Central Valley Fund II Provides $3.3M in Debt Financing
Central Valley Fund II (CVF) announced today it has invested $3.3M in mezzanine capital financing to Valley Healthcare Staffing (VHS), a leading provider of nursing and allied healthcare travel staffing services, in order to facilitate the exit of legacy minority shareholders. The investment was completed in partnership with Founder and CEO Steve Swan, who is the principal shareholder of the Company. Steve Swan will continue to oversee the day-to-day operations and support his management team in the ever-evolving healthcare marketplace- which has experienced dramatic growth as a result of the Affordable Care Act (ACA).
“We are excited to partner with Steve and his team during the next phase of the company’s growth,” said Jose Blanco, a principal with CVF.
“The healthcare staffing industry is benefiting from numerous tailwinds, including an aging population that tends to utilize a greater proportion of healthcare services than the general population; improved access to medical care as a result of the nationwide expansion of insurance coverage; a shortage of healthcare professionals to match the rising demands of healthcare providers; and higher turnover within healthcare services due to improved economic conditions,” Blanco said. “These factors suggest an attractive outlook for healthcare staffing firms, which should continue to propel the growth of Valley Healthcare. In addition to organic growth, VHS will look to play a major role in consolidating a traditionally fragmented industry through accretive acquisitions.”
“We are thrilled with our new partnership and excited about the opportunities in front of us,” said Swan. “With their ambitious vision and healthy competitive nature, the CVF team was a perfect match for our company and its people. Their partnership affords our team the opportunity to invest in innovation through technology to create the best-in-class systems that will set us apart from everyone else.”
Valley Healthcare has focused its efforts on specialty travel nursing in recent years- a very dynamic and sought after labor pool. As the economy rebounds and California continues to see a spike in new insurance enrollees, the Company has focused on building its own infrastructure and improving its marketing presence. As a result of its efforts, VHS grew its revenue by 35% year-over-year in 2015 and expects to once again grow by 30% in 2016. As a result, the Company is expanding its operations in California- which is experiencing its rapid growth in healthcare services as a result of the newly insured members attributed to the expansion of healthcare coverage under the ACA.
Valley Healthcare has its corporate office in Sacramento, CA with 24 internal employees. It aims to reach $50 million in revenue in four to five years through a combination of organic growth and acquisitions.
About Valley Healthcare Staffing
Founded in Sacramento, California in 2002, Valley Healthcare has endeavored to provide a best-of-class recruitment and placement experience for the leading hospital systems since its inception. VHS has developed proprietary innovative on-line tools Job Mechanix and ValleyForce that facilitate a nurse’s job search to identify interesting and engaging travel nursing positions and subsequent onboarding for regulatory compliance and employment purposes.
For more information, please visit www.valleyrocks.com