The Investment Process

Central Valley Fund ("CVF") seeks to invest in:

• Later-stage companies experiencing a financing event and seeking expansion capital, acquisition capital, or capital to refinance the business.
• Companies with principal operations in California, especially within our targeted geographic region—the California Central Valley. CVF will also selectively consider transactions from companies outside the region.
• Companies in business at least 5 years with at least 3 years prior audited financial statements.
• Companies with at least $5M in sales and a strong competitive position.
• Companies with a strong management team in place or previously identified as part of an acquisition. Meaningful management ownership stakes and appropriate incentives are important.

The Central Valley Fund's investments will be made under the following general terms and conditions:

• Investment size is typically $1M-$5M per transaction with larger commitments possible through co-investment with other funds.
• Preference for subordinated debt, but will consider preferred equity where appropriate.
• Repayment is typically a 5-year term.
• Board seat or observation rights. We do not seek control nor take an active management role, but act as financial partners and strategic advisors.
• A subordinated lien on all assets and in most cases a stock pledge.

We encourage companies that meet our Investment Criteria to submit a financing proposal. We will need the following information to expedite the initial review: