GOBBLE: Brookfield Global Transition Fund Funnels Money to Create a U.S. Recycling Giant
Posted on 11/20/2022
New York-based Closed Loop Partners, LLC inked a deal with Brookfield Renewable to form Circular Services: a developer of circular economy and recycling infrastructure in the United States. Circular Services is majority owned and managed by Closed Loop Partners. Not only does this company own and operate municipal recycling facilities across the U.S, but they also have major municipal and commercial contracts. These contacts enable them to recycle and reuse, paper, metal, glass, plastic, organics, textiles and electronics throughout multiple states. These states include: New York, New Jersey, Pennsylvania, Arkansas, Florida, Texas and Arizona. Brookfield has committed as much as US$ 700 million toward the growth of Circular Services through the Brookfield Global Transition Fund. Brookfield has invested an initial US$ 200 million in the company, with an additional US$ 500 million committed to pursuing growth opportunities.
Ron Gonen is the Founder and CEO of Closed Loop Partners. Prior to Closed Loop Partners, Ron Gonen was the Deputy Commissioner of Sanitation, Recycling and Sustainability in New York City in the Michael Bloomberg Administration.
On December 30, 2021, Australia-based Sims Limited, signed a deal to sell a 50.46% stake for US$ 45.4 million in Sims Municipal Recycling of New York LLC, to a group of investors. The list of investors includes funds managed by Closed Loop Partners. Sims Municipal Recycling was established in 2003, and is the cornerstone of the New York City curbside recycling program. Not only does this program process and market 100 percent of metal, glass, and plastic, but it also includes 50 percent of the paper collected by the New York City Department of Sanitation (DSNY). SMR operates four recycling facilities; three in the New York-New Jersey metro region and one in Florida. In FY21, SMR processed 660,000 tonnes of municipal curbside material.
Closed Loop Partners also oversees the Closed Loop Fund, which finances the scaling of recycling plants in the U.S. Investors in the Closed Loop Fund include 3M, Coca-Cola, Colgate-Palmolive, Unilever, Walmart, Dr Pepper Snapple Group, Johnson & Johnson, Keurig Green Mountain, Nestle Waters, Procter & Gamble, and PepsiCo. These investors are directly contributing to the overall waste throughout the U.S, through the use of heavy packaging and plastics from their products.
Keywords: Brookfield Asset Management.