CVF Invests in BC2 Environmental

Partnership to drive continued growth in innovative environmental and geotechnical drilling company in California and the Western US

Orange, CA. January 24, 2019 – CVF Capital Partners (“CVF”), a private equity fund headquartered in Northern California, with offices in San Diego, CA and Portland, OR, has acquired BC2 Environmental ("BC2" or the "Company").

BC2 is a leading provider of environmental and geotechnical drilling solutions to California based government organizations, environmental consultants, real estate developers, and other corporations. BC2's management team, led by industry veteran, Kurt Samuelson, will continue to run the business. The additional capital resources and liquidity from the investment will be used to expand operations throughout California and neighboring western states.

Based in Orange, CA, BC2 was formed in 1995 and has grown to become one of the leading environmental drillers in California. The Company serves a blue chip customer base that requires extensive drilling for monitoring groundwater safety, soil remediation and real estate development. The extensive investment in California infrastructure as a result of the new fuel tax, the advent of the 2028 Los Angeles Olympics, and the Los Angeles Rams football stadium represent a massive amount of investment providing the company a solid tailwind.

Environmental and geotechnical drilling has become standard practice worldwide – and, in many cases, a requirement – for any major redevelopment or construction investment. It’s a relatively economical and extremely accurate means of getting the most complete picture possible of subsurface conditions for any large structure, including buildings, bridges, dams, mines and oil rigs.

The company maintains an extensive and diverse fleet of drilling rigs including rotary drills, augers, close-in drills, and sonic drills. This wide variety of drilling capabilities allows BC2 to handle virtually any type of terrain and environment in order to serve its customers.

According to Kurt Samuelson, CEO of BC2, "We have experienced tremendous growth over the past five years, and are committed to building a top tier company. Partnering with CVF bring us the experience and resources that will help take BC2 to the next level."

"Environmental drilling has been our focus in California for decades but the explosive growth and anticipated expansion throughout the state and neighboring states demand that BC2 transition with expanded capabilities and enhanced services. We look forward to working with CVF to capture this huge opportunity for our business," said Samuelson, who co-founded BC2 25 years ago.

"BC2's innovations, equipment assortment, and service levels in environmental and geotechnical drilling provide extraordinary economic and environmental value for their customers," said Stefan Okhuysen, Principal at CVF. "We are truly excited to partner with BC2's excellent management team to continue their growth and expand their scope of services."

"The BC2 team has built a best-in-class service business that understands their customer needs and addresses them in a high value-add, low cost manner," said José Blanco, Managing Partner and co-founder of CVF. "We at CVF specialize in California businesses that can capture the opportunities afforded by the state’s dynamic economy, and BC2 is a true innovator and consistent operator in the field."

For more information contact:

Kurt Samuelson

President and CEO

BC2 Environmental, LLC

Tel: (714) 744-2990

Email: ksamuelson@bc2env.com

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.