire/ -- Circulate
Capital ("Company"), a new impact-focused investment management
company, launched today in partnership with Closed Loop Partners, a
firm that invests in companies, technology and recycling
infrastructure to advance the circular economy, and Ocean
Conservancy, a leading nonprofit environmental advocacy
organization working to protect the world's ocean. Led by
Rob Kaplan, co-founder of Closed
Loop Partners, Circulate Capital will invest in companies,
innovation, and projects that prevent plastic from leaking into the
ocean, with a focus on South and Southeast Asia. Scientists estimate that more
than half of the 8 million metric tons of plastic that flow into
the ocean every year come from developing countries in the region
where waste management has lagged behind rapid economic growth.
The new Company evolved out of the "Closed Loop Ocean" project,
following commitments made by Closed Loop Partners, Ocean
Conservancy, and a number of corporate partners at the Our Ocean
Summit in Malta in October 2017 to create financing vehicles focused
on preventing plastic from flowing into the ocean.
Circulate Capital will operate as a separate and independent
firm with a dedicated team and the resources required to turn this
commitment into reality. Circulate Capital was also created in
collaboration with members of the Closed Loop Partners Ocean
steering committee, which is composed of leading intergovernmental
organizations, associations and many of the world's largest
companies, including 3M, The
Coca-Cola Company (NYSE: KO), Kimberly- Clark (NYSE: KMB),
Dow (NYSE: DWDP), PepsiCo (NASDAQ:
PEP), Partnerships in Environmental Management for the Seas of
East Asia (PEMSEA), Procter & Gamble (NYSE: PG), American
Chemistry Council, and the World Plastics Council. Members of the
steering committee also provided seed capital alongside the
founding partners.
Building on Closed Loop Partners' successful investment model,
Circulate Capital aims to finance companies and projects that focus
on waste management and recycling in emerging markets in South and
Southeast Asia. The fund will also
support incubation of eco-systems of companies, NGOs and
municipalities that will, among other things, increase the pipeline
of investable opportunities for all investors. First investments
are expected in Q1 2019.
"Circulate Capital seeks to fill capital gaps and prove the
investment market by financing opportunities that collect, sort,
process, and manufacture using waste in areas known to contribute
to the ocean plastic crisis," said Kaplan, founder and CEO of
Circulate Capital. "Ocean plastic presents one of the most urgent
and fast-growing ecological challenges of our time. Our objective
is nothing less than to become a leading force behind solving the
capital gaps of companies and infrastructure that prevent ocean
plastic. Our firm isn't the only solution to ocean plastic, and we
depend on enabling policies, regulatory environments, supply
chains, and strong partnerships in the ecosystem. Our goal is to
remove capital as a barrier. We are grateful to the commitment of
Closed Loop Partners and Ocean Conservancy as well as to the
members of our steering committee for their support."
"From Buckingham Palace to
Starbucks' board room, we are truly seeing a paradigm shift on the
ocean plastic issue, with consumers, governments, and industry all
recognizing the problem and searching for solutions," said
Susan Ruffo, managing director of
international initiatives for Ocean Conservancy. "While a suite of
solutions across sectors will be necessary to truly stem the tide
of ocean plastic, science shows that investing in waste management
and collection in Southeast Asia
is one of the single most impactful ways companies can step up to
help solve the ocean plastic crisis, so we are thrilled to support
Circulate Capital in realizing this next step."
"Circulate Capital is the realization of many months of research
and planning on the part of Closed Loop Partners and Ocean
Conservancy to design a structure that can dedicate the time and
resources necessary to tackle the complexity of the ocean plastic
problem at scale," said Ron Gonen,
co-founder and CEO of Closed Loop Partners. "Rob has tremendous
subject matter expertise on the topic, having run Closed Loop
Ocean, and thanks to his successful tenure at Closed Loop, he
brings a track record as a proven leader and investment manager.
We're excited to continue our collaboration."
"P&G is proud to be part of Circulate Capital. Just like the
Closed Loop Fund, this will address the root cause and help develop
the right infrastructure to drive positive change. Working
together, we believe we can halt the flow of plastic into the
world's oceans," said Steve Sikra,
P&G Associate Director, Corporate R&D, Global Product
Stewardship.
"We are excited to support Circulate Capital and their aim to
prevent the flow of ocean plastic," says Ben Jordan, Senior
Director, Global Environmental Policy, The Coca-Cola Company. "We
aim to be a driver of the circular economy as we continue toward
our vision of a World Without Waste."
"Circulate Capital is the type of active engagement we need to
accelerate the implementation of waste management systems with
effective recycling processes that keep plastic waste out of the
ocean," said Diego Donoso, President
of Dow Packaging & Specialty Plastics. "With the growing
economies across Southeast Asia
comes increased demand for more consumer packaged goods, but
unfortunately the development of waste management infrastructure
has not kept pace with the increased amount of waste that is being
generated. This initiative can serve as a model for how we can
bring solutions to bear on this problem with the goal of keeping
ALL waste out of the ocean."
Additional quotes from PEMSEA, American Chemistry Council, World
Plastics Council, Kimberly-Clark and 3M are available upon request.
RFP Process for Investment
Circulate Capital has also announced a Request for Proposals
(RFP) process to solicit
applications for financing for companies and projects from
qualifying entrepreneurs from South and Southeast Asia, with the goal of selecting the
first recipients by early 2019.
Said Kaplan: "South and Southeast Asian countries produce the
most plastic waste, but largely because they lack the necessary
waste infrastructure to manage the problem. Financing innovative,
local companies that are working to address the challenge is a
critical step to reducing the flow of ocean plastics and also key
to improving economic development and public health outcomes."
About Closed Loop Partners
Closed Loop Partners invests in sustainable consumer goods,
advanced recycling technologies and the development of the circular
economy. www.closedlooppartners.com
About Ocean Conservancy
Ocean Conservancy is working to protect the ocean from today's
greatest global challenges. Together with our partners, we create
science-based solutions for a healthy ocean and the wildlife and
communities that depend on it. www.oceanconservancy.org
About Circulate Capital
Circulate Capital is an impact-focused investment management
firm dedicated to financing companies, projects, and infrastructure
that prevent ocean plastic. We identify, incubate, and invest in
opportunities designed to intercept ocean plastic at the source by
collecting, sorting, processing, and manufacturing using waste in
countries known to contribute to ocean plastic. We were created in
partnership with Closed Loop Partners and Ocean Conservancy, and
are supported by leading intergovernmental organizations,
associations and many of the world's largest consumer product goods
and chemical companies, including 3M,
American Chemistry Council, The Coca-Cola Company, Kimberly-Clark,
Dow, PepsiCo, Partnerships in Environmental Management for the Seas
of East Asia (PEMSEA), Procter
& Gamble, and the World Plastics Council.
For US media:
Cindy Stoller
Confluence Partners
917-331-0418
cstoller@confluencepartners.com
For Asian media:
Cognito Asia
Prisita Menon
+65 9856 4954
Prisita.menon@cognitomedia.com
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SOURCE Circulate Capital