An entrepreneurial private equity firm solely focused on food and agriculture
About usBased in the Netherlands, at the heart of the European food and agriculture industry, we are passionate about investing in and building exceptional companies in this critical industry.
Signet Ingrediens has been founded by experienced professionals with complementary backgrounds and successful track records in investing and operating food and agriculture assets:
Experience across Europe and Central Asia in farming, food processing, and food retailing.
Investment team supported by Signet Asset Management
Senior leadership
Alex Petrov
Managing Director Russia / Agro Director Netherlands, McCain Foods.
Managing Director, 28,000 hа irrigated farm (vegetables and cereals).
Vice President, ING Bank.
Roberto Vitón
Founder and Managing Director, Valoral Advisors.
15+ investment advisory work in the global food and agriculture sector.
Several previous corporates roles in consulting and natural resources
sector across Europe, Middle East, Latin America and North America.
Investment strategy
Our goal is to achieve top quartile returns for our investors by investing in and building high-growth, profitable companies that contribute to developing more sustainable and efficient food production systems.
Investment themes
The global food and agriculture industry is a massive production platform and a critical backbone for some of the most basic human needs, and is poised for transformational changes in the decade ahead.
We believe the sector is very well suited for a thematic investment approach. Thematic investing requires a fundamental understanding of the impact of long-term economic, political, and social trends on regions and sectors, which reveals investable opportunities.
By developing the first, second and even third-order effects of structural trends it is possible to identify hot spots or discontinuities in certain sectors and regions where value and risk will be concentrated.
Today, a number of powerful and transformative trends have the potential to change the global economy, business and society. They have in common that they transcend sectors, industries and countries and evolve and endure irrespective of the economic cycle.
These trends – centered around demographics, economics and technology – can be catalysts for change driven by the management of dwindling resources, the demand for better nutrition, and technology innovation, in a context where a new geopolitical balance emerges and developing markets will dominate the growth in food consumption and will attract a growing share of investments.
The team is focused on identifying and assessing the most relevant investment themes that arise from these trends as well as translating those themes into investable opportunities.
Investment approach
We look to build successful industry platforms in sectors benefiting from the transformational changes happening in the sector, taking relevant positions in companies that can become market leaders and supporting their sustainable growth with capital, industry, and functional expertise.
We look for opportunities that can align well with the structural changes happening in the industry:
- Regional integration plays (e.g., vertical integration, nearshoring opportunities, food independence, multiple sourcing).
- High growth categories (e.g., ag inputs, high value crops, frozen food, novel ingredients, specialty food, plant-based proteins).
- Sustainability drivers (e.g. processing efficiencies, supply chain improvements, biomass upcycling).
- Generational transfer of wealth (more acquisition opportunities in farming and processing assets).
The fund’s strategy is focused on pursuing these emerging opportunities to build sustainable food production systems with a global, integrated investment strategy.
We target relevant minority or controlling positions in established and profitable lower middle-market businesses:
- $ 5-30 Million tickets for 25-100% equity stakes, with a target of completing 5 to 8 investments in 2 or 3 thematic platforms.
- Investing in the fragmented lower-middle market, which needs capital to grow and offers a less crowded investment landscape.
Value add
The team looks to partner with highly capable entrepreneurs and management teams, working hand in hand with them.
We spend considerable time and effort before investing – conducting in-depth assessments of the markets in which we focus and the unique aspects of the companies in which we invest – as well as after the investment – working closely with our partners and contributing with different value enhancement levers.
We offer our knowledge, network and experience in a broad range of topics as a catalyst for creating strategic value and accelerating growth.
Consolidation and integration
Looking for opportunities in markets which are ripe for consolidation and where vertical integration can provide additional value.
Geographic arbitrage
Investing in and scaling businesses which can benefit from an international footprint, both for sourcing raw material as well as for marketing and selling end products.
Professionalization
Helping to build best-in-class teams and operations that can excel in their markets and drive value creation.
Sustainable profitability
Promoting and prioritizing sustainable business models and operations that contribute positively to solve the major sustainable challenges of our industry.
Innovative mindset
Embracing innovation in all areas of the businesses in which we invest, with an active approach to adopt technological innovation that can unlock the potential in the business.
Investment criteria
We are focused on identifying and sourcing private equity investments in high-quality lower middle-market food and agriculture companies that are reasonably valued and that demonstrate potential for substantial capital appreciation through improved operational and financial performance, and enhanced strategic positioning.
What we do:
- Lower middle-market companies with annual revenues of €5 to €50 million, top management, proven growth model, and opportunities for scale-up and consolidation.
- Agriculture assets in emerging markets with unique attributes, attractive value, existing irrigation or with irrigation potential, competitive cost position, a conducive local investment environment, and with fit to be integrated into a processing platform.
- Profitable with attractive margins or on a clear path to profitability and with limited leverage.
- Companies within our priority sectors, incl. high-value and specialty crops, food ingredients, frozen food / fruit / vegetables, snacks, ethnic food, plant-based proteins, specialty / gourmet vegetable products, and new food categories.
- Focus on Western and Eastern Europe and a global scope including Central Asia, South America, and Africa.
What we don’t do:
- No pre-revenue companies.
- We don’t invest in unprofitable companies, unless there is a clear path to profitability.
- We avoid distressed asset and distressed situations.
Goodness Foods International Fund
PortfolioSignet Ingrediens is the investment Advisor to Goodness Foods International Fund, a Luxembourg-based, private equity fund with initial commitments of $100 Million and with a target of raising $200 Million. The investment team has strong origination capabilities through its vast, global network, and is currently assessing a number of opportunities to deploy capital. We invite you to reach out to us if you would like to discuss an investment opportunity which is well aligned with our investment strategy and criteria.
