Closed Loop Catalytic Capital & Private Credit

About Our Catalytic Capital & Private Credit Strategy

• What is the challenge we are addressing?

  There is a misalignment between the amount of materials produced today––from packaging to consumer products––and the infrastructure available to recover them, process them after use and return them to manufacturing supply chains.

  Technological inefficiencies and outdated materials recovery facilities have resulted in bottlenecks across the recycling system. As a result, the current supply of recovered materials falls well short of demand. Meanwhile, consumers and companies are paying to dispose of millions of tons of valuable commodities every year, forever losing the opportunity to reclaim these materials and return them to productive use.

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• What is the role of catalytic capital?

  The transition to circularity requires capital that is willing to move before markets are ready. This helps prove the financial viability of emerging solutions and sends the market signal that attracts broader investment needed for scale. ​

  This is where catalytic capital plays a critical role. Defined as flexible financing that prioritizes specific outcomes, it bridges the gap between impact and investment, connecting profit incentives with urgent environmental outcomes in ways that conventional capital cannot.

  Amidst increased market volatility, patient capital and partnership-first approaches are key to building resilience, opening opportunities for follow-on capital to ensure companies remain successful during challenging market disruptions. ​

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• What is our approach?

  Across multiple strategies, Closed Loop Catalytic Capital & Private Credit provides a flexible mix of financing solutions––such as secured and unsecured loans and mezzanine debt––to support a range of circular economy projects, companies, infrastructure and enabling technologies. By deploying catalytic capital, which seeks to accelerate and de-risk the development of high-impact projects and companies, Closed Loop Catalytic Capital & Private Credit is positioned to structure and attract additional forms of traditional financing to bolster infrastructure that supports a circular economy. 

  Each of our catalytic strategies invests to bridge existing financing gaps and accelerate the development of solutions that help scale circular economy infrastructure across North America. 

  Our approach goes beyond providing capital. Leveraging our team’s extensive experience and deep expertise on the circular economy and recycling operations, we add value to our portfolio organizations and investor base as advisors, connectors and enablers.

  With direct support from our team and borrower support groups, our partners have expanded into new markets, successfully incorporated transformational technologies, worked collaboratively to solve industry challenges, and accessed follow-on capital to continue growing.

  By connecting borrowers with our investor network, we amplify the success of the projects, provide opportunities for feedstock and offtake relationships, and give critical market signals for a project’s or technology’s viability.

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• What is our investment criteria?

  Closed Loop Catalytic Capital & Private Credit deploys flexible, catalytic capital to finance circular economy infrastructure projects, technologies and companies that meet the following criteria:

  • Employing replicable and scalable business models with demonstrable track records, or plans demonstrating strong potential
  • Entrepreneurial and effective management teams
  • Creating impacts that align with our metrics including increasing materials reuse, reducing the amount of material lost to disposal, and avoiding or reducing greenhouse gas emissions
  • Providing economic benefits to the communities served
  • Operating businesses with an intentional focus on generating impact across these three areas:
    • Access – Increasing the collection of materials by expanding current and next-generation material collection systems, including transportation, logistics and recycling sortation technologies and infrastructure.
    • Optimization – Upgrading recycling systems to more efficiently aggregate, classify and sort materials, increasing the total amount sent for remanufacturing and extending the useful life of materials.
    • Manufacturing – Advancing facilities and equipment that manufacture finished products, packaging or related goods using recycled content, building sustainable end markets for recyclable materials.

   

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