New Delhi, April 1 -- Singapore-based private equity firm Circulate Capital plans to deploy half of its new $300 million fund in India and its neighbouring countries, betting that tightening recycling regulations and a maturing circular economy would make the country its most attractive market.

"We invested half of our previous fund in India, and we expect to invest half of the capital from our new fund in the country as well," said Circulate Capital founder and chief executive Rob Kaplan in an interview with Mint. "There's been strong extended producer responsibility (EPR) regulations in place for over a decade and that has now evolved into mandatory recycled content regulations as well."

The firm announced a first close of $220 millio...