he problem that Closed Loop Partners aimed to solve was the lack of a circular economy in the United States. The traditional linear economy is one in which goods are produced, used, and then discarded, often ending up in landfills. This model is unsustainable and contributes to pollution and climate change. Closed Loop Partners recognized the need for a more sustainable and circular approach to manufacturing, consumption, and waste management. The company strives to reduce, and eventually eliminate, the need for natural resource extraction and waste related to the manufacturing and use of products.

The fund, which helps keep more than 920,000 tons of recycled materials in play per year, invests in best-in-class circular business models fundamental to keeping plastics and packaging, food and organics, electronics and textiles out of landfills and within a circular system. Its investments tend to reduce waste and greenhouse gas emissions via materials innovation, advanced recycling technologies, supply chain optimization, and keeping materials in play.

The Closed Loop Leadership Fund’s first investment was acquiring Balcones Resources in October 2019. The Austin, Texas-based company handles commercial and residential recycling, among other services, in Texas and Arkansas at its three material recovery facilities (MRFs) in Austin, Dallas and Little Rock, Arkansas.

In January, the Leadership Fund led a consortium of investors to acquire the majority stake of Sims Municipal Recycling (SMR), which manages New York City’s municipal recycling contract, the largest in North America. SMR operates three recycling facilities in the New York metropolitan area and one facility in Florida.

At the time of the SMR acquisition, Closed Loop Partners said its investment was expected to further modernise circular economy infrastructure and service in the New York metro and expand the company into new markets.

Lego owner Kirkbi, funds and accounts managed by BlackRock, and Realdania’s investment arm are the newest investors in the fund. They join existing investors Nuveen; Nestlé; Microsoft; PepsiCo; Unilever; SK Geo Centric Co., Ltd.; donor advised funds and a series of global family offices in Closed Loop Partners’ buyout investment strategy focused on building circular economy platforms across sectors.

Closed Loop Partners now manages more than $475 million and has made over 60 investments since its inception, including circular textile innovator Evrnu and The Renewal Workshop, which repairs and prepares merchandise for resale. To date, Closed Loop Partners says its investments have kept 3.6 million tons of materials in circulation and avoided 6.8 million metric tons of greenhouse gas emissions.

Photo by Naja Bertolt Jensen on Unsplash