Investing

Investment Criteria

CVF Capital Partners seeks to invest dynamically in small to medium-sized businesses in a range of industries across the Western U.S. CVF can provide both debt and equity capital and invest as a majority or minority owner in flexible and creative capital structures, either as a standalone investor or with investment partners.

Our transaction types include the following:

• Management buyouts
• Growth or expansion capital
• Recapitalizations
• Merger or acquisitions

Our target companies generally fit the following criteria:

• Principal operations in the Western United States, most commonly in California or the Pacific Northwest. CVF will selectively consider transactions outside the Western U.S.
• In business at least five years, with a minimum of three years of prior financial statements
• Revenues of $10M -$100M and a strong competitive position
• Strong management team either in place or previously identified as part of an acquisition. Meaningful management ownership and appropriate incentives are an important in CVF transactions

CVF will also review those situations in which companies do not meet the stated criteria if the firm can demonstrate a compelling investment rationale.

Industry Focus

At CVF, we have a broad focus and have invested in many different industries. Over time, we have developed particular expertise in the following areas:

• Business Services
• Distribution
• Manufacturing

Investment Structure

We customize our investment structure to fit the needs of the business. However, our investments often feature the following characteristics:

• Investment size of $2M-$10M, with larger commitments possible through co-investment with other funds
• Combination of subordinated debt and preferred stock instruments
• Board seat or observations rights. We do not seek control nor an active management role, but rather we view ourselves as financial partners and strategic advisors
• Investment horizon of approximately five years

Independent Sponsors and Deal Partners

During our 10-year history, we have worked with a variety of co-investors, including institutional investors, other private equity funds, and independent sponsors.

CVF has strong experience working with independent sponsors, and we are always looking to expand our network of valuable sponsors. When working with sponsors, CVF can offer a number of institutional benefits:

• Access to high-quality, competitive lenders
• Extensive professional relationships to aid in due diligence and management consulting
• Long-term partnerships
• Additional capital for growth and acquisition opportunities

If you are interested in learning more about these relationships or working with CVF, please contact us directly through our “Contact” page.


Submitting Proposals

We encourage companies that meet our investment criteria to submit a financing proposal. Please include the following information to expedite the initial review:

• Amount of investment requested from CVF Capital Partners and the anticipated use of proceeds. Please tell us if you are raising more than the amount you are requesting from CVF
• Current business plan, including company background and a description of current and future operations
• Annual financial statements from the last three years
• Projected financial statements for the next three years
• Current and proposed ownership structure
• Background, education, and experience of the management team

 

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