Edinburgh-based Circularity Capital LLP, a private equity firm, has raised 60 million pounds at a hard cap for its inaugural European growth fund. The fund will focus on investing in growth-stage European businesses “which are enabling the circular economy.” The fund’s investors include AXA Investment Managers, BNP Paribas Fortis and Henkel and Philips.
Edinburgh, 8th January 2019: Circularity Capital LLP, the specialist investment firm supporting growth stage European SMEs in the circular economy, has exceeded its £50m target fund size and held a final close at its £60m hard-cap.
The fund (Circularity European Growth Fund I LP), targets equity investments in growth stage European businesses which are enabling the circular economy. Circularity Capital leverages its team’s knowledge of and network in the circular economy to support the growth strategies of portfolio companies.
Circularity Capital’s investment strategy specifically addresses the increasing challenges faced by traditional linear, ‘take-make-dispose’ models of production and consumption. The firm seeks out businesses that can out-perform the market and their linear competitors by applying the circular economy framework.
Investors in the fund include global financial institutions, family offices and strategic corporate investors, including AXA Investment Managers, BNP Paribas Fortis, Henkel and Philips.
Ian Nolan, co-founding Partner at Circularity Capital, said:
“We firmly believe that our specialist sector focus and team structure is giving us an edge in identifying, sourcing and adding value to European growth SMEs. By using the circular economy as a lens to invest enables us to identify opportunities that drive financial value creation in parallel with measurable positive environmental and societal impact.
“We are convinced that there is a lot of potential in this area and will continue to work hard to increase our pipeline of investee companies and deliver value for our investors.”
Jonathan Dean, portfolio manager, at AXA Investment Managers, commented:
“Circularity Capital is a great fit with AXA IM’s impact investing strategy, which seeks institutional quality managers who have the ability to deliver financial returns alongside measurable positive environmental and social impact. Of particular interest was the manager’s expertise in the circular economy, which is rapidly emerging as a scalable impact theme. AXA IM was a cornerstone investor in Circularity Capital and we are delighted to see the fund close at its hard-cap.”
In October 2017, Circularity Capital announced the fund’s first investment in Winnow, a business providing a solution to dramatically reduce food waste. In July 2018, the team announced its second investment, this time in Germany-based Grover, a company offering flexible ‘access over ownership’ to technology products.
About Circularity Capital
Circularity Capital was founded in 2014 to deliver value for investors by supporting SME growth and innovation in the circular economy. Circularity Capital’s investment strategy specifically addresses the increasing challenges faced by traditional linear, ‘take-make-dispose’ models of production and consumption. Circularity Capital seeks out businesses that can out-perform the market and their linear competitors by applying the circular economy framework through enhanced resource productivity. Circularity Capital targets investments in profitable, fast growing European SMEs operating across the circular economy. www.circularitycapital.com
About AXA Investment Managers
AXA Investment Managers (AXA IM) are an active, long-term, global, multi-asset investor. AXA IM works with its clients to provide the solutions needed to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management. www.axa-im.com