Closed Loop Partners has announced a $10 million loan to TemperPack Technologies ("TemperPack"), a leader in sustainable, innovative packaging technology. The financing was deployed by Closed Loop Partners' Catalytic Capital & Private Credit group and will support TemperPack's continued growth in the sustainable packaging sector.

This financing marks Closed Loop Catalytic Capital & Private Credit's third loan to TemperPack since 2018, reinforcing the group's long-term commitment to supporting private companies that reduce waste and advance circular manufacturing. Deploying capital to innovative private companies such as TemperPack is an important component of Closed Loop Catalytic Capital & Private Credit's strategy. The group is focused on providing flexible capital to support private companies, organizations and municipalities that have developed or are developing circular economy-focused projects or products and are seeking more capital to drive net positive environmental and social outcomes.

Based in Richmond, Virginia, TemperPack develops innovative plant-based packaging and manufacturing technologies that help reduce waste and hard-to-recycle materials in supply chains. Its latest offering, WaveKraft, allows customers to simplify their operations and optimize packaging performance with an on-site, on-demand packaging manufacturing platform.

Over the past several years, TemperPack has demonstrated strong growth and financial stability. This, coupled with near-term plans to further innovate and explore different business models that require outside capital, positioned them well for a follow-on loan. As more packaging companies transition their focus to fiber-based packaging, Closed Loop Catalytic Capital & Private Credit believes TemperPack will benefit from the shift. This financing complements Closed Loop Catalytic Capital & Private Credit's loans to other entities up and down the circular economy value chain, including materials recovery facilities ("MRFs") and municipal residential recycling programs, to advance material circularity.

Proceeds of this financing will be used to support TemperPack's research and development, manufacturing and distribution of more sustainable and easier-to-recycle fiber-based products that help reduce the reliance on harder-to-recycle plastics such as Expanded Polystyrene Foam (EPS). While the use of EPS as a packaging material has declined, it continues to be used in industries such as food and beverage and healthcare. With limited infrastructure that can properly recycle EPS in the U.S., the material typically ends up in landfills or incinerated. Solutions like TemperPack's help address this challenge.

"TemperPack is a prime example of the kind of company we seek to support—established, forward-thinking and focused on reducing environmental impact through scalable innovation," said Jennifer Louie, Managing Director of Closed Loop Catalytic Capital & Private Credit at Closed Loop Partners. "Our continued investment in TemperPack aligns with our mission to build a circular economy, reduce waste and promote sustainable manufacturing, not just through recycling, but by reducing the need for hard-to-recycle materials in supply chains."

"We're thrilled to continue our partnership with Closed Loop Partners as TemperPack enters its next phase of growth," said Peter Wells, CEO of TemperPack. "Closed Loop Partners' experience in material circularity, and extensive network of partners, has made them a key partner for our company's growth. With this loan, we look to further scale our capacity and impact, helping reduce waste across major industries––including life sciences, food & beverage, electronics and home goods––while catalyzing the development of new circular products."

The financing from Closed Loop Catalytic Capital & Private Credit signals its readiness to deploy larger amounts of capital and partner with sophisticated co-investors, including major financial institutions. With this transaction, Closed Loop Catalytic Capital & Private Credit becomes TemperPack's second-largest lender, demonstrating the group's ability to help impact-driven companies scale from early-stage innovators to more mature businesses with shovel-ready capital expenditure projects that advance the circular economy.

Following this financing, Closed Loop Partners will continue to support TemperPack as it expands its processing capacity, improves existing facilities and pursues new product development. Closed Loop Catalytic Capital & Private Credit continues to catalyze capital into circular economy infrastructure and solutions that keep a range of valuable materials in circulation.