Siddhi Capital's Journey: From Operational Consulting to Growth Equity Investment

Siddhi Capital, a growth equity firm specializing in the food and beverage industry, has its roots in operational consulting. Melissa Facchina, co-founder and managing partner, began her career in her family's juice manufacturing businesses, where she honed her skills in operational efficiency. Witnessing the evolving food system and the growing demand for transparency and quality, she established Siddhi Services, an outsourced operating consultancy firm.

• Siddhi Services gained extensive experience by assisting over 500 food and beverage companies in scaling their operations.
• The firm successfully helped 93 companies navigate their exit strategies.

Transforming Investment Practices with Operational Expertise

Facchina observed a disconnect between investors and investees in the food and beverage sector. Investors often made unrealistic demands, setting unrealistic timelines for companies that lacked the necessary scaling expertise.

• This led to companies providing misleading information to investors, driven by fear of negative outcomes.
• Facchina recognized the need for a more effective approach to investment that bridged the gap between operational realities and investor expectations.

Siddhi Capital: A Unique Investment Model

Siddhi Capital emerged as a solution, offering a unique investment model that blends operational expertise with growth equity. The firm focuses on investing in consumer packaged goods (CPG) and food tech companies with a proven track record.

• The firm's portfolio includes notable brands such as Aura Bora sparkling water, Thistle food delivery, Mid-Day Squares chocolate snacks, and Magic Spoon cereal.

Fund I: Rapid Success with Strong Support

Siddhi Capital successfully closed its first fund, raising nearly $70 million. The remarkable speed of the fund's closure, achieved in just one hour, was attributed to the firm's strategic partnerships and Brian Finn's influence as the chairman.

• Brian Finn, former CEO of Credit Suisse USA, contributed significantly to the fund's success through his network of high-net-worth individuals.

Fund II: Navigating Market Challenges

Despite facing challenges related to the Ukraine war, Siddhi Capital closed its second fund, raising $135 million. The fundraising process took two years due to market volatility, but the firm retained the support of its existing investors, with a remarkable 98% reinvestment rate.

• The firm's focus on operational expertise and its successful track record with Fund I provided confidence to its investors.

Investment Strategy: Growth Equity Focus

Siddhi Capital's investment strategy has evolved, transitioning from early-stage companies to a more growth equity focus. The firm aims to invest $5 million to $10 million in companies generating between $25 million and $100 million in revenue.

• The majority of investments will be directed towards consumer packaged goods companies, with a smaller portion allocated to food tech companies operating in areas like fermentation and cellular agriculture.

Siddhi Capital's Impact: Transforming the Food and Beverage Investment Landscape

Siddhi Capital's unique approach to investment, blending operational expertise with growth equity, is shaping the food and beverage investment landscape. The firm's dedication to supporting companies with a focus on operational excellence is driving positive change in the industry.

• Siddhi Capital's success demonstrates the value of a holistic investment strategy that considers operational realities and investor expectations.