SG's Circulate Capital raises $220m for Asia fund

Singapore-based Circulate Capital has raised US$220 million in a first close for its second Asia fund as investor appetite for ESG products weakens.

The firm invests in plastics recycling and packaging businesses, and CEO Rob Kaplan said the close lifts its assets under management to US$480 million, with backers including Builders Vision, The Coca-Cola Co., plus the Emerging Markets Climate Action Fund co-managed by Allianz Global Investors.

The fund targets South and Southeast Asia and will focus on plastics while adding fabric recycling and sustainable packaging, and it aims to raise US$300 million by end-2026.

A person familiar with the documents said it is targeting around a 20% net internal rate of return with typical cheques of US$15 million to US$25 million.

Circulate’s first fund backed waste aggregators such as Srichakra Polyplast and Union J. Plus, and CEO Rob Kaplan said corporate investors remain responsible for their plastic footprint.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Circulate Capital’s portfolio leans toward proven B2B recycling operators

Srichakra Polyplast and Union J. Plus are among Circulate Capital’s portfolio companies.
Founded in 2010, Srichakra is an operating company that handles waste management plus recycling for large buyers in beverages and fast-moving consumer goods (FMCG) 1.
Most revenue comes from business-to-business (B2B) work, including longer-term contracts that help smooth cash flow 1.
Circulate’s Series A investment of INR 202.8 million funded new recycling technologies plus a wider product line, which supports growth in companies with working operations rather than very early-stage bets 1.

Policy and corporate buying keep plastics recycling demand intact

Circulate is raising money during softer ESG fund flows, yet recycling in South and Southeast Asia can still draw support from rules plus corporate purchasing targets.
Extended producer responsibility (EPR) has rolled out in several Southeast Asian countries, including Vietnam and the Philippines. This policy makes producers responsible, financially or physically, for post-consumer waste management 2.
The EU plans a ban by 2026 on plastic-waste exports to countries outside the Organisation for Economic Co-operation and Development (OECD). That shift could push parts of the region to build local recycling capacity 2.
Large fast-moving consumer goods brands also set goals to use 20%–50% recycled content in products, which supports steady demand for recycled plastics 2.