TLDR:
- Circulate Capital is bringing its recycling strategy to Latin America to address the surge in demand for recycled plastics in the region.
- The firm has raised a total of $66 million for Latin America and has already made investments in recycling companies like Polyrec S.A.S. in Colombia.
In a move to address the growing demand for recycled plastics in Latin America, Circulate Capital has brought its recycling strategy to the region. More than two dozen countries in Latin America have enacted laws to reduce or eliminate single-use plastics, creating a dynamic market for recycling investments and acquisitions. Circulate Capital has raised a total of $66 million for Latin America and has already made its first investment in Polyrec S.A.S., a recycling company based in Barranquilla, Colombia.
The surge in demand for recycled plastic has outpaced the capacity of recycling businesses to meet the new mandates, prompting Circulate Capital to step in and provide growth capital to the sector. With a focus on countries like Brazil, Mexico, Chile, and Colombia, Circulate Capital aims to capitalize on the policy tailwinds supporting recycling initiatives in the region.
The firm has identified over 100 recycling companies in Latin America that require at least $240 million in growth capital. This catalytic capital, which came from partners like IDB Lab, family offices, and corporate backers, will help close the financing gap and make the sector more attractive for traditional capital. Circulate has already invested in companies like Nexus Circular in Brazil and Sinba in Peru.
More than half of the companies in Circulate’s portfolio are led or founded by women, showcasing the dynamism of the sector and its commitment to gender diversity. With investments in companies across Latin America, Circulate Capital is playing a crucial role in driving sustainable development and creating a more inclusive and resilient economy in the region.
