New York, NY, March 11, 2025 – Today, Closed Loop Partners’ Center for the Circular Economy, in partnership with the U.S. Plastics Pact and its network of more than 120 businesses, retailers, not-for-profit organizations, government agencies and research institutions, released new insights to support the ongoing expansion of reuse in the U.S. The report, Getting Ready for Reuse in Retail: An Actionable Guide for Consumer Product Categories Most Likely to Succeed for Reuse in the U.S., identifies five high-priority product categories primed for near-term implementation of reusable packaging––including food, personal care, home care and more. This serves as a guide for businesses looking to pinpoint packaging formats best suited for reuse, to help meet single-use waste reduction goals.

The report is released at a time of increased scrutiny on the economic and environmental impact of single-use packaging in the U.S. Every day, 225,000 tons of single-use packaging are used in the U.S. Research and in-market tests over the last decade have shown the importance of reuse in recovering material value. However, implementing reuse requires significant shifts in operations and infrastructure, reverse logistics and consumer education. To advance a successful shift to reuse, it is critical to begin with categories that show the most immediate potential to meet intended environmental, operational and financial goals.

Retail stores––as central hubs of consumer interaction––are uniquely positioned to lead this transition to reuse. They can scale reuse systems that can transform the way Americans shop, while minimizing ecological impact. This study analyzed the 10 consumer product categories that account for over 90% of purchased packaged goods sold in U.S. grocery retail stores, and identified the top five retail categories best suited for near-term adoption of reuse:

• Prepared food packaging in retail, such as salad bars, snack bars and rotisserie chickens;
• Fresh produce containers, especially if pre-cut and packed locally and manually;
• Beverage bottles for localized supply chains like milk and dairy, leveraging legacy reusable packaging supply chains;
• Home care product bottles, such as liquid-based floor cleaners and detergents, which often are already in durable containers;
• Personal care product bottles, such as soaps and shampoos, especially if they can leverage similar return infrastructure as bottles from beverage or home care products.

The report delves into insights and opportunities within each category, including its potential to deliver environmental benefits, and achieve operational alignment and consumer acceptance.

“Reuse is at a pivotal point of development in the U.S. To get to the next phase of scale, it is critical to align concerted efforts around target categories,” said Kate Daly, Managing Partner and the Head of the Center for the Circular Economy at Closed Loop Partners. “With collaborative and coordinated work that reimagines our supply chains across retail sectors, we can transform the way everyday products are used and recovered, paving the way to a future where reuse is an everyday norm in the U.S.”

Since 2018, the Center for the Circular Economy has been testing diverse reuse solutions in retail stores and restaurants across the U.S., in partnership with many of the world’s most influential organizations. In 2023, the Center wrapped its largest returnable bag program and bring your own bag program, led by the Consortium to Reinvent the Retail Bag. In 2024, the Center launched the Petaluma Reusable Cup Project, led by the NextGen Consortium. This was the nation’s first citywide program to offer reusable to-go cups to every customer with no deposits or fees. Since then, significant progress has been made to inform the design of systems that make reuse an everyday reality.

The Center began its collaboration with the U.S. Plastics Pact in 2023, engaging the customer bases of 16 reuse innovators participating in the U.S. Plastics Pact’s Reuse Catalyst Program, and studying early adopter behavior to discover five key insights on how reuse systems can be positioned to create the most appeal for consumers.

“Collaboration across the value chain is essential to addressing the complex challenge of plastic waste, as no single brand or retailer can drive systemic change alone,” said Jonathan Quinn, CEO of the U.S. Plastics Pact. “This research is an important step in exploring reuse as one strategy to reduce plastic waste, providing insights that can help advance collective action and support a range of scalable solutions.”

While this report highlights five retail product categories that are most primed for a near-term transition to reuse, other retail categories present opportunities for the long term. However, before scaling to other categories, it is important to begin with those primed for the switch, and gather insights to inform further implementation.

In the coming year, the Center will continue scaling reuse solutions through its in-market activations and research to make reuse an everyday reality in the U.S. Furthermore, as a direct result of this report, the U.S. Plastics Pact will launch a precompetitive initiative to facilitate brands and retailers in shifting one product category to reuse in retail.

Learn more about Closed Loop Partners’ Center for the Circular Economy here.

Learn more about the U.S. Plastics Pact here.

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy is the innovation arm of Closed Loop Partners, a firm at the forefront of building the circular economy. The Center executes research and analytics, unites organizations to tackle complex material challenges and implements systemic change that advances the circular economy. The Center for the Circular Economy’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets.

Since 2018, the Center for the Circular Economy has worked with leading brands, retailers, reuse operators and public partners to innovate, test and scale diverse reusable packaging solutions in retail stores across the U.S.

Learn more about the Center for the Circular Economy at https://www.closedlooppartners.com/the-center/.

About the U.S. Plastics Pact

The U.S. Plastics Pact (U.S. Pact) brings together businesses, not-for-profit organizations (NGOs), government agencies, trade organizations, and research institutions that work together toward a common vision of a circular economy for plastics, as outlined by the Ellen MacArthur Foundation’s New Plastics Economy Initiative. This vision aims to ensure that plastics never become waste by eliminating the plastics we don’t need, innovating to ensure that the plastics we do need are reusable, recyclable, or compostable, and circulating all the plastic items we use to keep them in the economy and out of the environment.

The U.S. Pact’s latest strategic plan, Roadmap 2.0, includes a target dedicated solely to reuse. After publishing different resources, including Unpacking Customer Perspectives on Reusable Packaging, in partnership with the Center, and also the Design for Reuse Playbook and Reuse Policy Benchmark in the past year, the focus of this new target is to facilitate the enabling of reuse at different levels of the industry.

Learn more about the U.S. Plastics Pact at https://usplasticspact.org/.

Construction and demolition is now one of the biggest sources of waste in the world. By 2025, the annual volume of construction waste generated globally is expected to reach 2.2 billion tons.[1] In the U.S. alone, 600 million tons of construction and demolition debris were generated in 2018, more than twice the amount of municipal solid waste.[2]

The challenge lies not only in sheer volume, but in the complexity of construction materials. Non-concrete waste material––such as wood, drywall, asphalt shingles and tile––often have plasticizers (chemicals that make materials more flexible and easier to mold), trace or heavy metals and polychlorinated compounds in them, making it hard to recover those materials for their next lives. Furthermore, when those materials end up in landfills, they can leach those toxic chemicals into arable land and waterways––where they leave lasting environmental consequences.

Mycocycle, a biotechnology startup, found a solution to help address this complex challenge, inspired by fungi. Their patent-pending process improves the natural functions of fungi to transform construction waste into low-carbon raw materials for the built environment. Within a matter of weeks, their technology can turn organic waste from the built environment––such as carpet fiber and tires––into MycoFIBER©, MycoFILL© and MycoFOAM©, all raw materials that can replace virgin-derived materials.

Closed Loop Partners’ Ventures Group saw a key opportunity in Mycocycle’s technology, a solution that reimagined how materials can be recovered and kept in circulation. This aligned with Closed Loop Ventures Group’s focus on deploying early-stage funding to breakthrough circular solutions for foundational materials that underpin and influence vital sectors of the economy––from water and minerals to polymers and organics. Mycocycle’s solution to recover organic waste in the built environment unlocks new possibilities for circularity across a major industry.

Last year, Closed Loop Ventures Group led Mycocycle’s Series Seed extension to help address the growing challenge of construction waste––with participation from US Venture, the Illinois Department of Commerce and Economic Opportunity INVENT fund, and existing investor TELUS Pollinator Fund for Good.

Since then, over the past 10 months, the Mycocycle team has continued to impress––making significant progress on processing cost reductions and signing exclusivity agreements with major multinational companies for certain product categories. They are demonstrating that not only are their products not harboring the toxic chemicals of their inputs, but they are exhibiting significant performance improvements––in strength, elasticity and more––from the virgin-derived construction products they’re replacing.

Today, the team continues to operate in the south of Chicago––in a space nearly five times the size of the one they were working in over a year ago. And they are filling orders, using mycelium to transform organic waste from the built world into reusable, bio-based ingredients. Those ingredients are going into non-recoverable plastics, replacing food-grade fillers like corn stover, for which higher and better uses exist in biomanufacturing. They are also going into turf applications, replacing materials that have been outlawed in some geographies because of excessive microplastic shedding that pollutes airways and waterways. With products that are both cost competitive against the incumbents and gross margin accretive for the business, Mycocycle is on a path to scale that has already unlocked significant reductions in their processing costs––and there is still room for growth.

A big part of how Closed Loop Ventures Group invests is by identifying founders and leadership teams who balance a “no quitting” attitude with the detail orientation and the project management expertise to move the needle on tough challenges. Joanne Rodriguez, Founder & CEO of Mycocycle, and Colin Litow, COO of Mycocycle, exemplify these characteristics, creating a strong foundation for their team through its next phase of growth.

Today’s reality is that the built environment is still in the early stages of bringing circular principles to bear in the lion’s share of applications. Asynchronous design and demolition processes make it challenging to identify reuse and next life opportunities for materials, and the lifecycle of a building is long enough that it’s rare for an organization to think about disassembly and deconstruction at the time of design. Even if they were, less than 2% of the building stock is new each year.[3] Much more focus is needed on managing renovation and retrofit processes––not just tracking, but on finding new homes for the materials once they’re removed.

Mycocycle is a core part of the solution, as are the companies exploring opportunities to maintain or reduce costs while using recovered materials as inputs into their products. Closed Loop Partners’ Ventures Group is excited to continue to work with the Mycocycle team and those across the manufactured world as they lay the groundwork for a more circular future for the built environment.

About Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough circular solutions for foundational materials that underpin and significantly influence a wide array of vital sectors of the economy. These materials include organics, minerals, polymers and water. Closed Loop Ventures Group partners with founders and companies who rethink how products are designed, manufactured, consumed and recovered, with the shared vision of reimagining supply chains and eliminating waste. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Ventures Group and apply for funding, visit www.closedlooppartners.com.

 About Mycocycle

Mycocycle, Inc. is a nature-inspired and woman-owned biotechnology startup that leverages fungi to transform industrial waste into reusable materials. Founded in 2018, the company drives circularity in the construction supply chain and diverts waste from landfills. Mycocycle blends lab-cultivated fungi with debris at the point of waste generation to transform waste into new raw materials. To learn more, visit http://www.mycocycle.com.

[1] Source: Construction Dive.

[2] Source: Environmental Protection Agency.

[3] Source: https://www.usgbc.org/articles/existing-buildings-99

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

February 26, 2025, New York, NY –– Today, the NextGen Consortium, led by Closed Loop Partners’ Center for the Circular Economy, with partners including Starbucks, The Coca-Cola Company, PepsiCo, Yum! Brands and other global businesses released groundbreaking results from the Petaluma Reusable Cup Project, the first initiative to catalyze reuse across an entire U.S. city.

The report, Making Reuse an Everyday Reality: Insights and Impact from the Petaluma Reusable Cup Project, reveals a major milestone for the reuse movement: enough of the project’s purple cups were successfully returned for the reuse system to produce environmental benefits when compared with a single-use alternative. Delivering a positive environmental outcome on this scale is particularly significant because the program was designed to automatically serve every customer ordering a to-go beverage with a reusable cup, across a citywide network.

 This unprecedented collaboration in Petaluma set out to address accessibility and inclusivity challenges that typically restrict the ability of reuse programs to deliver impact. Throughout the duration of the three-month project, 30 businesses in Petaluma––from national brands to local restaurants––switched out single-use cups for reusable alternatives in unison, at no cost to the customer. Local consumers responded, returning cups from day one, with returns climbing rapidly in the first few weeks and over 220,000 cups returned throughout the program.

The Petaluma Reusable Cup Project was launched at a critical time, amidst growing regulatory, consumer and climate pressures on single-use packaging waste. Advancing reuse has been a focus for the NextGen Consortium, as identifying alternatives to single-use packaging becomes a top priority for brands and cities seeking to reduce waste. In the U.S., 50 billion single-use cups are purchased and disposed of each year, and many of these materials are wasted in landfills.

“The best part was that this project got the whole community involved. Deep public-private partnerships, including commerce and non-profits collaborating, demonstrated that it is possible to launch an inclusive and accessible reuse system that supported our residents. People got into it, and it was the talk of the town,” said Mayor Kevin McDonnell of the City of Petaluma. “We are thrilled to be a part of this important work to scale reuse systems that keep our communities clean and support positive environmental outcomes.”

“The Petaluma Reusable Cup Project demonstrated an ambitious, innovative vision of reuse as an everyday reality, paving the way for the Consortium to scale reuse in California and other markets,” said Carolina Lobel, Senior Director at the Center for the Circular Economy at Closed Loop Partners. “Together, we can scale the solutions that have been proven to work and solve the current open challenges identified in the Petaluma project.”

The Petaluma Reusable Cup Project builds on over half a decade of work to advance reuse by Closed Loop Partners’ Center for the Circular Economy. While there is still work ahead to increase return rates, given variability across participating businesses, the groundbreaking results achieved mark an important milestone in catalyzing and scaling reuse systems. The Consortium invites brands, retailers, cities and innovators from all sectors to join upcoming reuse activations in cities across the U.S.––making critical strides to building a waste-free world.

To learn more about the Petaluma Reusable Cup Project, visit https://returnmycup.com/.

About the NextGen Consortium

The NextGen Consortium is a multi-year consortium that addresses single-use foodservice packaging waste by advancing the design, commercialization and recovery of foodservice packaging alternatives. The NextGen Consortium is managed by Closed Loop Partners’ Center for the Circular Economy. Starbucks and McDonald’s are the founding partners of the Consortium, with The Coca-Cola Company and PepsiCo as sector lead partners. Peet’s Coffee, with its parent company JDE Peet’s, Wendy’s, Yum! Brands, Delta Air Lines and Toast are supporting partners. World Wildlife Fund (WWF) is the environmental advisory partner. Learn more at nextgenconsortium.com.

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy is the innovation arm of Closed Loop Partners, a firm at the forefront of building the circular economy. The Center executes research and analytics, unites organizations to tackle complex material challenges and implements systemic change that advances the circular economy. The Center for the Circular Economy’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets. Learn more about the Center for the Circular Economy at closedlooppartners.com/the-center/

February 20, 2025, New York, NY – Today, Closed Loop Partners’ portfolio company, Sage Sustainable Electronics (“Sage”), announces their acquisition of IT Asset Disposition (ITAD) company, Cascade Asset Management (“Cascade”). Cascade is a longstanding leader in the IT Asset Disposition (ITAD) industry, providing hardware asset lifecycle management, reuse, refurbishment and disposition services. Following its acquisition of Cascade, Sage Sustainable Electronics becomes one of the largest pure ITAD service providers in the United States.

The acquisition takes place amidst increasing demand to bring valuable electronics––and their critical mineral components––back into circulation for reuse in domestic supply chains in the U.S. The acquisition accelerates Sage’s path to becoming the leading platform within the ITAD industry, servicing major corporations through IT asset recovery and lifecycle extension. The acquisition was completed through Closed Loop Partners’ buyout private equity group focused on buying and building platforms to advance a circular economy.

Closed Loop Partners first joined forces with Sage in 2023 as a majority shareholder in the company, aiming to accelerate the company’s growth and strengthen its position as a leading provider of sustainable ITAD services in North America. Since then, Sage has been at the forefront of advancing a circular economy for electronics. The company provides secure reuse and recovery solutions to businesses seeking to sustainably dispose of their IT assets.

Today, Sage faces an evolving IT industry. Responding to pressures for improved materials recovery and cost efficiency, device lifecycles are being extended, with an average refresh cycle by IT departments of two years for smart phones, four years for laptops and five years for printers. Amidst increasing demand for services to extend the lifecycle of electronic devices, Sage completed its acquisition of Cascade, bolstering capabilities including de-manufacturing and reuse, and increasing reusability yield.

“Cascade is among the most respected IT Asset Disposition companies in the industry, bringing over two decades of experience and a comprehensive suite of electronics recovery solutions that complement Sage’s growing platform,” said Bob Houghton, CEO of Sage Sustainable Electronics. “This marks an important milestone for Sage, as we accelerate progress toward increased market reach and scaled impact. We are thrilled to join forces with Cascade, an experienced operator in the industry, expanding our platform to keep more electronics in circulation across industries.”

Founded in 1999, Cascade brings over 25 years of experience as an industry-leading IT Asset Disposition company, headquartered in Madison, Wisconsin. The company’s services include reuse, refurbishment, de-manufacturing, recycling and resale, providing additional scale, capabilities and human resources to Sage’s platform. Cascade brings in a strong customer base in the healthcare, manufacturing and technology sectors, creating opportunities to advance circularity across more industries. With facilities in Wisconsin, Indiana and Florida, Cascade further expands Sage’s national footprint, deepening exposure in the Midwest and providing new exposure in the Southeast.

“We are proud to join forces with Sage Sustainable Electronics, growing their platform as one of the largest pure IT Asset Disposition service providers in the U.S.,” said Neil Peters-Michaud, Founder & CEO of Cascade. “Our aligned mission, complementary services and geographic footprint accelerate shared goals to transform the ITAD industry and meet growing demand for electronics recovery across industries. Together, we can reach more markets, laying the groundwork for greater impact.”

Closed Loop Partners’ buyout private equity group employs a buy-and-build strategy to partner with companies and scale platforms and enabling technologies across plastics & packaging, organics, circular technology, the built environment and textiles. The group aims to develop, accelerate and modernize circular supply chains and recycling & reuse infrastructure. The investment to support Sage’s acquisition of Cascade builds on Closed Loop Partners’ robust portfolio of investments to advance circularity for electronics––one of the firm’s key focus areas, alongside packaging, textiles, organics and more. Closed Loop Partners’ broader portfolio of investments in electronics circularity spans IT asset management and disposition, disassembly and remanufacturing, collection and reuse, and end-of-life electronics recycling.

“Closed Loop Partners is proud to back Sage Sustainable Electronics’ acquisition of Cascade Asset Management. Cascade’s experience and reach strengthens Sage’s position as a leading IT Asset Disposition provider, with extensive capabilities to serve diverse locations and industries––from healthcare, to technology, to manufacturing,” said Jackson Pei, Managing Director and Co-head of Closed Loop Partners’ buyout private equity group. “We look forward to supporting Sage’s continued expansion to bring more electronics back in circulation, keeping them within domestic supply chains and out of landfills.”

Following the acquisition, Sage will continue to grow its services and geographic footprint, positioning the company for wider reach.

To learn more about Closed Loop Partners, please visit here.

To learn more about Sage Sustainable Electronics, please visit here.

To learn more about Cascade Asset Management, please visit here.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s lower mid-market buyout private equity investment strategy, the Closed Loop Leadership Group, seeks to make control investments in cash flowing businesses and enabling technologies to scale platforms that are fundamental to the circular economy. The Closed Loop Leadership Group is focused on areas including plastics & packaging, electronics, organics, the built environment, healthcare and the energy transition. With a buy-and-build strategy, the team brings active capital solutions, operating experience, circularity expertise and the strategic network of the Closed Loop Partners ecosystem to capture opportunities for growth and accelerate the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Leadership Group, visit www.closedlooppartners.com.

About Sage Sustainable Electronics

Sage Sustainable Electronics, based in Columbus, Ohio is a leading provider of IT Asset Disposition (ITAD) services, safely and securely refurbishing used IT assets for another life. Co-founded in 2014 by CEO Bob Houghton, Sage’s platform has expanded to include four national repurposing facilities across three states, processing nearly one million assets annually. Sage extends the useful life and increases the recovery value of IT assets for its clients, which include Fortune 100 companies across various industries, including finance, healthcare and defense.

About Cascade Asset Management

Cascade Asset Management, based in Madison, Wisconsin, has provided secure and environmentally responsible IT Asset Disposition (ITAD) services since 1999. Founded by Neil and Jessica Peters-Michaud, the company has since grown to operate full-scale refurbishment and demanufacturing facilities in Madison, Indianapolis, and Orlando. Cascade leverages its fleet of vehicles and field service professionals to offer an industry-leading secure chain of custody to transport assets efficiently from client locations to its certified processing facilities. The company has processed more than 115 million pounds of electronics from businesses, institutions, and individuals across the U.S.

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

NEW YORK, Feb. 19, 2025 — Today, Closed Loop Partners’ Center for the Circular Economy unveils major pioneering findings in a new report on small-format plastic packaging recovery. The report builds on over two years of market research and comprehensive recycling tests in partnership with Maybelline New York and its parent company, L’Oréal Groupe, bolstered by the support of additional partners Kraft Heinz, P&G and Target.

The findings reveal a viable pathway to recover tens of thousands of tons of valuable small materials––including plastics like polypropylene––from materials recovery facilities (MRFs) and glass recycling plants across the U.S. With the right equipment upgrades and reconfigurations, significant volumes of these materials can be successfully recycled instead of being lost to waste. For example, upgrading the glass screen—a type of material sorting equipment—at a MRF resulted in a 67% relative reduction in mid-to-large-sized “small” plastics contaminating the glass stream. Materials that would have otherwise been considered contaminants and discarded at the glass recycling plant are now effectively sorted and directed into appropriate bales for sale in the recycled materials market. These promising findings demonstrate the positive economic and environmental impact of recovering small-format packaging, catalyzing the launch of a new industry collaboration managed by Closed Loop Partners’ Center for the Circular Economy: the Consortium to Recover Small-Format Packaging.

Each year, consumers buy billions of products—beauty items, medications and food—packaged in small-format plastic that is difficult to recycle due to its size and other factors. Currently, most of this is discarded into trash bins, ending up in landfills or incinerators. The small fraction that does end up at recycling facilities often slips through sorting equipment due to its size, contaminating the glass stream and ultimately being sent to landfills. As brands work to meet waste reduction goals and achieve compliance with Extended Producer Responsibility legislation, the opportunity to capture previously unrecovered small-format plastic packaging can have a significant positive impact.

The Center for the Circular Economy conducted its research in collaboration with Circular Services, a Closed Loop Partners company. Circular Services operates over 20 MRFs across the U.S. and manages municipal contracts in major and rapidly growing cities, including New York City, Austin, San Antonio and Phoenix. With support from partners Maybelline New York and its parent company, L’Oréal Groupe, Kraft Heinz, P&G and Target, the Center conducted an extensive, in-field process to identify solutions for small-format packaging recovery. This included evaluating glass stream contamination at more than half a dozen MRFs across the U.S. The Center collected samples from two MRFs’ glass streams and one glass recycling plant’s residue streams; trialed equipment configurations to sort plastics from these streams; sent samples to reclaimers to test their processability and market value; and iterated this process multiple times.

The report highlights five key insights critical to the recovery of small-format packaging:

• Many small format plastic materials hold significant market value
• Logistical solutions already exist to handle them
• Current technologies can be adapted to effectively recover portions of them at MRFs and glass recycling plants
• Market demand for these materials is strong—especially from mechanical recyclers
• Targeted investment at recycling facilities is essential to build a compelling, scalable business case to recover smaller materials

These findings can apply to recycling facilities across the country, meaning tens of thousands of tons of plastics could be recovered annually, avoiding landfill and generating market value.

The Center for the Circular Economy’s new findings lay the necessary groundwork and provide the rigorous diligence needed for the creation of a new industry consortium, the Consortium for Small-Format Packaging Recovery. The Consortium is focused on advancing the recovery of small-format packaging by testing the Center’s latest findings in real-world scenarios across the U.S. The Center is inviting research-phase partners to join, while also expanding participation to brands across various sectors. This is a cross-industry challenge, as small-format packaging is used in beauty, pharmacy, foodservice, beverage, retail and beyond.

One next step to build upon the findings is investment in equipment and infrastructure upgrades for rigid small plastics recovery in the field. The Center for the Circular Economy anticipates a quantifiable tonnage of materials diverted from landfill, carbon emissions avoided and post-consumer recycled content generated. The Consortium will lead the establishment and engagement of a robust value chain for recovery of small materials, from recyclers, reclaimers, policymakers and more.

If your company is part of the small-format packaging value chain—whether as a manufacturer, brand owner or other stakeholder—and is interested in joining the Consortium to Recover Small-Format Packaging to advance collaboration, recycling infrastructure investments and policy for nationwide recovery, contact the Center for the Circular Economy here.

“We’re eager to put our findings to the test and, through the Consortium to Recover Small-Format Packaging, deploy equipment and infrastructure upgrades to drive real-world proof-of-concepts in the field. It’s critical that we advance solutions to recover valuable small-format materials, like polypropylene, that otherwise typically end up in landfill. This is inherently a cross-industry challenge, as small-format packaging is used in beauty, pharmacy, foodservice, beverage, retail and beyond. We’re inviting our research-phase partners and brands across various sectors to join the Consortium and help address an urgent waste challenge.” Kate Daly, Managing Partner, Closed Loop Partners’ Center for the Circular Economy

“L’Oréal is excited to partner with Closed Loop Partners to develop innovative solutions for recovering packaging materials, reducing waste and creating opportunities in a fragmented national recycling infrastructure. Closed Loop Partners’ Center for the Circular Economy provides practical and scalable approaches for recovering small-format plastics that end up in landfills. We believe scaling these innovations will improve the recyclability of plastic and create a viable end-market for our materials.” Marissa Pagnani McGowan – Chief Sustainability Officer, North America for L’Oréal Groupe

“As the number one makeup brand in the world, we have a responsibility to create the most sustainable makeup life cycle possible. Most makeup packaging is too small to be recycled, it literally falls through the cracks at recycling facilities. That’s why it was so important to partner with Closed Loop Partners’ Center for Circular Economy to pioneer solutions for small-format recycling and to help us and the beauty industry accelerate our sustainable transformation. We look forward to making progress together.” Trisha Ayyagari, Global Brand President, Maybelline New York

“At Kraft Heinz, we know collaboration is the key to unlocking solutions for the future of packaging. We are proud to partner with Closed Loop Partners on this groundbreaking research to advance packaging solutions, improve end-of-life recovery and enhance critical infrastructure. By working together, we can drive meaningful change and create a more sustainable future for food.” Linda Roman, Director of Packaging R&D and North America R&D Fellow, Kraft Heinz

About Closed Loop Partners’ Center for the Circular Economy

The Center for the Circular Economy at Closed Loop Partners is a trusted innovation and research hub, partnering with the world’s most influential organizations to solve their toughest material challenges.

As part of Closed Loop Partners’ platform, the Center identifies solutions, tests them in real-world settings and scales what works—transforming bold ideas into actionable, scalable strategies. Over the past seven years, the Center has led groundbreaking projects that reshape industries and redefine sustainability.

Learn more about the Center at closedlooppartners.com/thecenter.

New York, NY, February 10, 2025 – Closed Loop Partners today announced that mission-aligned investor, Capricorn Investment Group (“Capricorn”) made a growth investment in its asset management business, Closed Loop Capital Management. Capricorn joins existing shareholders, JS Capital, Schusterman Family Investments and majority owner, Closed Loop Partners Founder & CEO, Ron Gonen. The investment strengthens Closed Loop Capital Management’s position as a leading private investment firm dedicated to accelerating the transition to a circular economy across private equity, venture capital and catalytic private credit strategies.

Closed Loop Partners was founded in 2014 to accelerate the transition to a circular economy. The firm’s three businesses include its investment group, Closed Loop Capital Management, led by Tazia Smith; its innovation center, the Center for the Circular Economy, led by Kate Daly; and Circular Services, one of the largest private recycling and circular economy services providers in the U.S., led by Jessica Long.

The original investors in Closed Loop Partners’ funds are many of the world’s largest global corporations. Today, Closed Loop Capital Management manages capital on behalf of corporations, financial institutions, foundation endowments and family offices. Over the past decade, it has made 85 investments in emerging circular solutions across plastics & packaging, food & agriculture, electronics, the built environment, textiles & apparel and more. Its portfolio has kept over 6 million tons of materials out of landfills, maintaining their circulation in domestic supply chains, and avoided over 17.5 million metric tons of greenhouse gas emissions to date.

Capricorn’s strategic investment into Closed Loop Capital Management marks a significant milestone and market signal for scaling the circular economy, which drives security of natural resources and optimization of supply chains through waste mitigation, from product design to advanced remanufacturing. The partnership is grounded in Closed Loop Partners’ and Capricorn’s shared view of the critical need and opportunity for private investment firms with deep expertise in building solutions enabling a more sustainable and resilient global economy. Capricorn’s investment will provide growth capital to enhance Closed Loop Capital Management’s infrastructure and resources as the investment firm continues to execute, and drive value and positive impact on behalf of its corporate, institutional and family office partners.

One of the earliest and most respected climate-focused investment firms in the world, Capricorn manages $12 billion in assets for investors who strive for extraordinary investment results by leveraging market forces to accelerate large-scale environmental and social impact. The investment in Closed Loop Capital Management is part of Capricorn’s continued efforts to provide long-term capital to support the growth of leading asset management firms in the sustainability and climate space.

“Closed Loop Partners has built an impressive platform dedicated to the circular economy. Through its investment group, Closed Loop Capital Management, the team has considerable expertise building and profitably investing in businesses which advance environmental and economic resiliency. We believe their exceptional leadership and strong existing partnerships will provide an excellent foundation for scaling mission-aligned investment strategies which will continue to align capitalism with environmental and social impact,” said Capricorn Partner, William Orum. “We are excited to partner with Closed Loop Partners and look forward to working with their team as they further expand the asset management business over the coming years.”

“Capricorn Investment Group’s partnership with Closed Loop Capital Management signals continued, market-driven tailwinds behind the circular economy. We are proud to join forces with a leading investor driving sustainable change,” said Tazia Smith, Managing Partner and CEO of Closed Loop Capital Management. “Together, we are positioned to expand our proven ability to identify and scale innovations, business models and infrastructure that perpetuate circularity with resilient profitability and net-positive social and environmental outcomes.”

“Capricorn Investment Group is one of the original leaders in sustainable investing. They have built an impressive track record investing in leading fund managers who produce strong financial returns with tangible impact,” said Ron Gonen, Founder & CEO of Closed Loop Partners. “Capricorn’s partnership with Closed Loop Capital Management demonstrates the proven value and investment opportunity in the transition towards a waste-free world.”

Dentons was legal counsel to Closed Loop Partners. Sidley LLP served as legal advisor to Capricorn SIF.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change. Closed Loop Capital Management is the firm’s investment group, managing venture capital, lower mid-market buyout private equity and catalytic private credit investment strategies on behalf of global corporations, financial institutions and family offices. To date, Closed Loop Capital Management has made 85 investments ranging from emerging innovations to established businesses.

Closed Loop Builders is the firm’s operating group, incubating, building and scaling circular economy infrastructure and services. The Center for the Circular Economy is the firm’s innovation center, uniting organizations to tackle complex material challenges and implementing systemic change that advances the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp. Learn more at www.closedlooppartners.com.

About Capricorn Investment Group

Capricorn Investment Group is a leading mission-aligned investment firm managing $12 billion for families, foundations, and institutional investors. Capricorn leverages over 20 years of sustainable investing experience to deliver comprehensive Outsourced CIO services and innovative fund solutions to its global client base. Their Sustainable Investors Fund (SIF) is a private equity partnership whose investment objective is to create significant value through GP strategic capital investments in asset managers which incorporate sustainability as a key driver of investment returns.

The firm was born from a belief that sustainable investment practices can enhance risk-adjusted returns. Underlying this investment approach is a deep desire to demonstrate the huge investment potential that resides in breakthrough commercial solutions to the world’s most pressing problems. More information is available at www.capricornllc.com

Contacts

Closed Loop Partners
Bea Miñana
[email protected]

Capricorn Investment Group
Julia Mattox

[email protected]

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision.

Executive endorsements of Closed Loop Capital Management are for illustrative purposes, designed to attract business development contacts, and should not be construed as a client or investor testimonial of Closed Loop Capital Management’s investment advisory services. All such endorsements are from current or former portfolio company leadership about Closed Loop Capital Management’s ability to provide services to their companies. Closed Loop Capital Management has not, directly or indirectly, paid any compensation to such individuals for their endorsements.

The Case Studies described on the Website are included as representative transactions to demonstrate assets to which Closed Loop Capital Management provides capital, however, are not representative of all Closed Loop Capital Management investments and are not necessarily reflective of overall results of any of Closed Loop Capital Management’s businesses. Investments in other businesses may have materially different results. Not all Closed Loop Capital Management investments had or will have similar characteristics or experiences as those included herein.

Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

Much has been written about why life cycle assessments (LCAs) matter––their role in helping companies choose between different materials and packaging formats, their ability to measure the climate impact of business decisions, even their ability to help evaluate environmental risks of new solutions. 

But the reality is, LCAs can become complex very quickly. They usually involve a multitude of assumptions and data––from the origins of materials (cradle) to how they are transported through complicated supply chains, all the way to how they are disposed of (grave) or recovered via reuse or recycling.  

Yet if navigated thoughtfully, LCAs are packed with a wealth of information for creating data-backed packaging strategies that contribute to waste reduction goals and advance positive climate impacts.  

Here, we share 8 tips to help brands navigate the most critical aspects of any packaging emissions analysis: 

1. Focus on the biggest drivers of impact: New materials often account for the majority of emissions. Keeping packaging in circulation for longer––thus avoiding the need for new materials––is a key driver to reduce the climate impact of packaging. For reusable containers, the return rate, and the associated number of uses tied to it, is the most critical factor to drive down packaging emissions. When one LCA assumes that a reusable container is used on average 100 times (99% return rate) and another assumes 2 times (50% return rate), emission outcomes will vary widely. 
2. Put some weight behind the weight of your packaging: Lightweighting is generally the lowest hanging fruit opportunity for companies to reduce their packaging impact. But there’s only so much a product can be lightweighted before this impacts its performance and recyclability. Today, new lightweighting innovations enable durability while not compromising on high packaging quality, functionality and recyclability, opening more opportunities for reduced emissions. 
3. Account for all distances of transportation, including transport to landfill: In the U.S., virgin materials usually travel hundreds, if not thousands, of miles from production sites to their point of sale. Materials that end up in landfill also travel hundreds of miles from point of consumption to their grave (over 500 miles on average in the case of New York City), but distances traveled to landfill are often overlooked in LCA analyses.  
4. Give thought to the food waste that packaging may carry to landfills: Food waste in food packaging decays over time and, in the absence of oxygen, creates methane in landfills. Methane, a greenhouse gas, is 28 times more potent than CO2 in trapping atmospheric heat. Any packaging system, such as reusable or compostable options, that serve as a vehicle to properly dispose of (i.e., compost) food scraps, and keep them out of landfills, has significantly reduced emissions compared to current single-use packaging systems. 
5. Consider the difference between recycling and use of recycled content: The GHG Protocol has two methods for calculating recycling emissions. One method benefits packaging that uses recycled content; the other benefits products that are recycled at end-of-life. Since we need both things to be true to create a truly circular economy, focus on designing packaging that meets both criteria. For LCAs, consider using an average of both calculations. 
6. Don’t discount impact through incineration: The emissions impact of incineration is left out of many LCAs. In today’s carbon accounting protocols, incineration emissions (i.e., the energy produced from incineration) are accounted for in their next product, thus burning packaging after use does not add to the emissions of that piece of packaging. While this can seem to provide a discount towards packaging emissions, this is not a circular strategy as valuable packaging materials are lost instead of kept in circulation. 
7. Assess the implication of clean grids: Switching to clean energy is an immediate opportunity to reduce packaging emissions. However, when analyzing the impact of clean grids, remember to apply the benefits of lower manufacturing and transportation emissions to incumbent materials and processes as well.   
8. Remember that infrastructure assets do not impact emissions directly: Emissions associated with bins, machines and other capital infrastructure are not typically included in packaging LCAs, based on the GHG Protocol. Incumbent solutions like landfilling have infrastructure associated with them as well, and are not included in LCAs, so new infrastructure for future solutions should be held to the same standard as existing infrastructure.

LCAs are just one datapoint within the larger equation 

When implementing any packaging solution, emissions are just one part of the equation—packaging decisions affect our planet beyond their climate impact. Waste generated, water usage, biodiversity loss, social and human health risks are all critical aspects to be assessed for a responsible and sustainable circular packaging strategy. 

We hope these LCA tips help packaging designers and decision makers make more holistic analyses, leading to greener packaging innovation.

Get in touch with Closed Loop Partners’ Center for the Circular Economy at [email protected] to dive deeper into packaging emissions and to collaborate on designing, testing and scaling circular packaging solutions.  

Findings are based on the Center for the Circular Economy’s proprietary LCA model. A special thank you to our partners at Columbia University for their contributions to this work. 

Colorado, United States, January 28 2025 –– LAIIER, an innovative liquid leak detection solution provider for commercial and industrial buildings, announced today that it has raised US$4M in seed extension funding. Closed Loop Partners’ Ventures Group, the venture capital arm of the circular economy-focused firm, led the financing round, with participation from six other funds.

Existing investors Burnt Island Ventures and Mundi Ventures participated in the round, and were joined by new investors Bonaventure Capital, Carlisle Ventures, One Small Planet, and Virta Ventures.

 LAIIER focuses on solving the $19B+ annual problem of damage and downtime caused by liquid leaks in commercial buildings and industrial equipment. Traditional leak detection methods are inefficient, relying on manual inspections and resulting in slow response times of over 80 hours. This leads to significant financial losses, with properties experiencing between one and four large leak events annually. The severity of these leaks can vary widely, with costs escalating rapidly for severe cases and risks of expensive insurance claims and water loss increasing.

As real estate owner operators continue to seek more reliable leak detection that has a positive impact on both financial and environmental metrics, LAIIER’s technology offers scale, precision, and ROI that few other solutions on the market can match.

First launched in 2022, the company’s flagship water leak detection product, Severn WLD™, is currently protecting assets in a range of commercial and industrial buildings in North America and Europe, including those of Fortune 500 and FTSE 100 companies. The technology detects as little as two drops of water, offers flexible installation, precise sensitivity control, and utilizes long-range, low-power communication.

These advanced sensors, and the company’s cloud platform, LAIIER Cloud™, enable early detection of leaks and real-time monitoring, contributing to substantial water savings by alerting customers to issues before they escalate. By identifying leaks in their initial stages, LAIIER’s technology plays a crucial role in preventing extensive water damage to buildings and equipment, and helps mitigate the loss of water––an increasingly scarce and valuable commodity.

“This funding round represents a pivotal moment for LAIIER as we continue to accelerate our growth across North America and Europe,” said Matt Johnson, CEO & Co-founder of LAIIER. “Closed Loop Partners’ Ventures Group is renowned for its leadership in sustainable innovation and its deep expertise in scaling transformative technologies. Their prestigious reputation and proven track record in advancing successful businesses align perfectly with our mission to redefine leak detection in industrial and commercial markets. We are honored to have their support and partnership.”

The primary focus of the funding is to support the acceleration of LAIIER’s commercial growth globally, with a particular focus on North American expansion. The funds will also support the company’s continued investment in the development of its patented liquid leak detection technologies––both the commercially available water leak detection product, Severn WLD™; and the development of further liquid leak detection products for specific commercial and industrial applications.

“In an escalating climate crisis marked by increasing water scarcity and frequency of extreme weather events––from fires to flooding––solutions like LAIIER’s drive awareness and action around our relationship with water and industrial lubricants, and represent a crucial step toward less damage and a better experience with insurers when damages occur. LAIIER’s technology not only minimizes the risk of significant financial losses for asset owners, it can also prevent minor leaks from developing into major events, potentially conserving millions of gallons annually,” said Aly Bryan, Investor on Closed Loop Partners’ Ventures Group team. “We are proud to support LAIIER’s continued growth in North America, and look forward to working with their team to advance circularity across industrial applications and in the built world at scale.” 

About LAIIER

LAIIER solves the $19B+ annual problem of damage and downtime caused by liquid leaks in commercial buildings and industrial equipment. The company’s patented technologies deploy digital intelligence to detect and alert customers to leaking water, hydrocarbons, and more. Customers subscribe to the full-stack solution, which includes a unique sensor technology, connectivity and cloud services; providing a scale, precision, capability, and return on investment that competitors cannot match. LAIIER’s technologies are deployed with insurers, real estate owner operators, and system integrators in North America and Europe.

About the Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough circular solutions for foundational materials that underpin and significantly influence a wide array of vital sectors of the economy. These materials include organics, minerals, polymers and water. Closed Loop Ventures Group partners with founders and companies who rethink how products are designed, manufactured, consumed and recovered, with the shared vision of reimagining supply chains and eliminating waste. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Ventures Group and apply for funding, visit www.closedlooppartners.com.

PRESS CONTACTS

LAIIER

Laura Lilienthal, VP of Marketing, [email protected]

Closed Loop Partners

Bea Miñana, Communications Director, [email protected]

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision.

Executive endorsements of Closed Loop Capital Management are for illustrative purposes, designed to attract business development contacts, and should not be construed as a client or investor testimonial of Closed Loop Capital Management’s investment advisory services. All such endorsements are from current or former portfolio company leadership about Closed Loop Capital Management’s ability to provide services to their companies. Closed Loop Capital Management has not, directly or indirectly, paid any compensation to such individuals for their endorsements.

The Case Studies described on the Website are included as representative transactions to demonstrate assets to which Closed Loop Capital Management provides capital, however, are not representative of all Closed Loop Capital Management investments and are not necessarily reflective of overall results of any of Closed Loop Capital Management’s businesses. Investments in other businesses may have materially different results. Not all Closed Loop Capital Management investments had or will have similar characteristics or experiences as those included herein.

Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

“We are entering the era of the local, circular economy.”

Localization––of industries, supply chains and jobs––is gaining momentum in cities and states across the country. Spurred by increased global trade pressures, pandemic-induced bottlenecks, intensifying climate impacts and increasingly volatile trade routes, a renewed call for local supply chains has emerged.

These appeals have permeated both business and policy: economic regulations increasingly prioritize local goods and production, while ‘Made in America’ initiatives are championed by major corporations like Walmart and Amazon and incentivized by the federal government.

The motivation is clear as the benefits of localization are manifold: when local communities are empowered with ownership of the goods and materials they consume, they reap economic, environmental and social rewards.

For us at Closed Loop Partners, a decade of investing, innovating and building solutions for a waste-free world has taught us the key to a successful local economy: it must be circular.

Lessons from 10 years of local, closed loop initiatives

From its inception, Closed Loop Partners recognized that a circular economy—a system that eliminates waste, recirculates goods and materials, and regenerates nature—goes hand-in-hand with localization.

Graphic by: Closed Loop Partners

This vision first came to life when we launched our Closed Loop Infrastructure investment strategy 10 years ago. Leveraging catalytic funding from several of the world’s largest corporations, Closed Loop Partners invested in recycling infrastructure within local municipalities, keeping material out of landfills across the country.

Today, our work has expanded to embody the fullness of circularity, supporting solutions that infuse circularity not only in how we handle waste, but in how we create and maintain goods––through redesigning, remanufacturing, reusing and repairing––with a commitment to localization woven throughout.

“Local supply chains offer smaller, more efficient material loops that avoid leakage, waste and emissions-intensive transportation.”

The more local each stage of production, the more value is shared within local communities, enabling an incentive structure to keep products at their highest and best use for multiple lives.

If we prioritize local circularity and reverse the status quo of long, inefficient and expensive supply chains, the benefits are undeniable.

Here are four outsized impacts that local circularity can unlock: 

1) Grow Local Wealth 

From designers and engineers to manufacturers and business owners, circularity creates meaningful jobs and economic opportunities in remanufacturing, recommerce, reuse, repair and recycling. It’s estimated that transitioning from today’s linear economy to a circular economy would net 7 to 8 million jobs globally by 2030, many of which are inherently place-based in local manufacturing, repair, reuse and recycling sectors. In the U.S., green jobs are expected to expand to nearly 24 million, comprising 14% of total U.S. jobs by 2030.

In addition to job creation, circularity keeps the value of materials, goods and services in local communities. One such example can be found in our electronics value chain: in lieu of importing raw materials, manufactured electronics and e-waste, a transition to repairing, reselling and disassembling electronics locally keeps valuable metals and minerals within the U.S. production sector. In North America, over 7 metric tons of e-waste are generated per capita––a circular electronics value chain in the region could bring over $8 billion in value back to communities.

One example of a solution to keep more electronics in circulation is Molg, a portfolio company of Closed Loop Partners that’s capturing valuable components and materials from discarded enterprise electronics in Microfactories across the U.S. By disassembling locally, Molg keeps these materials out of landfill while supporting the local economy and job creation—enabling local remanufacturing and resale while reducing the need for imported resources.  Molg’s technology is designed to enable cost-effective recovery of components and materials—reducing waste, boosting supply chain resilience and ensuring that valuable resources are recovered for future use.

Photo credit: Molg

2) Reduce Costs (and Emissions) 

Beyond value creation, local circularity reduces the economic and environmental costs associated with long, inefficient supply chains. As our economy has globalized, goods and materials traverse an ever-expanding number of transportation nodes that incur unnecessary expenses and emissions.

Consider that 80 percent of the emissions associated with the consumption of goods and services in C40 cities came from goods and services that were imported. To reverse this trend, new circular businesses are working to localize recycling and remanufacturing of critical materials.

One such example is Circular Services, a Closed Loop Partners company and the largest privately held recycling company in the U.S., serving municipalities and commercial properties in some of the nation’s largest and fastest growing cities. Through its network of Circular Resource Facilities, Circular Services collects and processes valuable commodities––including paper, metals, glass, plastics, organics, textiles and electronics––keeping valuable materials in local circulation and improving regional economic and environmental outcomes in the communities in which it operates.

By employing innovative technology within reuse, recycling, remanufacturing and recommerce, resources that were once sent across the country or across the world at end-of-life are now processed locally within Circular Services’ facilities, helping return more materials to supply chains of major consumer brands for continued use at their highest possible value. In 2023, Circular Services put over 1 million tons of materials back into production supply chains, keeping these materials out of landfills, avoiding over 1.6 million metric tons of emissions and saving government and business the cost of landfilling goods.

3) Build Agility (and Resilience) 

Long supply chains are inherently rigid and slow to adapt. By shifting towards more local, circular supply chains, we can build shorter, malleable material flows that can more easily respond to changes and disruptions. This also reduces reliance on goods and resources that are located across the world and need to travel long distances through complex supply chains.

With the steady rise of online shopping, the reverse logistics of e-commerce returns is a prime example of a long, complex supply chain rife with silos and inefficiencies. Fillogic, a Closed Loop Partners portfolio company, is reimagining these logistics to bring them closer to home.

Photo credit: Fillogic

By repurposing under-utilized spaces at shopping malls and strip centers into local logistics hubs, Fillogic activates a network of local retailers and customers, adapting to local needs and conditions. Their technology intercepts unsold garments at the middle mile and redirects them to the appropriate channels for resale. Fillogic provides a complete reverse logistics solution that supports returns, resale, trade in and recycling. By keeping this process local, they avoid sending products through inefficient legacy supply chains—where they traditionally end up as waste—while allowing retailers to adapt to local supply and demand with speed and agility. In 2024 alone, Fillogic kept over 500 million tons of materials in circulation (a 500% increase over 2022), avoiding over 500 million tons of greenhouse gas emissions.

Photo credit: Fillogic

4) Create Pride 

Finally, circularity can foster a sense of pride in local communities. A product that is made and sold locally offers a tangible connection to community and place. A product or service that is remade, resold and that recirculates value locally perpetuates that community connection throughout each of its uses and lifetimes––all while fostering communal responsibility in keeping products out of landfills and the natural environment.

A powerful example of this is the Petaluma Reusable Cup Project in California, led by the NextGen Consortium, an industry collaboration managed by Closed Loop Partners’ Center for the Circular Economy. As a first-of-its-kind initiative, the project made reusable cups the default option in more than 30 restaurants in the City of Petaluma. Consumers were invited to use, return and reuse iconic purple containers in place of disposable, single-use alternatives.

Photo credit: Kellyann Petry

Engaging national brands alongside local establishments and consumers, the project united a network of community members and institutions, inviting shared ownership in reducing local waste, supporting local businesses and maintaining local value. While we are still collecting and analyzing data, the level of community engagement achieved is demonstrated in early findings from the project: over 220,000 cups were returned, ~80% of the Petaluma residents surveyed were aware of the program, and 90%+ of the Petaluma residents surveyed had a very good, good or neutral experience with the program––demonstrating the power of strong, local initiatives.

Photo credit: Kellyann Petry

Opportunities Ahead

As we reflect on our 10 years of work at Closed Loop Partners, one thing is clear: a resilient, equitable and sustainable economy must be both local and circular––and the solutions to make this possible are on the rise.

To bring this future to life, more investment in local infrastructure, more collaboration across public and private stakeholders, and a renewed focus on capturing the value of materials used to power our economy will be critical. By bringing together localization and material circulation, we can unlock powerful incentives for our communities: increased value, reduced costs, improved agility and pride, to name just a few.

As we look toward an increasingly evolving future––with climate impacts and economic changes, but also with opportunities to rethink the status quo––the importance of this work will only grow. A local circular economy offers a pathway for communities to thrive and adapt to the challenges ahead. It is the key to a prosperous future.

Disclosures

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision.

Executive endorsements of Closed Loop Capital Management are for illustrative purposes, designed to attract business development contacts, and should not be construed as a client or investor testimonial of Closed Loop Capital Management’s investment advisory services. All such endorsements are from current or former portfolio company leadership about Closed Loop Capital Management’s ability to provide services to their companies. Closed Loop Capital Management has not, directly or indirectly, paid any compensation to such individuals for their endorsements.

The case studies presented in this material have been included as representative transactions to illustrate the platforms, technology and manufacturing capabilities of Closed Loop Partner’s partner companies and are not based on the performance of any investment. The case studies presented in this material are not representative of all Closed Loop Partners’ investments and are not reflective of overall results of any of Closed Loop Partners’ businesses. Not all Closed Loop Partners investments had or will have similar characteristics or experiences as those included herein.

Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.