Thesis’ background This thesis intends to contribute to the literature gap identifying when connecting the literature on capabilities required for the transition towards circular business models and the literature that investigates the value creation and capture in these business models. Research aim Identifying the key capabilities that facilitate the transition towards circular business models and investigating their use for value creation and capture Methodology A qualitative approach was followed, and semi-structured interviews were conducted with four managers working at companies that are experiencing circular business models Findings Eight key capabilities were identified from this research including: (1) Developing the systemic thinking, (2) Managing the circular network,(3) Managing knowledge, (4) fostering open innovation, (5) Understanding customer’s requirement for exploring the wasted value, (6) Designing products for longevity, (7) Innovating in the sale and use phase and (8) managing circular suppliers to close the loops between the end use and the production. Deploying these eight key capabilities with a systemic thinking would enable companies moving to circular business models and creating and capturing economic and non-economic sustainable values.