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. Circular Services owns and operates municipal recycling facilities in the U.S. Circular Services has major municipal and commercial contracts to recycle and reuse paper, metal, glass, plastic, organics, textiles and electronics in New York, New Jersey, Pennsylvania, Arkansas, Florida, Texas and Arizona. Brookfield has committing 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 pursue 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.

Sims Deal
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, including investment 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, processing and marketing 100 percent of the metal, glass, and plastic, and 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 project 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 through their products are contributors of waste in the U.S. through consumer products that use packaging and plastics.

Keywords: Brookfield Asset Management.

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