Davis, CA (January 28, 2021) - CVF Capital Partners, a California-based private equity firm, announced its investment in Recreation Resource Management (RRM) (https://camprrm.com), a Phoenix, AZ-based recreation and hospitality company. RRM partners with various public agencies at the federal, state, and local levels to operate campgrounds and recreation areas under long-term concession agreements. The infusion of mezzanine debt and equity supported the merger of Recreation Resource Management and California Land Management, a California-based recreation and hospitality company. Terms of the investment were not disclosed.
Recreation Resource Management was founded in 1989 and acquired by Warren Meyer in 2002. With the merger, RRM operates over 500 public campgrounds and recreation areas in 13 states, including popular destinations like Burney Falls in Northern California and campgrounds in Sedona, Arizona. RRM manages all phases of campground operations, including reservations, visitor services, and maintenance. Warren Meyer is a strong advocate for public-private partnerships that increase amenities for park visitors while providing financial stability for federal, state, and local governments.
“While the public’s interest in outdoor recreation continues to grow, public lands and recreation agencies are struggling to keep parks open and well-maintained,” observed Warren Meyer, President of RRM. “Our company is able to operate these parks to high levels of customer service at a much lower cost, while still retaining clear focus on the public service goals of each agency.”
Founded in 1981 by Eric Mart, California Land Management is a pioneer in the recreation and hospitality camping industry. With operating agreements on eight National Forests, as well as long-term agreements with state and local governments, California Land Management is a dominant presence along the Western United States. Eric Mart and Warren Meyer share a similar vision for the future of the industry and both serve on the Board of Directors of the National Forest Recreation Association (NFRA). The merger of California Land Management and Recreation Resource Management is the logical next step between two owners who have been leaders in the industry for over a decade.
While COVID-19 pandemic has been a mortal threat to the travel industry, the outdoor recreation and camping industry has thrived. Most of RRM's and CLM's customers live within a gas tank's drive of their destination, and occupancy fees are affordable for park visitors at less than $30 per night on average. Despite periodic shutdowns in the spring and fall, both RRM and CLM were operating at capacity at a majority of their campsites during the peak season. Given the socially distanced nature of camping, Warren Meyer believes these trends will carry over into 2021. “Many of our current efforts,” said Mr. Meyer, “go beyond just operations and investing private capital on public lands to create the enhanced amenities, like cabins and yurts, that these new visitors are demanding. We have a lot of interest from public agencies in these sorts of investments, and CVF has been a critical resource for funding this growth.”
CVF is excited to support Warren's vision and Recreation Resource Management's continued growth. CVF Managing Partner, Brad Triebsch added, "Our investment in Recreation Resource Management aligns well with our mission to partner with companies that benefit from strong macroeconomic tailwinds and have clear opportunities to achieve above-market growth." He continued, "We are excited to partner with such a high-quality company led by an exceptional, purpose-driven operator."
The capital provided by CVF was used to finance the merger, retire existing debt, and provide growth capital for capital expenditures. Stoel Rives LLP and BFBA provided legal and accounting services for CVF, respectively. Upton Financial Group represented Recreation Resource Management during the transaction, and Flack Law, PC provided legal counsel for the Company.
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:
CVF Capital Partners
Tel: 530-757-7004 x224
CVF Capital Partners
Tel: 530-757-7004 x221