Wednesday, April 09, 2014

National Legal Services is Formed with $8 Million in Financing from Central Valley Fund

The Central Valley Fund provided $8 million financing for Temecula-based litigation support company RSP & Associates to buy Quest Discovery Services.

Sacramento, April 8, 2014 -- Based in Davis and Fresno, the Central Valley Fund provided the acquisition capital in March. It announced the deal today.

The two companies will combine under the name National Legal Services LLC, and the new company will be led by Ken Croney, the current CEO of Quest. RSP has a single office in northern San Diego County.

Quest is based in San Jose and has offices in Sacramento, Los Angeles, Santa Rosa and Fresno.

Ed McNulty, partner with the Central Valley Fund, takes a board seat at the newly formed company.

Started in 2005, the Central Valley Fund is a lender that uses mezzanine lending or preferred equity financing to help mature companies expand or to fund buy outs. Mezzanine financing is an intermediate step in financing. It is basically the sale of equity to the lender. The debt is junior to bank debt, and it improves the creditworthiness of the company. The lender gets repaid by being bought out either by the borrower or in a larger sale.

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