Circulate Capital Make Investment in Brazilian PET Recycling

Circulate Capital, a Singapore-based investment management firm, has made an undisclosed investment in eB Capital, the owner of Brazilian recyclers Global PET Reciclagem and Green PCR. This funding will facilitate the integration of both companies into a newly formed entity called Cirklo. With their combined capabilities, Cirklo will emerge as the largest independent recycler in Brazil, boasting the capacity to recycle over 4 billion PET bottles each year, according to Circulate Capital's announcement.

Cirklo plans to leverage this partnership to enhance its operations in Brazil’s Southeast and Northeast regions, where it already runs two plants located in São Paulo and Paraíba. The company is set on a mission to divert more than 1.3 million tonnes of plastic waste from landfills over the next decade, emphasizing its commitment to environmental sustainability.

Part of the capital for Cirklo’s expansion will derive from Circulate Capital’s $70 million initiative aimed at Latin America and the Caribbean, launched in 2023. This initiative enjoys backing from several prominent companies, including Chevron Phillips Chemical, Danone, Dow, Mondelez International, and Unilever.

Rob Kaplan, the founder and CEO of Circulate Capital, expressed enthusiasm about entering the Brazilian market, calling it "an exciting and important market for the region." He noted Cirklo's solid foundation and exceptional growth potential as key factors in their investment decision.

In 2022, Brazil consumed 4,327,468 tonnes of post-consumer plastic, of which 1,106,368 tonnes, or 25.6%, were mechanically recycled—marking a 2.2 percentage point increase from the previous year. The country produced over 1.1 million tonnes of post-consumer resin (PCR), with recycled PET (rPET) representing 38% of this output, predominantly from water and soft drink bottles.

Kaplan highlighted that this investment reflects Circulate Capital's strong commitment to fostering significant environmental and socio-economic improvements in Latin America through a circular economy approach. In addition to financial backing, Circulate Capital aims to support its portfolio companies with mentorship, technical assistance, and connections to a network of multinational corporate partners, all designed to ensure their long-term success. This marks Circulate Capital’s second investment in the Latin American region, following their July 2024 investment in Polyrec, a Colombian flexible plastics recycler.

eB Capital is a Brazilian alternative investment firm that excels at transforming the country’s structural challenges into substantial business opportunities. Its core strengths lie in investment expertise and operational excellence, providing a significant competitive edge in value creation and high returns. Leveraging its extensive knowledge of the Brazilian market, eB Capital has been a pioneer in Climate Private Equity investments, notably through its acquisition of Green PCR and Global PET, which together constitute the largest PET bottle recycling platform in Brazil. The firm's diverse portfolio also includes investments in Alloha Fibra, the leading independent fiber optic provider in the country; Loja do Mecânico, Latin America’s largest e-commerce platform for tools and machinery; and Blue Health, a prominent medical equipment rental company. Recently, eB Capital announced a strategic partnership with JHSF Capital to establish a real estate fund.