Circulate Capital Raises $220M First Close for Asia II, Backed by Coca-Cola, Danone, and Global DFIs
TL;DR
Circulate Capital has raised $220 million in the first close of Circulate Capital Asia II, its second fund targeting circular supply chains and recycling businesses across South and Southeast Asia. The fund is targeting $300 million total and has already surpassed the $188 million raised for Fund I, signaling that the circular economy thesis is gaining serious traction with institutional LPs, DFIs, and blue-chip corporates alike.
Key Takeaways
First close exceeds Fund I total, signaling LP conviction. Raising $220 million at first close, already exceeding the $188 million Fund I total, is a powerful signal. Circulate Capital has moved from proof-of-concept to institutional-grade platform in a single fund cycle, attracting European pensions, sovereign-adjacent capital, and global DFIs alongside returning corporate strategics.
Corporate LPs returning is the real validation. Coca-Cola, Danone, Dow, and Procter & Gamble are all back for Fund II. These are not passive check-writers, they are the companies whose supply chains Circulate Capital is actively rebuilding. When the companies creating the waste problem keep investing in the solution, it tells you the economics work.
European institutional capital is pouring into Asian impact. The LP roster reads like a who's who of European impact capital: EMCAF (co-managed by Allianz Global Investors and the European Investment Bank), Achmea Investment Management, Impact Fund Denmark, SIFEM, and Fondation Prince Albert II de Monaco. European institutions are increasingly looking to Asia for impact returns.
Exits from Fund I prove the liquidity thesis. Circulate Capital has already demonstrated partial exits from Fund I, including Recykal, Lucro, and Srichakra Polyplast. For an impact fund operating in emerging Asian markets, showing exits this early is uncommon and materially de-risks the strategy for new LPs.
Fund Overview
Fund Name: Circulate Capital Asia II
Fund Size: $220M first close / $300M target
Stage: Growth equity
Check Size: Not disclosed
Geography: India, Indonesia, Thailand, Vietnam, Philippines, Malaysia
Focus: Circular supply chains, plastic recycling, packaging, electronics, and apparel
Key LPs: Coca-Cola, Danone, Dow, P&G, British International Investment, IFC, Proparco, EMCAF (Allianz/EIB), Achmea, Builders Vision, Stella (Thiele family), Impact Fund Denmark, SIFEM, Australian Development Investments, Fondation Prince Albert II de Monaco
Why This Fund Matters
The circular economy has long been discussed as one of the most important investment themes of the next decade, but capital deployment has lagged the narrative. Most VC and growth equity firms have stayed on the sidelines, preferring the familiar territory of software and AI. Circulate Capital is one of a handful of specialist managers that has actually built a track record deploying growth capital into circular supply chain infrastructure across some of the most complex markets in the world.
South and Southeast Asia generate a disproportionate share of global plastic waste relative to their recycling capacity. The opportunity is structural: as regulation tightens, EPR (extended producer responsibility) frameworks expand, and corporate net-zero commitments hit supply chain deadlines, the demand for investable recycling and circular supply chain companies will only accelerate. Circulate Capital is positioning itself as the go-to capital partner for this transition.
What makes this fund particularly interesting is the corporate LP base. Having Coca-Cola, Danone, Dow, and P&G as returning investors is not just a capital story, it is an embedded market access advantage. These corporates are both the source of the waste problem and the end-buyers of recycled materials, creating a closed-loop dynamic that few other fund managers can replicate.
The fundraising velocity also matters. Hitting 73% of target at first close in what remains a tough fundraising environment for non-AI funds speaks volumes about LP appetite for specialist climate strategies with demonstrated exits.
The Team
Circulate Capital was founded by Rob Kaplan, who built the firm from the ground up as a Singapore-based investment platform dedicated to solving the ocean plastic crisis through private capital. Kaplan has assembled a team with deep operational expertise across South and Southeast Asian markets, combining investment management with hands-on portfolio support in waste management, recycling technology, and circular supply chain development. The firm manages over $400 million in assets across its strategies.
Early Portfolio
While specific Fund II investments have not yet been announced, Fund I built a portfolio spanning the circular economy value chain across India and Southeast Asia. Notable portfolio companies include Recykal, a digital waste management platform in India, Lucro, a plastic packaging recycler, and Srichakra Polyplast, which specializes in food-grade plastic recycling. The firm has already achieved partial exits on several of these positions, demonstrating liquidity in a sector where exits have historically been challenging.
What This Means for Founders
If you are building a company in recycling technology, circular supply chains, waste management infrastructure, or packaging innovation across India or Southeast Asia, Circulate Capital should be at the top of your fundraising list. The firm brings not just growth capital but direct introductions to the world's largest consumer goods companies, who are actively looking for supply chain partners to meet their sustainability commitments.
The sweet spot appears to be companies that have proven unit economics and are ready to scale, particularly those operating in plastic recycling, paper-based packaging alternatives, electronics material recovery, or waste logistics. Given the DFI presence in the LP base, Circulate Capital can also help portfolio companies access concessional capital and blended finance structures that are increasingly important in emerging market infrastructure.
Fund Momentum Take
This is one of the most compelling impact fund raises we have seen in 2026. The combination of returning corporate strategics, first-fund exits, and institutional European capital makes Circulate Capital Asia II a standout in a market where most impact funds struggle to demonstrate commercial returns.
The risk here is execution. Scaling recycling infrastructure across six Southeast Asian markets with varying regulatory regimes, waste collection systems, and end-market dynamics is operationally intense. But Circulate Capital has been doing this for years and the early exits suggest the model works.
Our bet: this fund reaches its $300 million hard cap well before final close, and we expect Fund III to be meaningfully larger. The circular economy is moving from niche to mainstream, and Circulate Capital is building the definitive platform in the fastest-growing markets on earth.
Frequently Asked Questions
What is Circulate Capital Asia II?
Circulate Capital Asia II is a $300 million target growth equity fund focused on scaling circular supply chains and recycling businesses across South and Southeast Asia. It achieved a $220 million first close in April 2026.
Who are the key investors in Circulate Capital Asia II?
The fund is backed by returning corporate LPs including Coca-Cola, Danone, Dow, and Procter & Gamble, along with DFIs such as British International Investment, IFC, and Proparco, plus institutional investors like EMCAF, Achmea, and Builders Vision.
What does Circulate Capital invest in?
The firm invests growth capital into companies building circular supply chain infrastructure, including plastic recycling, packaging innovation, electronics material recovery, and waste management technology across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia.
How did Circulate Capital Fund I perform?
Fund I raised $188 million and has already demonstrated partial exits from portfolio companies including Recykal, Lucro, and Srichakra Polyplast, which is uncommon for an emerging market impact fund at this stage.
What is the circular economy investment opportunity in Asia?
South and Southeast Asia generate a significant share of global plastic waste with limited recycling infrastructure. As EPR regulations expand and corporate net-zero commitments hit supply chain deadlines, demand for investable recycling and circular economy companies is accelerating rapidly.
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