Brookfield, Closed Loop launch US recycling business Circular Services

Brookfield has agreed to invest up to $700 million in Circular Services.

  • Circular Services is majority owned and managed by Closed Loop Partners
  • The Partnership Fund for New York City is also an investor
  • Brookfield Renewable is a renewable power affiliate of Brookfield Asset Management

Brookfield Renewable, an affiliate of Brookfield Asset Management, has agreed to invest up to $700 million in the newly formed Circular Services, a New York-based owner and operator of municipal recycling facilities across the US.

Circular Services is majority owned and managed by Closed Loop Partners, a US circular economy private equity firm. The Partnership Fund for New York City is also an investor in the company.

Circular Services owns and operates municipal recycling facilities that enable municipalities and businesses to eliminate the billions of dollars spent annually on landfill disposal costs by ensuring that valuable commodities are recycled and reused in domestic supply chains.

“The United States has operated with a very linear system for product manufacturing and waste management for the past 75 years, costing municipalities and business billions of dollars in landfill disposal and damaging our environment,” said Ron Gonen, founder and CEO of Closed Loop Partners, in a statement. “Circular Services is building circular economy infrastructure that will serve the financial and environmental interests of cities, consumers, businesses. We are excited to accelerate the transition to the circular economy, an economic system that invests in the continual use of commodities, reducing the reliance on natural resource extraction and landfills.”

“We cannot create a net zero economy without significantly scaling the infrastructure required for a circular economy,” said Natalie Adomait, managing partner and CIO of BGTF. “Brookfield has developed a blueprint for transition investing, combining a prudent and patient approach to long-term infrastructure development with the emerging business models that are critical to lowering carbon emissions while generating attractive risk adjusted returns for our investors. We look forward to working with Closed Loop Partners, clear leaders in the circular economy sector, to support Circular Services to scale up its impact across the United States.”

Toronto-based Brookfield Renewable is the flagship listed renewable power company of Brookfield, a leading global alternative asset manager with over $750 billion of assets under management.