The value of Rand Capital Corp.’s investments grew by 2 percent during the second quarter as the Buffalo venture capital firm turned its attention to generating more interest and dividend income after the highly profitable buyout of its biggest single investment, West Seneca manufacturer Gemcor, earlier this year.
Rand made more than $2.2 million in new investments during the spring, including a $1.5 million stake in medical referral service eHealth Global Technologies and $748,000 in loans to five companies already in Rand’s portfolio.
The investments that Rand made during the first half of this year are expected to generate about $375,000 a year in interest income, which will help the firm replace the dividends it lost when Gemcor was acquired. Rand’s interest and dividend income was down $500,000 during the second quarter.
The value of Rand’s portfolio rose to $5.28 per share, at the end of June, up from $5.16 per share a year ago. After the Gemcor buyout, Rand finished the quarter with $14.4 million in cash.