In brief: Circular economy growth fund raises €215m

Circularity Capital has closed its second fund – the world’s ‘largest circular economy private equity fund’, according to the firm.

Circularity Capital has closed “the largest specialist circular economy private equity fund across the globe” at an extended hard-cap of €215 million, according to the firm.

The Circularity European Growth Fund II is classified under Article 9 of the EU SFDR. Investors include “blue-chip institutional investors including pension funds, fund of funds, insurance companies and family offices across Europe, UK and North America”, the emailed statement from the firm said.

This is Circularity’s second fund: it raised £60 million ($76 million; €71 million) in 2018 for its first fund from investors including AXA IM Alts, BNP Paribas Fortis, superannuation fund Christian Super, corporate Henkel AG & Co and Finnish government-backed investor Sitra.

The Edinburgh-headquartered firm is investing both funds in growth-stage companies focused on circular economy – such as recycling technologies and companies preserving or extending the useful life of products and assets.

Not to be confused with…

Circulate Capital. This Singapore-based impact manager is raising capital for its Circulate Capital Ocean Fund and has secured commitments from the European Investment Bank as well as other institutions (read more here).

The fund strategy is to make growth capital investments in the circular economy and early stage investments that specifically address plastic waste. The IFC is also considering a commitment.