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 Investment Criteria
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 our targeted geographic region—the California Central Valley (see map to right). 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.
CVF will also review those situations in which companies do not meet the stated criteria if the firm can demonstrate a compelling rationale.
Investment Structure
Central Valley Fund 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.
Proposals
We encourage companies that meet our Investment Criteria to submit a financing proposal.
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