Mindful Taps New Fund for Organic Girl Deal

Dow Jones VentureWire

May 14, 2009

by Jonathon Matsey

On the heels of a $25 million first close of its debut fund, Mindful Investors has made its fourth deal with a $2 million investment in Big Idea Holdings LLC, a food distributor doing business as OrganicGirl, VentureWire has learned.

Stuart L. Rudick, partner at Mindful, said the firm, which specializes in consumer-oriented natural and organic companies, is looking to raise between $50 million and $100 million for the fund, Mindful Investors Fund I LP. "We began as a pledge fund, with our own money," he said. "But now, we are raising money from outside investors."

Rudick said the firm closed on $25 million in the first quarter of this year from undisclosed limited partners. He said the firm is set to have a second close within the next 30 to 60 days. The planned date of a final close was not given.

OrganicGirl, based in Salinas, Calif., was founded in late 2007 by several executives from the Fresh Express unit of Performance Food Groups Co. Fresh Express was a prepackaged salad maker acquired by Chiquita Brands International Inc. in 2005.

OrganicGirl offers a line of organic salad greens and other vegetables stored in biodegradable containers made from corn. Rudick said the produce also has high-tech components, such as varying degrees of nitrogen levels depending on the speed of decay of the vegetable enclosed.

Despite being a young company, OrganicGirl has been profitable nearly since inception and had $20 million in revenue last year, Rudick said. "The founders have put in well over $10 million on their own," he said. "And I believe we will do a second round of financing with the company."

OrganicGirl is currently selling in chains including Safeway, Wal-Mart and Whole Foods Market, but Rudick said his firm will look to help the company expand. "The money is to start getting the OrganicGirl brand in much bigger distribution," he said.

OrganicGirl will be able to benefit from Mindful's experience. An offshoot of Mindful Partners, a hedge fund Rudick founded in 1993, Mindful Investors specializes in natural and organic companies requiring between $2 million and $5 million in capital. The firm has made three investments out of the fund to date: seafood distributor CleanFish Inc., environmentally friendly cleaning supply company Seventh Generation Inc. and green building material company EcoHaus Inc.

>Back