Lombard Odier IM Wins Mandate for $500 Million Fund Targeting Circular Plastic Solutions
Global wealth and asset manager Lombard Odier Investment Managers (LOIM) announced that it has been mandated by global non-profit The Alliance to End Plastic Waste (Alliance) to build and manage a new circular plastic fund.
The new fund will seek to invest in scalable solutions to remove plastic waste from the environment, increase recycling and drive the transition globally towards a circular economy for the plastic value chain, estimated to represent a $1 trillion global economic opportunity by 2030. Key themes targeted by the fund will include collection and sorting infrastructure, technology-enabled recycling infrastructure, design solutions for improved plastic durability, reuse and recyclability. The fund will also look to drive innovation in plastic chemistry and production, targeting more effective end of life treatment for plastics.
Jean-Pascal Porcherot, Co-Head of LOIM and Managing Partner of Lombard Odier Group said:
“This strategy presents a compelling investment opportunity. It will target opportunities across all segments of the private equity spectrum – including direct and co-investments investments – with the objective to reduce plastic waste issues worldwide and deliver attractive financial returns and sustainability outcomes.”
Alliance will serve as a cornerstone investor in the fund, which aims to raise $500 million from institutional and other accredited investors. Additionally, Alliance will act as a technical adviser to the fund, providing industry-led expert advice on the technical feasibility, commercial viability and scalability of plastic circularity solutions, as well as waste management technology and infrastructure.
Jim Fitterling, Chairman and CEO of Dow and Alliance Chair, said:
“The systemic transformation needed to enable a plastic circular economy requires societal, infrastructure and technology innovations. This strategy presents a meaningful opportunity to put the plastic waste management ecosystem firmly on the agendas of institutional investors to accelerate the transition to a global plastic circular economy.”