Circularity European Growth Fund II closes at an extended €215 million hard cap

Circularity European Growth Fund II closes at an extended €215 million hard cap

Circularity Capital, the circular economy growth investor, has announced the oversubscribed final close of its second fund at €215 million. Circularity European Growth Fund II (“CEGF II” or “the Fund”) is 3x larger than Circularity Capital’s debut fund of £60 million which closed in 2018 and makes it the largest specialist circular economy private equity fund across the globe.

CEGF II will continue Circularity Capital’s dedicated strategy to invest into circular economy growth-stage businesses in Europe. According to analysis by Accenture, the circular economy represents a $4.3 trillion[1] value creation opportunity globally, whilst also presenting a scale decarbonisation opportunity to reduce greenhouse gas emissions by 39%[2]. The firm is focused on making investments into businesses whose circular economy characteristics are their source of sustainable competitive advantage. Target companies aim to decouple business growth from intense resource utilisation, generating both economic and environmental benefits. Example strategies preserve or extend asset lives, improve the utilisation of assets and/or enable materials and products to be used over multiple cycles. 

To date, Circularity Capital has made eight investments from Fund I and two investments from Fund II. Investee companies include ZigZag, a multi-award-winning SaaS platform for eliminating retail returns wastage which was sold by Circularity to NYSE listed Global Blue in March 2021; Shark Solutions, a global leader in advanced recycled PVB products, nominated as one of Bloomberg’s 50 Global Positive Change Leaders; and Grover, the leading consumer-tech subscription platform, which raised $330 million in equity and debt funding earlier this month, bringing the company’s valuation to over one billion US dollars.

Investors in CEGF II are comprised of blue-chip institutional investors including pension funds, fund of funds, insurance companies and family offices across Europe, UK and North America. CEGF II is classified as “Article 9” under the European Union’s new Sustainable Finance Disclosure Regulation.

We are delighted to have supported the Circularity team on this milestone fundraise.


[1] Source : Waste to Wealth, Accenture Strategy,

[2] Source: The Circularity Gap Report, 2021