Circular economy investor Closed Loop Partners announced today the final close of the Closed Loop Leadership Fund, raising over $200 million for its private equity fund focused on investing in best-in-class circular business models, aimed at keeping packaging, organics, electronics and apparel out of landfills and within a circular system.
Closed Loop Partners is an investment firm comprised of venture capital, growth equity, private equity, project-based finance, and an innovation center focused on building the circular economy. The platform manages over $475 million, and its investments have kept 3.6 million tons of materials in circulation and avoided 6.8 million tonnes of greenhouse gas emissions.
Launched in 2019, the Leadership fund is the largest to date for the firm. The fund acquires companies along the value chain to build circular supply chains. Investments to date include Apkudo, a supply chain technology company enabling transparency across the lifecycle of electronic devices, and Sims Municipal Recycling, which manages New York City’s municipal recycling contract, the largest in North America.
Ron Gonen, Founder & CEO of Closed Loop Partners, said:
“Since its launch in 2019, the Closed Loop Leadership Fund, our buyout strategy at Closed Loop Partners, has made significant strides acquiring and building businesses at the forefront of developing circular supply chains at scale. This final close of the Fund, which includes a number of leading investors, is a milestone for the development of the circular economy.”
New investors in the fund include BlackRock, Demark-based philanthropic fund Realdania and sustainable investor KIRKBI, joining existing investors including Nuveen, Nestlé, Microsoft, PepsiCo, and Unilever, among others.
Lynn Baranski, Global Head of Investments, BlackRock Private Equity Partners, said:
“Transitioning to a circular economy represents a capital shift of $4.5 trillion by 2030, according to research. There are strong tailwinds of consumer demand, cost-savings and resiliency driving the shift away from a linear economy. Closed Loop Partners has the expertise, thought leadership and differentiated execution ability to help capture the opportunity of this shift and drive positive economic, social and environmental outcomes through its investments.”
Chastity McLeod, Director of Technical Packaging, Nestlé USA, added:
“As an early investor in the Closed Loop Leadership Fund, one of our key goals was to drive increased investment in circular supply chains from the financial community as we continue our work to help create a waste-free future. We are thrilled to see the growth and impact of the fund since its launch and are proud to close the fund with such a diverse group of investors that will help scale the solutions needed to advance a circular economy.”