Closed Loop Partners, an investment firm based in New York, has released its "2020 Impact Report," highlighting milestones it has achieved in recent years.
According to its "2020 Impact Report," Closed Loop Partners’ asset management team has made 49 investments firmwide since it started in 2014, and its Center for the Circular Economy has formed a number of what it calls industry-leading collaborations.
In 2020, Closed Loop Partners says it welcomed a number of new investors, including Microsoft, and received additional commitments from existing investors, such as Nestlé, which has strengthened its ecosystem of corporate, institutional and family office investors that includes groups such as Nuveen, Unilever and others.
The investment firm reports that its Center for the Circular Economy accelerated its project-based work with the launch of the Consortium to Reinvent the Retail Bag in July 2020, with founding partners CVS Health, Target and Walmart, as well as the release of three research reports covering market drivers and the latest material innovations for a circular economy and the launch of an interactive data map to reveal plastic material flows in North America.
“[Amid] the challenges that all parts of the world shared in 2020, we continue to see four driving forces advance the circular economy,” writes Ron Gonen, CEO of Closed Loop Partners, in the report. “As we move into the next evolution of product design and manufacturing, the circular economy will provide us the opportunity to benefit from the innovations of past revolutions in manufacturing while also maintaining our personal, family and societal health. Transparency will be at the core of production, which will lead to the equitable practice of ensuring that manufacturers and brands will profit or lose based on their ability to generate holistic value––that includes their shareholders, customers and the communities in which they manufacture and sell products and services."
He continues, “Those that profited in the previous era will be consigned to their rightful place: the waste bin of history. Those that build value from circular business practices, aligned with their shareholders, customers and communities, will build lasting value in a world in which building a profitable business and preserving our health and environment are synonymous. In doing so, we can repudiate the gospel of waste and instead champion the ethic of circular consumption.”
According to the report, the firm’s Closed Loop Ventures Group, which invests in early-stage companies developing breakthrough solutions for the circular economy, made several advances in 2020. The group completed a second close on Closed Loop Venture Fund II. To date, the Closed Loop Venture Fund II has begun deploying capital and expects to build a diversified and high-performing portfolio to follow on the success of its Closed Loop Venture Fund I.
In 2020, the firm says its Closed Loop Infrastructure Fund has continued to provide finances for recycling and circular economy infrastructure. To date, the firm says this fund has made 11 municipal deals and 19 private deals. For instance, Closed Loop Infrastructure Fund provided a $3 million loan for the city of Phoenix to upgrade its North Gateway recycling facility to enable greater diversion of plastics from the landfill and improve the quality of baled paper. Closed Loop reports that it generated $400,000 in revenue in May 2020 and has resulted in an 18 percent increase in tons of residential recycled materials collected during 2020.
Additionally, the firm’s Closed Loop Leadership Fund acquired Texas-based Balcones Resources in October 2019. In 2020, Balcones also closed a bolt-on acquisition of Florida-based Single Stream Recyclers.
Closed Loop Partners offers more insights on projects and investments in its "2020 Impact Report."