Circulate Capital Raises $220M for Asia Fund II to Scale Circular…

Team S · 2026-04-15T14:35:57.000Z

Singapore-based investment firm Circulate Capital has raised $220 million at the first close of its Asia-focused Fund II, highlighting strong global investor momentum behind circular economy solutions and sustainable infrastructure. The fund has already surpassed 70% of its $300 million target and exceeded the size of its previous fund, signaling growing confidence in circular supply chains as a scalable and commercially viable asset class. Circulate Capital’s new fund is designed to deploy growth capital into recycling and circular economy businesses across South and Southeast Asia, including key markets such as India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia. The focus spans plastics, packaging, electronics, and apparel sectors where waste management and material recovery remain critical challenges. The fund aims to finance nearly two million tonnes of recycling and waste collection capacity over time, with projections to prevent approximately 30 million tonnes of unmanaged waste and reduce more than 50 million tonnes of CO₂ emissions over the next decade. Investors in the fund include a diverse mix of multinational corporates such as Coca-Cola, Danone, Dow, and Procter & Gamble, alongside development finance institutions including the International Finance Corporation (IFC) and British International Investment. Institutional investors, climate-focused funds, and global family offices have also participated, reflecting a convergence of financial returns and environmental impact. The fund’s strategy aligns with a broader global shift, where circular economy solutions are increasingly viewed not just as sustainability initiatives but as critical infrastructure for resilient supply chains and resource efficiency. As regulatory pressure and material scarcity intensify, investments in recycling and circular systems are becoming central to long-term economic growth. With this fund, Circulate Capital is positioning itself at the forefront of sustainable finance in emerging markets, aiming to scale high-impact businesses that address both environmental challenges and commercial opportunities across Asia.

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Circulate Capital Raises $220M for Asia Fund II to Scale Circular… | Newnex