Closed Loop Partners Backs LEI Packaging’s Expansion,...

New York, NY, November 11, 2026 - Closed Loop Partners today announced a multi-million-dollar loan to LEI Packaging ("LEI"), a molded fiber packaging manufacturer based in Chisago City, Minnesota. Provided by the firm's Catalytic Capital & Private Credit strategy, the financing supported the construction of LEI's newly completed second production facility, which is expected to use thousands of tons of post-consumer recycled fiber as feedstock.

Founded in 2014 by Paul and Katie Johnson, LEI has grown significantly over the past decade to supply farms and co-ops across the country with molded fiber egg trays and cartons made from recycled paper. The new facility, supported by Closed Loop Partners' loan, now includes a de-trashing system that will allow LEI to process post-consumer recycled fiber bales for the first time, in addition to the post-industrial material it currently uses at its first facility.

This expansion comes as consumer and food brands, manufacturers, farms and agriculture customers increasingly look to paper packaging to support their circular packaging goals--making investment in fiber recovery and reprocessing infrastructure critical to keeping pace. The new facility positions LEI to meet rising demand for curbside-recyclable fiber packaging alternatives, while adding end-market capacity for recycled paper fiber and boosting U.S. supply.

"As more of the packaging industry looks to paper and fiber-based materials to support their circularity goals and meet regulatory requirements, we have to build the recycling infrastructure to support that shift," said Tazia Smith, CEO of Closed Loop Capital Management, the investment firm of Closed Loop Partners. "LEI is a strong example of a family-owned manufacturer investing in the equipment and processes needed to bring more recycled fiber into circulation, and we're proud to support that growth."

The investment reflects Closed Loop Partners' continued focus on backing the growth of domestic recycling infrastructure and remanufacturing capacity, and developing responsible end markets for recycled commodities.

"We continue to see the growing market opportunity for fiber packaging that can be recovered for remanufacturing, increase efficiency and reduce waste. Expanding our capacity at this point is critical to continue meeting market demand," said Paul Johnson, Co-Founder of LEI Packaging. "The capital from Closed Loop Partners, and their team's experience working with operators, helps us build the capacity to use even more recycled material and meet the demand we're seeing from our customers."

Beyond the environmental case for molded fiber, the project is also expected to generate local economic impact, including approximately 20+ jobs and roughly 15 construction and development jobs tied to the new facility.

"LEI Packaging's growth to date demonstrates the path to scale in the recycled fiber packaging space and reinforces the growing role of molded fiber as a viable, cost-competitive alternative to materials like foam," said Ray Hugel, Managing Director and Co-Head of the Catalytic Capital & Private Credit strategy at Closed Loop Capital Management. "We are proud to back an independent, family-run manufacturer and provide them with the catalytic capital and network needed to support their expansion."

Closed Loop Partners' loan to LEI Packaging builds on several key investments from the firm's catalytic capital group to fiber packaging manufacturers, as well as processors and end manufacturers of recycled resins including polypropylene (PP), polyethylene (PE), polyethylene terephthalate (PET) and aluminum. The group seeks to strengthen markets across key packaging types, bolstering recyclable material supplies as the market moves away from non-recyclable packaging.

Following this investment, Closed Loop Partners intends to continue deploying capital across circular economy companies, technologies and municipalities, seeking to keep more valuable materials, including recycled fiber, in circulation. Through its private equity, venture capital, and catalytic capital & private credit strategies, Closed Loop Capital Management is positioned to support manufacturers building the supply chains behind the shift to more sustainable packaging.

If you are interested in applying for funding from Closed Loop Partners, please visit here.

About LEI Packaging

LEI Packaging, LLC is a molded fiber packaging manufacturer based in Chisago City, Minnesota. Founded in 2014 by Paul and Katie Johnson, LEI supplies farms, co-ops, food brands and other agricultural customers with 100% recyclable, molded fiber egg trays and cartons manufactured using recycled paper feedstock.

LEI is based in Chisago City, Minnesota. To learn more, visit www.leipackaging.com.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, private equity and catalytic capital and private credit investment strategies, Closed Loop Capital Management; an innovation center, the Closed Loop Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm's catalytic capital and private credit investment strategy provides flexible and risk-tolerant capital to support private companies, organizations and municipalities to launch or develop projects, ultimately aiming to attract further investment and meet the criteria of driving net positive environmental and social outcomes.

Closed Loop Partners is based in New York City and is a registered B Corp. To learn more, visit www.closedlooppartners.com

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