Fonds économie circulaire

Overview

Fonds économie circulaire is a Quebec-based private equity fund investing in innovative companies promoting the circular economy and environmental sustainability. The fund was established in 2021 in partnership with RECYC-QUÉBEC and the City of Montreal, marking the first of its kind in Canada. It aims to support the emergence of small and medium-sized enterprises (SMEs) adopting business practices rooted in the circular economy. The fund focuses on sectors such as environmental services, renewable energy, waste management, recycling, sustainable agriculture, green technology, clean tech, water treatment, sustainable construction, circular economy, eco-friendly products, sustainable packaging, energy efficiency, sustainable transportation, and carbon capture and storage. The fund's investment strategy targets companies in the seed, early stage, and growth phases, with investments ranging from $1 million to $5 million CAD. As of May 31, 2025, the fund has invested in nine companies, contributing to the reduction of greenhouse gas emissions and the valorization of residual materials. The fund is managed by Fondaction, a Quebec-based investment firm specializing in sustainable finance, and is supported by partners such as the Fondation Lucie and André Chagnon and the Fonds intergénérationnel de l'Université de Concordia. Fondaction's mission is to promote sustainable development and support the growth of businesses that contribute to the well-being of communities and the environment. The fund's investment philosophy emphasizes the importance of integrating environmental, social, and governance (ESG) criteria into investment decisions, aiming to generate positive impacts alongside financial returns. By supporting companies that implement innovative initiatives in the circular economy, Fonds économie circulaire accelerates the ecological transition and environmental protection in Quebec. The fund's track record includes investments in companies like AssistIQ, which provides real-time cost tracking of medical supplies to reduce surgical material waste, LOOP, which produces food products from fruit and vegetable waste to combat food waste, and CarbiCrete, which manufactures cement-free concrete with carbon capture capabilities. These investments demonstrate the fund's commitment to fostering sustainable business practices and contributing to a more sustainable economy in Quebec. The fund's approach aligns with global efforts to promote the circular economy, aiming to create a closed-loop system where resources are reused, recycled, and regenerated, minimizing waste and environmental impact. By focusing on sectors that are critical to the circular economy, Fonds économie circulaire plays a pivotal role in supporting the transition towards a more sustainable and resilient economy in Quebec and beyond.

Investment Focus

• Companies must be based in Quebec
• Companies should operate in sectors related to the circular economy and environmental sustainability
• Companies should be in seed, early stage, or growth phases
• Companies should demonstrate innovative business practices aligned with the principles of the circular economy
• Companies should have a clear plan for reducing greenhouse gas emissions and valorizing residual materials
• Companies should aim to generate positive environmental and social impacts alongside financial returns

Portfolio Companies