The partners plan to raise $500m from institutional and other accredited investors as part of the initiative.
LOIM will manage the circular plastic fund, while the AEPW will serve as a cornerstone investor and technical adviser for it.
The fund will be used for various initiatives, including collection, sorting and technology-enabled recycling infrastructure and designing solutions to increase plastic durability, reuse and recyclability.
In addition, it will facilitate the production of materials that can be treated more conveniently than plastics.
Through its team of experienced professionals, the AEPW will provide expert advice on the technical feasibility, commercial viability and scalability of plastic circularity solutions, as well as waste management technology and infrastructure.
AEPW president and CEO Jacob Duer said: “Our goal in partnering with Lombard Odier in relation to a circular plastic strategy is to grow investments in solutions that can help end plastic waste and contribute to a circular economy.
“The strategy harnesses the collective intelligence of the plastic value chain and connects it with capital, bringing much-needed solutions to scale.
“I am confident this will help focus financial market attention on the investment opportunity that plastic circularity represents and help to catalyse multiple sources of financing for investments in circular solutions for plastic waste.”
LOIM co-head and Lombard Odier Group managing partner Jean-Pascal Porcherot said: “LOIM is proud to be partnering with the Alliance to build and manage a ground-breaking fund that addresses the plastic circularity issue with true solutions.
“This important mandate reflects the shared values between the Alliance and LOIM, and recognises our deep expertise and highest credentials in sustainable investing.
The AEPW was launched in 2019 and its portfolio includes more than 35 projects across 29 countries.