Circular economy investor Closed Loop Partners (CLP) announced today the launch of Circular Services, a developer and operator of recycling and reuse infrastructure, established with over 1 million tons of annual recycling capacity across the U.S.
The platform, which will be majority-owned by CLP is launching with $700 million in backing from global alternative asset investor Brookfield Asset Management, including a $200 million initial investment, and $500 million committed for growth opportunities. The Partnership Fund for New York City is also joining as an investor.
According to CLP, the new platform is being launched as zero-waste goals become a top-priority for cities across North America, with the expansion of recycling and reuse services enabling municipalities and businesses to avoid landfill costs and achieve emissions reduction goals.
Circular Services will be the largest privately held recycling company in North America, owning and operating municipal recycling facilities across the U.S., major municipal and commercial contracts to recycle and reuse paper, metal, glass, plastic, organics, textiles and electronics in states including New York, New Jersey, Pennsylvania, Arkansas, Florida, Texas and Arizona. The company owns or operates twelve facilities, several long-term municipal and commercial contracts, and has a pipeline of growth opportunities.
Ron Gonen, Founder and CEO of Closed Loop Partners., said:
“Circular Services is building circular economy infrastructure that will serve the financial and environmental interests of cities, consumers, businesses. We are excited to accelerate the transition to the circular economy, an economic system that invests in the continual use of commodities, reducing the reliance on natural resource extraction and landfills.”
Brookfield’s commitment marks the first circular economy-focused investment by its Brookfield Global Transition Fund (BGTF). Launched last year, the fund raised $15 billion, making it the largest private equity fund to date dedicated to facilitating the global transition to a net-zero carbon economy.
Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF, said:
“We cannot create a net zero economy without significantly scaling the infrastructure required for a circular economy. Brookfield has developed a blueprint for transition investing, combining a prudent and patient approach to long-term infrastructure development with the emerging business models that are critical to lowering carbon emissions while generating attractive risk adjusted returns for our investors.”