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Circulate Capital raises $220-M at first close for $300-M Asia II Fund

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Singapore-based Circulate Capital has raised USD 220 million as the first close of its Circulate Capital Asia II Fund, achieving over 70% of its USD 300 million target. Investors in the second fund include The Coca-Cola Company, Danone, Dow, and Procter & Gamble, alongside development finance institutions, institutional investors, and family offices.Circulate Capital is focused on the circular economy. The new fund will be deployed as growth capital to scale circular supply chains and recycling businesses across South and Southeast Asia. The fund will concentrate on plastic solutions and packaging, electronics, and apparel in markets including India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia. The firm had previously raised USD 188 million for Fund I.In India, Circulate Capital completed a full exit from Recykal, a digital waste management platform, and partially exited Lucro, a recycler specialising in flexible plastic packaging, and Srichakra Polyplast, a food-grade plastic recycler.Fund II will aim to finance nearly 2 million tonnes of collection and recycling capacity, with investments planned for scaling mature plastic recycling streams such as PET, building nascent markets for other plastic materials including polyolefins, driving innovation in alternative paper-based packaging solutions, and recovering critical materials from recyclable electronics and batteries.