The first equity fund in Europe to focus specifically on recycling attracted such strong interest that when it opened for business it was 50% oversubscribed by the private sector.
The £5.5m equity fund, designed to boost UK recycling levels, including that of wood, was established by the Waste & Resources Action Programme (WRAP). It originally set out to secure £1m from the private sector but interest was so high it was decided to increase the amount to £1.5m. The Recycling Fund Ltd, a wholly owned subsidiary of WRAP, committed the remaining £4m.
The money will help address the funding gap experienced by small and medium-sized enterprises in the recycling sector.
Jennie Price, WRAP chief executive, said: “The positive response from private sector investors is a clear signal that there is money to be made in recycling. Our co-investors recognise that this is a rapidly growing sector of the green economy, and they want to be part of that success story.”
The fund will be officially launched in the autumn and will run for up to 10 years. It is expected to provide finance for between 10 and 15 early stage recycling or waste management enterprises.
