Closed Loop Partners (CLP), an investor in the circular economy, has announced the launch of Circular Services, a developer and operator of recycling and reuse infrastructure with over 1 million tonnes of annual recycling capacity across the United States.
The platform, which will be majority-owned by CLP, will start with $700 million in backing from global alternative asset investor Brookfield Asset Management, comprising an initial investment of $200 million and growth capital commitments of $500 million. Additionally, the Partnership Fund for New York City is an investor.
According to CLP, the new platform is launching as zero-waste objectives become a primary focus for cities across North America, with the rise of recycling and reuse services allowing municipalities and businesses to avoid disposal expenses and achieve emissions reduction goals.
Circular Services will be the largest privately held recycling company in North America, with municipal recycling facilities across the United States and major municipal and commercial contracts to recycle and reuse paper, metal, glass, plastic, organics, textiles, and electronics in New York, New Jersey, Pennsylvania, Arkansas, Florida, Texas, and Arizona. The organization owns or runs twelve facilities and has a pipeline of growth potential.
Ron Gonen, founder and chief executive officer of Closed Loop Partners, stated:
"Circular Services is constructing infrastructure for the circular economy that serves the financial and environmental interests of communities, consumers, and enterprises. We are thrilled to expedite the transition to the circular economy. This economic system invests in the continuous use of commodities and reduces dependency on the exploitation of natural resources and the usage of landfills.
This is the first circular economy-focused investment made by Brookfield's Brookfield Global Transition Fund (BGTF). In its first year, the fund raised $15 billion, making it the largest private equity fund ever set up to help the world move to a carbon-neutral economy.
BGTF's Managing Partner and Chief Investment Officer, Natalie Adomait, stated:
"We cannot develop a net-zero economy without expanding the infrastructure required for a circular economy." Brookfield has established a roadmap for transition investing that combines a prudent and patient approach to long-term infrastructure development with developing business models that are crucial to reducing carbon emissions while delivering attractive risk-adjusted returns for our investors.