TLDR:
- Circulate Capital is investing in Latin America to support the growth of plastics recycling in response to increased demand for recycled plastics.
- The firm’s first investment in Latin America is in Polyrec S.A.S., a flexible plastic recycling facility in Colombia, aiming to prevent plastic waste from reaching the oceans.
More than two dozen countries in Latin America have implemented laws to reduce single-use plastics, creating a demand for recycled plastic that surpasses current recycling capacity. Circulate Capital has raised $66 million for Latin America, with a focus on Colombia, Brazil, Mexico, and Chile. The investment in Polyrec S.A.S. in Colombia is part of the firm’s strategy to address plastic waste in the region and capitalize on the growing market for recycled plastics worldwide. Circulate has identified over 100 recycling companies in Latin America that require at least $240 million in growth capital.
Policy changes in Latin American countries are driving the plastics recycling sector, with companies like Circulate responding to the aggressive regulations. The investment in Polyrec aims to prevent 100,000 tons of plastic from reaching the oceans. Circulate’s funds in Latin America come from various investors and corporate backers, signaling a shift towards sustainable investments in the region. The firm’s investments in Asia have attracted significant co-investment and helped reduce carbon emissions and create jobs. Women-led companies make up over half of Circulate’s portfolio, reflecting the sector’s dynamism and potential for inclusive growth.
