Polestar Circular Debt Fund
The Polestar Circular Debt Fund (PCDF) will finance circular economy production companies that apply a proven but innovative technology for the first or second time at commercial scale.
The technologies have the potential to globally transform their respective value chains, and thereby deliver large-scale societal and financial returns. At the same time the first and second commercial-scale application are often difficult to finance. The projects are too innovative for bank funding and too expensive for equity capital with the result that they are delayed or realised at sub-optimal scale. With PCDF we aim to solve this funding gap and therewith enable and accelerate the circular economy transition.
Based on our track record with the Limburg Energy Fund, we have developed a de-risking method that allows us to provide financing with a controlled risk-profile and attractive financial and societal returns. By supporting the circular innovators to realise their first and second plant, these innovators can proof their technology and businessmodel, in order to attract financing from banks, private equity and corporate investors for the further scaling up.
The fund will exclusively provide secured senior, unitranche and subordinated loans. Impact targets for the the fund are the reduction of GHG emissions, the substitution of abiotic (fossil) resources and the reduction of waste. The fund specifically aims to contribute to achieving UNSDG 9, 11, 12 and 13.