Central Valley Fund III Closes $200MM Mezzanine Fund

Davis, CA (April 11, 2018) – CVF Capital Partners (“CVF”), the manager of the Central Valley Fund, today announced the final closing of its latest mezzanine fund, The Central Valley Fund III (SBIC), LP (“CVF III” or “the Fund”). The Fund has $200 million of total committed capital, which it will deploy as mezzanine debt and equity capital to the lower-middle market. CVF will invest across a broad range of sectors and geographies in the Western U.S., with a particular focus on California and the Central Valley. In an effort to better serve Southern California and the Pacific Northwest, CVF recently opened offices in San Diego, CA and Portland, OR.

CVF III’s size and scale allows it to focus on the under-served lower middle market, while its flexible structure enables CVF to continue its creative approach to solving a company’s particular capital needs. With its proven expertise in deal origination, credit selection, and deal structuring, CVF is consistently selected as a partner of choice by companies, banks, and private equity firms seeking capital for acquisitions and other important strategic initiatives.

CVF has been investing in California and throughout the Western U.S. since 2006, including financing several local California Central Valley acquisitions, expansions, and recapitalizations. The partners of CVF bring broad expertise to this market, having collectively deployed capital into middle market transactions over the last 35 years. Brad Triebsch, Managing Partner and Co-founder of CVF, said; “We appreciate this vote of confidence from our investors, many of whom have been with us since our founding. We look forward to investing this capital in promising companies, while continuing our consistent track record of strong investment returns for our limited partners and their constituents. We have a healthy pipeline of opportunities and will put this additional capital to work by continuing to partner with management teams, private equity sponsors, commercial banks, and other deal professionals.”

The Fund’s mission is to provide flexible junior capital (subordinated debt and preferred equity) to companies with at least $10 million in revenue and $2 million of cash flow. CVF III will build on the experience of its predecessor funds, investing in an array of industries, including: business and government services, industrial manufacturing, aerospace, telecom, healthcare, distribution and logistics, food and beverage, and others. CVF III’s new presence in San Diego and the return of Stefan Okhuysen as a Principal will further the Fund’s commitment to the Hispanic business community and cross-border opportunities.

Ed McNulty, a CVF Managing Partner, mentioned, “We have a successful track record as patient, long-term investors committed to working closely with sponsors and company management teams to create stable capital structures and optimal investment outcomes for all parties. We look forward to continuing this legacy throughout CVF III.”

About CVF Capital Partners and The Central Valley Fund CVF Capital Partners and The Central Valley Fund (CVF) was established to finance later stage growth through mezzanine and preferred equity investments in lower-middle market businesses managing over $350 million in committed capital since 2005. The Fund has offices in California – Davis, Fresno, and San Diego and in Portland, OR. CVF is focused on making investments in California and throughout the Western U.S. For more information, please visit www.cvfcapitalpartners.com.

Huntsman Venture Forum – March 23, 2018

Jon M. Huntsman School of Business at Utah State University and CVF Capital Partners to co-sponsor the Huntsman Venture Forum – March 23, 2018

The Huntsman Venture Forum will bring together CEO’s, banks, venture capital, private equity, accounting, and legal partners to provide insights on growing business ventures in all phases.

The event will include:

• Managing Complexity and Sustaining Growth – A “mountainside” chat with Ken Coleman – Chairman of Saama Technologies

• Entrepreneurial Success in Utah

• Growth in the Trenches – A diverse CEO panel on managing growth at various stages

• Relevant Breakout Sessions

  • Access to Capital – Debt and Equity Financing

  • Top Challenges to Growing Ventures

  • Intellectual Property and Legal Structure

• Power Presentations

  • Business Transitions

  • How Culture Drives Growth

  • Leveraging Technology and Supply Chains

  • Tools for Growth

• Company Showcase – Pitch competition judged by expert panel

• Opportunities to network and learn

Event date and location:

Friday, March 23, 2018

8:00am – 4:30pm

Perry Pavilion – Jon M. Huntsman School of Business

Utah State University

976-1004 E 550 N

Logan, UT 84321

(435) 797-2272

Central Valley Fund Announced as First Investment of the $100 Million Quality Jobs Fund

Investment will be deployed throughout California and surrounding states to provide growth capital and fuel job creation

STOCKTON, CA – The Quality Jobs Fund, which was created by the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) and is led and managed by the New World Foundation (NWF), today provided its first investment – $5 million to the Central Valley Fund. The Davis-based investment firm provides flexible capital solutions that facilitate the expansion of small- and medium-sized businesses, creating quality jobs and training employees for better positions.

A press conference was held this morning at Utility Telecom in Stockton, which has received $8.75 million from the Central Valley Fund to help expand its operations.

“Many companies like Utility Telecom can expand and create quality jobs if they have access to capital,” said José Blanco, Managing Partner at the Central Valley Fund. “We thank FHLBank San Francisco for making this extraordinary commitment to workers.”

FHLBank San Francisco seeded the Quality Jobs Fund (QJF) with a $100 million charitable contribution to facilitate quality job creation, finance small business expansion, and support job training in its three-state district of Arizona, California, and Nevada, and in other communities nationally. The groundbreaking initiative will improve the wealth-building potential of working families, help generate future homebuyers, and serve as a catalyst for sustainable, long-term community development programs, especially those in underserved communities.

Specifically, the QJF is supporting innovative programs that upskill low-income workers in vital industries and that finance the expansion of businesses creating quality jobs. QJF investments will focus on helping to increase wages for working families, thereby increasing the pool of potential homebuyers and helping sustain vibrant communities.Rep. Jerry McNerney (D-CA 9) noted that FHLBank San Francisco was charted by Congress to help local lenders invest in jobs, housing, and economic growth in their communities. “Through an ongoing partnership with FHLBank San Francisco,” he said, “we can attract more investment and resources to our area, and I look forward to continuing to work together to expand economic development opportunities in our community.”

Stockton Mayor Michael Tubbs said the Quality Jobs Fund can provide critical access to capital for small businesses. “For too long, our nation has overlooked small businesses, which are the economic engine creating jobs,” he said. “Stockton residents appreciate the investments that are strengthening our community. The FHLBank San Francisco should be applauded for being a good corporate partner to small businesses and their workers.”Moreover, Greg Seibly, President and CEO of FHLBank San Francisco, said that after two years of research it became clear that fresh ideas were needed on how to increase the pool of potential homebuyers and that effort had to fortify the financial security of working families.

“The U.S. economy struggles to create quality jobs that offer wages high enough to allow working families to purchase homes in safe, nurturing communities where they can raise their families,” he said. “FHLBank San Francisco began this process two years ago with research on what strategies best fuel successful job creation and small business expansion. It’s exciting to move ahead and start supporting programs and seeing results that will enhance the quality of life for working families.”

The Central Valley Fund’s investments in companies like Initiative Foods in Sanger, CA, sustain and create quality jobs for their workers.

After growing up in the Los Angeles area, Antonia Flores moved to the Central Valley in 2004, where the high school dropout with four daughters began working at Initiative Foods as an inventory clerk earning $10 an hour. Ms. Flores, now 48, got her GED, took accounting classes at a community college, and now earns $26 an hour as an inventory accounting supervisor, overseeing much of the company’s accounting work. She is putting her two oldest daughters through college.

“Give people a chance,” Ms. Flores said, “I would love it if more investments helped small companies be successful…when we see support, it gives us that light of hope. Knowing that we’re not alone, and we have helped is motivating. It’s hard for small businesses to get help. There are a lot of people who have dreams, not just for themselves, but for their employees. Helping small businesses means helping the communities they are in.”

Citing the QJF investment in Central Valley Fund, Lawrence H. Parks, Senior Vice President, Legislative and External Affairs, for FHLBank San Francisco, called it critically important to make investments with companies with track records in expanding quality jobs. “There is so much that is not working,” Mr. Parks said. “The Bank understands that the health of a community depends on creating more quality jobs and increasing homeownership. That scenario gives residents a stake in the well-being of their neighborhood and a path to make their communities strong and sustainable.”

Colin Greer, President of the NWF, applauded FHLBank San Francisco, saying the QJF will enhance the quality of life for working families. “The decision by FHLBank San Francisco to imagine, finance, and bring into being this investment in the futures of children and families in our nation’s low-income communities sets an important example for corporate leaders in the banking, finance, and philanthropic sectors,” he said.

For additional information, please visit the Quality Jobs Fund Website: http://qualityjobsfund.org/live-quality-jobs-fund-press-conference/

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. Please visit: http://www.fhlbsf.com.

About the New World Foundation

The New World Foundation, an endowed public charity, is committed to unparalleled national and global on-the-ground philanthropic expertise. Please visit: https://newwf.org.

About Central Valley Fund

The Central Valley Fund was established in 2005 to finance later-stage growth and expansion and buy-out opportunities of small businesses through mezzanine debt and preferred equity investments with over $350 million in committed capital across three funds. For more information, please visit www.cvfcapitalpartners.com.