CVF Capital Partners Makes Co-Investment with DCA Partners in Bonafide Medical Group

Bonafide Medical Group Expands Operations

THOUSAND OAKS, CA (August 17, 2022) – Bonafide Medical Group (“Bonafide”), a leading business workflow management and facility portal for the Durable Medical Equipment (“DME”) and Home Medical Equipment (“HME”) industries, announced today a joint investment from CVF Capital Partners (“CVF”) and DCA Capital Partners (“DCA”).

Steve Mills, Partner at DCA, said, “It is an honor to partner with a rapidly growing company led by a talented management team. Their continuous innovation has resulted in steady growth with a client pipeline that’s stronger than ever. We hope to build on that success by helping Bonafide take advantage of previously untapped opportunities. Partnering with CVF will help Bonafide continue their growth.”

Jose Blanco, Founding and Managing Partner at CVF, said “We are excited to be partnering with DCA on this investment. DCA originally invested in Bonafide with the goal of further extending Bonafide’s features and functionality and to expand its distribution channels. We hope to help support this expansion.”

“We have been extremely impressed with Mark Ludwig, Bonafide’s CEO, on his vision and execution; we look forward to working with Mark, Bonafide, and the DCA team in this investment,” said Brian Hoblit, Vice President at CVF Capital Partners.

About Bonafide Medical Group

Bonafide Medical Group (“Bonafide”) is a cloud-based healthcare information technology company. With 40 years of experience in healthcare, Bonafide provides enterprise resource planning platforms that provide comprehensive management solutions in the acute and post-acute care settings. Bonafide was founded in 1981 and is based in Thousand Oaks, California. For more information, please visit www.bonafide.com.

About CVF Capital Partners

CVF Capital Partners (“CVF”) was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity and has raised $385 million in committed capital across its three funds. The firm focuses on supporting small businesses undergoing a ownership transition or looking for growth throughout the broader Western United States. For more information, please visit www.cvfcapitalpartners.com.

About DCA Partners

DCA Partners (“DCA”) provides capital to growth-oriented, middle-market businesses in under-served communities across California and other western states. DCA partners with top-quality owners and management teams, providing the capital and expertise needed to successfully expand their businesses. For more information, please visit www.dcapartners.com/.

For More Information, Contact:

Jose Blanco, Managing Partner

CVF Capital Partners

Tel: (530) 757-7004

Email: jblanco@cvfcapitalpartners.com

CVF Capital Partners Supports the Acquisition of Cordant Health Solutions

FLAGSTAFF, AZ (April 10, 2023) – CVF Capital Partners (“CVF”) supported the acquisition of the Toxicology Direct Bill (“Direct Bill”) division of Cordant Health Solutions (“CHS”). The Direct Bill division provides drug testing and lab services for parole agencies, probation and drug courts as well as medication-assisted and abstinence clinics. As part of the transaction, CVF co-invested with DCA Capital Partners (“DCA”) to acquire CHS from a financial institution, who has been the owner since 2013. The other two divisions are the Toxicology Clinical and Pharmacy divisions, which did not form part of this transaction. The Direct Bill division experienced continuous growth in the last 15 years and have expanded to cover clients in 46 different States in the US. The carve-out will retain the name and logo of Cordant Health Solutions.

Steve Mills, Founder and Partner at DCA, said, “We are excited to partner up with a strong management team that has decades of experience in the industry and have built an organization that is ready to scale. The Company has a strong record of delivering their lab services to clients in better than industry average turnaround times thanks to its advanced IP capabilities to track millions of samples a year as well as its best-in-class lab specialists.”

José Blanco, a Founder and Managing Partner at CVF Capital Partners, said, “Cordant is essential in monitoring drug use and ensuring compliance with court-ordered drug treatment programs. Its services will continue to be needed to track the presence of new and dangerous illegal drugs that are constantly entering the market. The Company plays a critical role in preventing drug use, protecting public health, and ensuring safety in the society. The increase in the consumption of these drugs over the years has led to an increase in drug testing to treat and help increase the number of returning citizens to society and reduce if not abate recidivism. We are also excited about continuing working in another transaction with DCA after partnering up for an investment in Bonafide Medical Group last year.”

Brian Hoblit, Principal at CVF Capital Partners said, “We like the industry given the recession resistant aspect about it as well as reliable customer base where some of them had a contractual relationship with Cordant for up to 17 years. There are also different growth opportunities that we hope we can assist management to accomplish them during the holding period.”

About Cordant Health Solutions

Cordant Health Solutions is a leading US-based provider of medication monitoring and drug testing services. Founded in 1997, Cordant offers a wide range of testing solutions, including urine, saliva, and hair drug testing, as well as genetic testing and medication monitoring. Their services are used in addiction treatment centers, pain management clinics, behavioral health facilities, and drug courts, and are staffed by highly trained scientists and technicians who use the latest technology to provide accurate and reliable test results. To learn more, please visit www.cordantsolutions.com.

About DCA Partners

DCA Partners is an alternative asset manager and advisory firm based in Sacramento, CA. DCA’s private equity fund is focused exclusively on investing in and acquiring profitable growth businesses in partnership with great management teams. To learn more, please visit www.dcapartners.com.

About CVF Capital Partners

CVF Capital Partners was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity and has raised $385 million in committed capital across its three funds. The fund has offices throughout California in Davis and San Diego. This geography allows the firm to attend to small businesses seeking capital throughout the broader Western United States. To learn more, please visit www.cvfcapitalpartners.com.

For More Information, Contact:

Jose Blanco, Managing Partner

CVF Capital Partners

Tel: (530) 757-7004

Email: jblanco@cvfcapitalpartners.com

CVF Capital Partners Exits its Investments in LightRiver Technologies and Software

CVF Capital Partners provided Subordinated Debt and Equity Financing to Support the Company’s Growth

CONCORD, CA (March 31, 2022) – CVF Capital Partners (CVF) exited its investment in LRT Holdings, Inc. (“LRT” or “LightRiver”) as LRT announced today the sale of the company to a financial buyer. CVF Capital Partners invested a combination of subordinated debt and equity financing from The Central Valley Fund II in November 2015 to support the Company’s rapid expansion plan and further debt financing in June 2017 to acquire LightRiver Software. Financial terms have not been revealed.

LightRiver delivers carrier-grade transport network solutions, including certified design, professional staging services, deployment services, and network automation products to over 150 clients in North America and Europe. The business offers full lifecycle hardware, software, services, and support solutions in multi-technology networking. It specializes in the design, procurement, delivery, and ongoing technical support of heterogenous transport networks and the open software tools to discover, monitor, provision and control multi-vendor packet optical networks.

CVF worked with management, Plexus Capital and Muir Equity to acquire the company from its founders in late 2015. In 2017, both funds supported LightRiver with additional debt investments to acquire LightRiver Software in Holmdel, NJ. This acquisition included what became one of LRT’s flagship products in netFLEX, which enables telecommunications carriers and enterprises to efficiently manage network systems of any size over a broad range of different vendors and technologies.

Glenn Johansen, CEO: “It has been a pleasure working with the CVF team over the past few years as we have been able to grow LightRiver into a more well-rounded software-focused business. They assisted with financial and strategic decisions throughout our partnership and were critical in our acquisition of LightRiver Software.”

According to Ed McNulty, Managing Partner at CVF Capital Partners, “We are delighted to have supported such an experienced management group. Glenn and team were great partners and their dedication led to LRT’s growth as a software service provider, while maintaining their excellence in hardware solutions.”

About LightRiver

LightRiver is the premier provider of next generation, multi-vendor, Factory Built Networks® and netFLEX® vendor neutral, Optical Domain Control Software solutions. LightRiver is an expert in Packet Optical, DWDM/ROADM, MPLS and Carrier Ethernet systems and designs, engineers, commissions, automates and supports next generation, software controlled, transport networks for mission-critical clients that require the highest capacity, reliability, resiliency and manageability that today’s optical communications technology can deliver. LightRiver delivers unique value with turnkey hardware and software solutions, carrier-grade quality and unparalleled customer care in multi-technology networking.  For additional information about LightRiver, please visit www.lightriver.com.

About CVF Capital Partners

CVF Capital Partners was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity from the $385 million in committed capital it has raised across three funds. The fund has offices throughout California – Davis, Fresno and San Diego. This geographical footprint allows the firm to attend to small businesses seeking capital throughout California and the broader Western United States. For more information, please visit www.cvfcapitalpartners.com. 

For more information contact:

Ed McNulty

Managing Partner

Email: emcnulty@cvfcapitalpartners.com

Phone: 530-757-7004 ext. 226