Our investment
Description of the investment.
Description of the investment.
BII committed $20m to Circulate Capital Asia Fund II, enabling the Fund to achieve a first close of $220m, targeting $300m at final close. The Fund invests across South and South-East Asia with a unique strategy focused on the circular economy, particularly plastics waste recycling and adjacent sectors such as e-waste and paper.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Transition to sound management of all waste throughout its life cycle (SDG Target 12.4) and substantially reduce waste generated through prevention, reduction, recycling and reuse (SDG Target 12.5) Improved economic opportunities and reduced poverty including build the resilience of the poor and those in vulnerable situations and reduce vulnerability to climate-related and other economic, social, and environmental shocks and disasters (SDG Target 1.5). |
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How?
| Primary | Secondary |
|---|---|
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The Fund will invest in circular economy businesses in the plastics and e-waste space in South and South-East Asia. |
Catalytsing Markets: The success of the Fund's focused investment strategy will lower the overall risk perception of commercial investors associated with circular economy business model, eventually leading to the emergence of more circular economy focused fund managers in the region resulting in more integrated markets and an overall enhancement of circular economy ecosystem. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
Global |
Fund I track Record: 258,000 tonnes of plastic recovered and kept in circulation 325000 tonnes of Co2e avoided or reduced 1.6m tonnes of waste managed 798 new jobs created directly through investment and thousands of informal works supported indirectly. |
| Employees (permanent and contractors)and suppliers (waste collectors and segregators) |
South and South-East Asia |
Job creation of the fund is currently on track with meet the targets outlined during our Fund I investment. 1,798 new jobs created through investments made by the fund and thousands of informal workers supported indirectly. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Target for Fund II: Prevent 28-30 million tonnes of unmanaged waste (~50% plastic) ; avoid more than 50 million tonnes of CO2e emissions; expected job creation for this fund is >2k direct jobs; thousands of informal waste workers indirectly supported. |
Deep and long-term impact due to the increased market attractiveness of circular economy business models. |
Contribution/additionality
| Contribution/additionality |
|---|
|
There is limited appetite for large scale commercial investors to invest in circular economy businesses in the region especially those in the e-waste and recycling value chains due to the nascency of the sector and the high level of operational complexities/risks inherent in these business models. Fund I portfolio companies are mostly family run and raising external capital for the first time, a reflection of the nascent stage of the sector. Fund level Additionality: The target fund size is $300m. Of this, the fund has received firm commitments amounting to $38m. An additional $70m includes corporates ($60m) and family offices ($10m) who are existing investors and likely to invest again although firm commitments have not yet been received (DDs underway). The manager is confident to achieve a $ 100m-150m first close by June 2025. The fund is in early stages of engagement for the remaining amount. These engagements include 6 other DFIs. DFIs are preferred for their co-investment appetite and mission alignment. |
Risk
Evidence RiskWhile evidence on direct job creation impact can be adequately captured by the fund's portfolio companies, indirect economic opportunities created for informal waste collectors can only be estimated on a best effort basis. Execution RiskFund II is considerably larger than the first fund. Additionally Fund I will invest in adjacencies (paper, e-waste etc.) which would be a new segment for the Manager. While a larger fund size may pose a risk to timely deployment, the Manager's sourcing and deal execution capabilities have also been stregthened appropriately. The manager's prudent approach to adjacencies mitigates this risk to some extend. Alignment RiskWith diversified investors (corporates, HNIs, DFIs), each type of investor may have its own agenda, hence, LPs may become disruptive if the Fund is not delivering what is expected from it, or it could dilute the effective execution of the strategy. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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10 |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We agreed on an ESAP to update the ESMS, enhance the implementation of Responsible Sourcing Framework and conduct periodic monitoring of E&S performance, including contextual risks.
Environmental and social risk
High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D8460
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia, Southeast Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India, Thailand
- Investment policy :
- Catalyst
- Investment type :
- Fund
- Start date :
- December 2025
- Amount :
- $20m
- Currency of investment :
- USD
- Fund manager:
- Circulate Capital Management Pte. Ltd
- Domicile
:
The company or investment fund’s place of incorporation.
- Singapore
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
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Gender and climate finance facts
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- 2X gender finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
:
2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Leadership — Board of Directors/Investment Committee
2X threshold 30%: Investee already meets threshold - Leadership — Senior Management
2X threshold 40%: Investee already meets threshold - Employment
2X threshold 45%: Investee already meets threshold - Indirect/Portfolio
2X threshold 30%: Investee commits to meet threshold - Governance and Accountability
- Leadership — Board of Directors/Investment Committee
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Financial and Insurance Activities
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- Singapore
- Climate finance
