Closed Loop Local Recycling Fund
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In partnership with PepsiCo Beverages North America, we invest in new local recycling systems and technologies to improve recycling access for more communities across the U.S.
Why Partner With Us?
Capital
We offer flexible and risk-tolerant capital through a number of different funding vehicles and capital structures, taking a long-term perspective on building resilient circular supply chains.
Expertise
We leverage our team’s industry knowledge and combine that with our research and solutions practice through the firm’s Center for the Circular Economy to accelerate the flow of capital from co-investors, which in turn helps our borrowers diversify their funding sources and supports their growth.
Network
We have built an ecosystem that connects entrepreneurs, industry experts, global consumer goods and technology companies, retailers, foundations, financial institutions and municipalities. Our borrowers get exposure to this network, cultivating synergies and facilitating potential partnerships that can help scale businesses, for example through feedstock or offtake relationships, among other things.
About the Closed Loop Local Recycling Fund
What We Do
Show moreWe provide financing to innovative recycling technologies and infrastructure that can increase recycling in areas in the U.S. with no or limited access to recycling. By serving these areas, we aim to reduce waste and unlock a new supply of recycled plastic (with a focus on rPET), among other valuable materials. We fund projects across the following categories:
- Collection: New or expanded collection systems (including upsizing recycling carts and/or recycling transfer station initiatives) for household recyclables
- Sortation: New technologies or facilities that capture household recyclables
- Processing: New technologies or facilities that intake separated materials and use mechanical or labor means to prepare the recycled materials into raw materials
How We Do It
Show more- We provide competitive and flexible financing to municipalities and private companies working toward the goals listed above.
- We provide loans typically ranging between $500k-$5M over a 3-8 year term, with each loan secured by collateral.
- Equity investments are sized on a case-by-case basis.
- We invest in innovative technologies and operators who are leaders in advancing materials recovery.
Investment Criteria
Show moreApplications are evaluated based on the following criteria:
- Project must be based in the U.S.
- Potential to unlock a new supply or high yield of net new rPET material among other valuable materials, to support PepsiCo’s pep+ (PepsiCo Positive) sustainable packaging goals
- Materials diversion from disposal
- Applicant’s ability to repay
- Replicability and scalability of the project or model
- Amount of increase in access to or participation in recycling
- Amount of increase in the recovery and/or reuse of post-consumer commodities (i.e., plastics, paper, glass, or metal)
- Economic benefit(s) to the community(ies) served by the project or company
- Ability for the applicant and/or project to leverage additional sources of capital
How Our Evaluation Process Works
Show more- Applicant completes our online application form
- We evaluate the application against our criteria to determine potential fit
- We further evaluate the operational and financial details of the project and decide whether to proceed with funding
- If we decide to proceed with financing, we develop deal terms and present the deal to our advisory board and investment committee
- If approved, we proceed to close the deal and fund the project
What You Get, If Approved
Show more- Loan or equity capital (with potential for follow-on investment)
- Technical support and advice
- Access to industry expertise and a wide-ranging network
- Promotion of your project’s milestones and growth through our various communication channels.