Circularity Capital

Circularity Capital is an Edinburgh-based specialist private equity firm dedicated to investing in European growth-stage small and medium-sized enterprises (SMEs) that are at the forefront of the circular economy. Established with a clear mandate to accelerate the transition from linear "take-make-dispose" models to more sustainable, regenerative systems, the firm targets businesses that offer innovative solutions for resource efficiency, waste reduction, and sustainable consumption. Their investment philosophy is rooted in the belief that commercial success and environmental impact are intrinsically linked, aiming to generate strong financial returns alongside measurable positive ecological and social outcomes.

The firm's investment strategy focuses on providing growth equity to established companies poised for significant scaling. Circularity Capital typically commits between €5 million and €25 million of equity per transaction, targeting companies that have demonstrated strong commercial traction and possess robust business models aligned with circular principles. This strategic capital aims to support expansion, product development, market penetration, and operational improvements within their portfolio companies. They seek out businesses that are not only financially viable but also contribute tangible environmental benefits, such as reducing carbon emissions, conserving natural resources, or minimizing waste generation.

Circularity Capital has successfully raised multiple funds to support its mission. Their inaugural fund, which closed in 2018, secured €80 million, demonstrating early investor confidence in the circular economy thesis. Building on this success, the firm announced the final close of its second fund, Circularity European Growth Fund II, in 2023, raising a substantial €215 million. This significant capital pool underscores the growing investor appetite for sustainable and impact-driven investments, particularly within the circular economy. The firm is recognized for its rigorous due diligence process, focusing on both financial performance and the quantifiable environmental and social impact of its portfolio companies, often supporting businesses pursuing B Corp certification.