Rand Capital (Nasdaq: RAND) continues to shift its investment strategy toward more mature businesses that provide a stable income stream through loan repayment and dividends.
Its legacy of startup investments is having a pretty strong year in the meantime.
The publicly traded Buffalo firm invested $616,221 in GiveGab in 2015.
It earned a $1.8 million payout in June after Ithaca-based GiveGab was acquired by a similar company in Texas, according to Rand’s quarterly earnings statement.
The sale was previously reported, but the quarterly filing is the first time Rand’s profit was specifically detailed.
Rand is also one of many stakeholders in Buffalo watching the performance of ACV Auctions stock. The firm invested $163,000 in ACV in 2016. Following ACV’s initial public offering on the NASDAQ stock exchange, Rand owns 590,580 shares of the company’s stock, equaling about $14 million at the current share price.
Rand is led by CEO Pete Grum and CFO Dan Penberthy. Terry and Kim Pegula acquired a majority stake in the company in a 2019 deal.
Despite the performance of its startup investments, Rand’s investments now align with its new philosophy. The company invested $3.9 million in both loans and equity investments last quarter in ITA Acquisition, a Florida-based manufacturer, and $667,000 in a Dallas-based provider of furnished salon and spa spaces for lease.
