risks.

The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Credit risk, Liquidity risk and Concentration risk. Sustainability risks may lead to a significant deterioration in the financial profile, profitability or reputation of an underlying investment and may therefore have a significant impact on its market price or liquidity. The environmental, social, and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

Plastic Circularity Strategy

Growth-stage private equity investment in scalable solutions to plastic waste 
 

Transforming the plastic value chain into a circular model has produced a market estimated to be USD 1 trillion. Private equity has a role to play in accelerating the scaling of solutions and to close the funding gap between venture and strategic investments. Increasing circularity in plastics mitigates the industry's impacts on climate and biodiversity. 

Source: Fintech Market Size, Share, Price, Growth, Report 2023-2028 (expertmarketresearch.com).
Please note our Plastic Circularity Strategy has not yet launched.

plastic: indispensible but problematic.

Every year we produce the equivalent of the total mass of the global population in new plastics – effectively the weight of 2.5 mn blue whales. The key problem here is this vast industry follows a linear ‘take-make-waste’ model. 

Production is problematic because 90% of plastics are created using fossil fuels, generating large quantities of greenhouse gas emissions (‘GHGs’). 

Usage is often short-lived as nearly half of this volume consists of single-use plastics. This produces vast amounts of waste, which is often poorly managed:

  • 10% is recycled 
  • 26% is incinerated or even burned in open air, emitting carbon and toxic fumes 
  • About 15% releasing into the natural environment, harming nature and biodiversity
     

transforming the value chain.

But policy, technology and market forces are driving the formation of a circular value chain for plastics, based on three pillars:

  1. Produce plastic from renewable sources. 
  2. Change the way we use plastic, focusing on longevity rather than single-use
  3. Massively increase the collection, sorting and recycling of plastic waste

Plastics - innovative materials-01.svg
Innovative plastic
materials

Innovative materials that:

  • Reduce use of petroleum
  • Improve recyclability or compostability 
  • Digital traceability

 

Plastics - new usage models-01.svg

New usage
models

Products and services that extend the life of plastic goods through re-use, repair and refill

or innovative consumer solutions offering the product without single-use packaging

 

Plastics - collection-sorting-recycling-01.svg

Improved collections, sorting
and recycling
Technologies that create
new/improved sources of recycled content
or improve recycling
economics or expand types of
plastic recycled 
Expansion of recycling capacity
Digital enablers

 

our plastics strategy.

Plastics-strategy-Reduce-waste.jpg
Reduce plastic waste

avoid or recycle waste
 

 

Plastics-strategy-Deliver-returns.jpg
Deliver market returns

mid-teens net IRR
 

 

Plastics-strategy-Reduce-GHG.jpg
Reduce GHG

in the plastic waste value chain
 

 

Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance/risk.

Our strategy is designed to reduce plastic waste and GHGs in the plastic value chain while delivering returns, by investing in companies specialising in innovative materials, new usage models and improved collection, sorting and recycling.

Plastics - impact at scale-01.svg Driving impact at scale: we will seek to catalyse system-level change in end-to-end plastic value chains in order to significantly reduce volumes of plastic waste, thereby reducing GHG emissions, and ensure scalability by focusing on solutions generating market returns 
Plastics - Player access-01.svg Unparalleled access to high-quality deal flow and key players in the plastic system: our strategy benefits from privileged access to the technical expertise and the network of the Alliance to End Plastic Waste (‘AEPW’). The AEPW convenes some 70 corporate members from the petrochemical, packaging and consumer goods industries. Our broader network comprises 130 first-tier private-equity managers offering more than 300 co-investment opportunities per year
Plastics - Largest fund-01.svg Our strategy is the largest dedicated to plastic circularity globally: we will predominantly invest at the growth equity stage where the funding gap is the most severe, across a wide scope of solutions, leading to optimal diversification and impact. The strategy has a global profile, with a focus on developed economies where policy, technological and market forces are fostering impactful plastic circularity solutions.

 

strategy features.

  • Access to a global private-equity mandate in private equity focusing on growth-stage investments in Europe and the US
  • Strong deal flow from the AEPW, the Plastic Circularity team and through LOIM's relationships in the private equity market with highly experienced Private Equity investors
  • The unique combination of LOIM's private-equity track record with the expertise of the AEPW Technical Solutions Centre, complemented by specialised research from holistiQ, the sustainable-investment platform of LOIM
  • High-conviction investment: we aim to deploy capital in 20-30 select opportunities

why LOIM?

Superior sourcing network
 

  • LO Private Equity network of 130 GPs: 300 co-investment opportunities per year. Over the past 3 years c. USD 300 mn within scope of fund 
  • LO Private Equity direct network among generalist and specialist impact funds, strategic and financial advisors  
  • The Alliance to End Plastic Waste (AEPW), with its >70 corporate members, its projects (50 to date in 29 countries) and its Plug & Play incubator program (>100 companies funded )

 

Superior due diligence capabilities

Technical expertise 
  • Technical Solutions Center of the AEPW with 5 industry experts (contracted as "technical advisor" to the Fund), and 4 thematic expert groups with 20-30 experts from member companies
  • AEPW’s industry access within (and beyond) their member companies
Sustainability
  • Lombard Odier Sustainability Investment Solutions research team of 30 researchers 
  • Sustainability consultancy Systemiq and network of carbon scoping consultants

 

Superior value creation capabilities

  • Strategic market insights: Regulation, new market opportunities…
  • Industry access
    • Talent pool (exec and non-exec)
    • Commercial partnerships (customers and suppliers) 
    • Capital partnership
  • Insights on exit routes
  • Sustainability: Carbon scope measurement and reporting, ESG reporting

 

investment philosophy and process.

At LOIM, we believe in the potential of sustainability. This conviction is integrated into our investment process, from thematic research to deal selection and ongoing portfolio management.

Our investment process leverages our expertise to maximise return and impact

Source: LOIM analysis. For illustrative purposes only. 

investment team.

Our multi-disciplinary team combines deep private-equity, sustainability, and technical expertise.

Christopher_round.png Christopher Tritten
Global Head of Private Assets
and Co-lead Portfolio Manager
Victoire Carous_round.png Victoire Carous
Co-lead Portfolio Manager
 

LOcom_AuthorsAM-Hohne-Sparborth.png

Dr Thomas Hohne-Sparborth, PhD
Head of Sustainability Research

Michael-Urban-round-author.png Michael Urban, PHD
Chief Sustainability Strategist

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Plastic circularity: why LOIM private equity?
investment viewpoints Asset Management
investment viewpoints Asset Management Wholesale Plastic Circularity Strategy Alternatives. Institutional

Plastic circularity: why LOIM private equity?

What benefits does private equity offer for investing in a lower-carbon, circular model for plastics?  This Q&A explores how our team finds value.

Plastic wrap: from seaweed biopolymers to Europe’s new law for cutting packaging waste
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Plastic Circularity Strategy Alternatives.

Plastic wrap: from seaweed biopolymers to Europe’s new law for cutting packaging waste

Converting kelp into carrier bags and a deal to build Europe’s largest sorting facility for chemical recycling are among the circularity-focused innovations and ventures covered in our latest issue of Plastic wrap

Investing in a new usage model to cut plastic packaging
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Sustainable Plastic Circularity Strategy Equities

Investing in a new usage model to cut plastic packaging

How can private-equity investments cut plastic waste? We consider a portfolio company providing concentrated and refillable personal and household products.

Plastic waste: linear today, circular tomorrow
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Sustainable Plastic Circularity Strategy Equities

Plastic waste: linear today, circular tomorrow

Explore a day in the life of plastic waste today. Then discover the world of tomorrow’s plastic value chain in a circular model.

Plastic wrap: biotransformation, bans on waste exports and a landmark lawsuit
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Plastic Circularity Strategy Alternatives.

Plastic wrap: biotransformation, bans on waste exports and a landmark lawsuit

Our bimonthly on plastics circularity focuses on scaling up plastic reuse, the biotransformation of refuse and banning many current European exports of waste. 

Plastic wrap: curbing microplastics and promoting reuse models
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Sustainable Plastic Circularity Strategy Equities

Plastic wrap: curbing microplastics and promoting reuse models

Our bimonthly on plastics circularity focuses on curbing microplastics, why reusable packaging has the edge and striving for a global treaty on plastics.

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