Ray Hugel

Financing Circularity in a Challenging Climate: Innovative Sources of Capital for Circular Solutions

Ray Hugel, Director of Closed Loop Catalytic Capital & Private Credit, Closed Loop Partners

The gaps and bottlenecks of our current recovery and recycling system are more apparent––from collection to sortation to processing infrastructure and innovations. Financing is needed to support these solutions, but given high interest rates and volatile macroeconomic environments, companies and municipalities are hesitant to make the necessary investments and frequently struggle to find the funds needed to fill those critical gaps. Traditional financing sources often lack the flexibility and risk tolerance needed to support novel solutions and capital-intensive projects that may lack a clear line of sight to scale or profitability. However, there is a world of alternative financing that has yet to be tapped––and is increasingly important today. Catalytic capital, which prioritizes both environmental impact and financial returns, can be a critical tool to de-risk these projects, providing patient capital and crowding in more traditional financing partners over time.  Other panelists can include: grant organizations (EPA, The Recycling Partnership, State Orgs, etc.), other alternative financing providers, local banks.    

Ray is Director and Co-Head of Closed Loop Catalytic Capital & Private Credit, the firm’s private credit and catalytic capital investment strategy. He contributes to the origination, underwriting, structuring, execution and portfolio management of opportunities utilizing flexible and risk–tolerant debt capital to build the circular economy. He has worked with private companies, nonprofits and municipalities to structure financing solutions ensuring the long-term success of numerous circular economy projects across the U.S., leveraging the broader Closed Loop Partners ecosystem to build connectivity and growth across the sector. He has led investments into several large-scale projects including the financing of LRS’s state-of-the-art material recovery facility in Chicago, and the financing that allowed for the distribution of 162,000 brand new recycling carts to the residents of the City of Kansas City.