Closed Loop Partners announced that investor Capricorn Investment Group 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 and CEO Ron Gonen.
The funding 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 launched in 2014 to accelerate the transition to a circular economy. And 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. Closed Loop Capital Management now manages capital on behalf of corporations, financial institutions, foundation endowments, and family offices. In 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. And 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 the security of natural resources and optimization of supply chains through waste mitigation, from product design to advanced remanufacturing.
This partnership is based on Closed Loop Partners’ and Capricorn’s shared view of the critical need and opportunity for private investment firms with deep expertise in building solutions to enable a more sustainable and resilient global economy. And Capricorn’s investment will offer 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.
As 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. This 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.
Dentons was legal counsel to Closed Loop Partners. Sidley LLP served as legal advisor to Capricorn SIF.
KEY QUOTES:
“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. 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 Partner William Orum
“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. 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.”
- Tazia Smith, Managing Partner and CEO of Closed Loop Capital Management
“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. Capricorn’s partnership with Closed Loop Capital Management demonstrates the proven value and investment opportunity in the transition towards a waste-free world.”
- Ron Gonen, Founder & CEO of Closed Loop Partners
