TPG Rise Leads $170M Investment in UBQ Materials, Clean-Tech Company Converting Landfill Waste Into Recyclable Plastic Substitute
Investment comes in the wake of the UN's Climate Change Conference, COP26, as countries around the globe commit to lowering emissions in new Global Methane Pledge
TEL AVIV, Israel and SAN FRANCISCO -- December, 15, 2021 -- UBQ Materials, developer of the leading climate-positive thermoplastic material on the market, today announced a $170 million funding round, led by TPG Rise, TPG's global impact investing platform.
TPG's investment was made through TPG Rise Climate, the firm's dedicated climate investing fund, and The Rise Fund, its longstanding, multi-sector impact investing fund. The financing round also included participation from existing investor, Battery Ventures, and other prominent investors such as M&G's Catalyst strategy, a UK-based investor specializing in flexible, long term impact investments. Additional terms of the transaction were not disclosed.
Using a patented conversion process, UBQ Materials turns landfill-destined municipal solid waste, including all organics, into UBQ™, a climate-positive, cost-competitive, and fully recyclable plastic substitute. A sustainable replacement to plastic, wood or concrete, UBQ™ can be used both on its own and in conjunction with conventional oil-based resins to offset the overall carbon footprint of end-products in industries including construction, automotive, logistics, retail, and even 3D printing.
"In addition to converting municipal waste into functional thermal plastics, UBQ's material solution is energy efficient, uses no water and produces no effluents," said Steve Ellis, Co-Managing Partner of The Rise Funds. "UBQ can be utilized in a broad array of industrial and consumer applications. We're excited to be partnering with management to scale the business globally."
The investment will fund UBQ's global expansion to meet growing demand, beginning with a large-scale facility in the Netherlands to be operational by the end of 2022. Funds from the round will also go into UBQ's continued research to advance certifications, research and development of new products.
"As countries and industries converged in Glasgow at COP26, negotiating the urgent benchmarks we must hit in lowering Greenhouse Gas (GHG) emissions, this investment could not come at a more apt time," said Albert Douer, Chairman and Co-CEO of UBQ Materials. "Through the prevention of landfill-related methane emissions and the replacement of carbon intensive raw materials, UBQ can support governments, brands and major manufacturers in achieving their sustainable development goals."
Today, over 2 billion tons of municipal solid waste (MSW) are produced annually around the world, more than 70% of which end up in landfills or is openly dumped. Landfills are the third largest human source of methane, a GHG 80 times more powerful than carbon dioxide over 20 years. For every ton of UBQ™ produced, the solution can prevent as much as 12 tons of CO₂ equivalent from entering the environment.
"Waste is not the end, it is only the beginning," said Jack (Tato) Bigio, Co-Founder and Co-CEO of UBQ Materials. "This financing round enables us to widen the reach of our patented conversion technology and novel material, bringing us closer to a functioning circular economy worldwide."
As part of the transaction, The Rise Funds' Ellis will join UBQ's Board of Directors along with Ignacio Giraldo, Business Unit Partner at TPG Rise.
UBQ Materials was represented and accompanied throughout the transaction process by attorneys Adrian Daniels, Yuval Shalhevet, Itamar Cohen and Dana Kleiman of Yigal Arnon & Co.
J.P. Morgan acted as Sole Placement Agent on the transaction.
About UBQ Materials
UBQ Materials Ltd. has developed an advanced conversion technology, patenting the world's first bio-based thermoplastic (UBQ™) made entirely of unsorted household waste, including all the organics; a revolutionary way to divert municipal solid waste from landfills and convert it into a sustainable substitute for oil-based plastics. A certified B Corp, UBQ is a globally awarded cleantech company with customers including Mercedes-Benz, global retail solutions provider Mainetti and Arcos Dorados, the world's largest franchisee of McDonald's restaurants across Latin America.
With a climate-positive impact and cost-competitive price, UBQ™ empowers manufacturers with a simple transition to greater sustainability. Learn more by visiting UBQMaterials.com.
Access UBQ Materials logos and imagery via the Press Kit.
About The Rise Funds
The Rise Funds are a core pillar of TPG Rise, TPG's global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on achieving the United Nations' Sustainable Development Goals. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and conservation, education, food and agriculture, financial technology, healthcare, and technology.
With more than $12 billion in assets across The Rise Funds, TPG Rise Climate, and the Evercare Health Fund, the TPG Rise platform is the world's largest private markets impact investing platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns.
About TPG Rise Climate
TPG Rise Climate is the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise. TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG's investing professionals, the strategic relationships developed across TPG's existing portfolio of climate-focused companies, and a global network of executives and advisors. The fund takes a broad-based sector approach to investment types, from growth equity to value-added infrastructure, and focuses on five climate sub-sectors: clean energy, enabling solutions, decarbonized transport, greening industrials, and agriculture & natural solutions. Jim Coulter, TPG Founding Partner and Executive Chairman, serves as Managing Partner of TPG Rise Climate. Former U.S. Treasury Secretary Hank Paulson serves as TPG Rise Climate's Executive Chairman. For more information, please visit www.therisefund.com/tpgriseclimate.
For TPG/The Rise Funds:
For UBQ Materials:
Nicole Kaufman Grubner