Closed Loop Fund I
United States of America
Last updated 12 May 2020, by Impactyield.
Closed Loop Fund makes early-stage investments in companies that develop products and services to improve recycling practices and reduce waste management costs for municipalities in North America.
The Fund is a $100m impact investment fund designed to scale recycling infrastructure across North America. The Fund provides zero-interest loans to municipalities and below-market loans to recycling companies to build comprehensive, systemic recycling programs. The goal is to create economic value for cities and companies by increasing recycling rates.
Investors include the world’s largest consumer product and retail companies committed to finding a national solution to divert waste from landfills into the recycling stream for use in the manufacturing supply chain. Key supporters include 3M, Coca-Cola, Colgate Palmolive, Dr Pepper Snapple Group, Johnson & Johnson Family of Consumer Companies, Keurig Green Mountain, PepsiCo and the PepsiCo Foundation, Procter & Gamble, Unilever, Walmart and the Walmart Foundation.
The Closed Loop Fund has been covered by major media including the New York Times (http://www.nytimes.com/2015/11/29/business/energy-environment/big-compan...), the Guardian (http://www.theguardian.com/sustainable-business/2015/sep/25/walmart-coca...), and Fortune (http://fortune.com/2015/09/24/new-idea-recycling/).
For more information, visit www.closedloopfund.com.
Closed Loop Fund has a robust pipeline of over 100 in-bound proposals requesting more than $200m in capital. Our investors expect a 0% return on investment and a substantial increase in the amount of recycling in North America, which will benefit the bottom-lines of all consumer goods and retail companies.
Investment criteria includes:
• Financials: Clear line-of-sight to repayment through revenue, pay-for-success, and/or assets.
• Tonnage: Significant amount of recyclable material diverted from landfill.
• Scalability: Ability of project to scale and replicate in communities across the country.
• Reporting: Ability to deliver robust monthly reporting on key metrics of success.
Key performance indicators
Asset manager: Closed Loop Partners
Product track record: Fund has 9 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Below risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Closed - still investing
Inception year: 2013
Vintage year: 2015
Target close date: n.a.
Product term: 10
Assets under management: 75,000,000 USD (US Dollar)
Investment size: Min: 250,000; Max: 6,000,000; Avg: 3,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 5
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: 3M, Coca-Cola, Colgate Palmolive, Johnson & Johnson Family of Consumer Companies, Keurig Green Mountain, PepsiCo and the PepsiCo Foundation, Procter & Gamble, Unilever, Walmart and the Walmart Foundation.
Limited Partner / Investor Type: Other Institutional Investors
By 2025, Closed Loop Fund aims to:
• Eliminate more than 50 million tons of greenhouse gas
• Divert more than 20 million cumulative tones of waste from landfills
• Create 20,000+ local jobs across the United States
• Save nearly $1.2 billion for American cities
First, we will prove replicable models that will help unlock additional investment in recycling by provide Zero interest for cities and below market for companies to maximize collection, sortation, and processing of recyclable material. These loans will attract conventional capital for co-investment and replication.
Second, we will enable the market to increase value for recycled content. By leveraging our unique network of the full recycling system -- from brands and retailers to cities and recyclers -- to enhance the systems that will support our investment strategy.
As a result, recycling will expand. We expect to track additional, more affordable capital attracted to the industry; scaled solutions that improve recycling system profitability; increases in recycled-content supply and usage; packaging designed to more recyclable; increased recycling access and rates and waste diverted from landfill.
Environment and society will benefit by reduced greenhouse gasses, creating jobs, and saving taxpayer dollars.