Rand Capital Corporation Reports Strong Financial Performance in Q3 2024, with Increased Investment Income and Net Asset Value

Rand Capital Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total investments at fair value were approximately $75.0 million, a decrease from $77.1 million at the end of 2023. The cost of these investments also declined from $68.4 million to $67.1 million. Total assets decreased to $79.8 million from $81.0 million, while total liabilities saw a significant reduction to $9.4 million from $20.2 million, resulting in a notable increase in total stockholders’ equity to $70.4 million, up from $60.8 million.

Investment income for the three months ended September 30, 2024, was $2.2 million, reflecting a 27.4% increase from $1.7 million in the same period of 2023. For the nine months, total investment income rose to $6.4 million, an 18.7% increase from $5.4 million in 2023. This growth was driven primarily by a 33.6% increase in interest from portfolio companies, which reached $5.8 million, compared to $4.3 million in the prior year.

Net investment income for the third quarter was $887,035, slightly up from $798,583 in 2023. However, for the nine months, net investment income decreased to $1.2 million from $2.0 million in the previous year. The company reported a substantial net realized gain on sales and dispositions of investments of $7.2 million for the third quarter, a significant turnaround from a loss of $2.8 million in the same quarter of 2023. For the nine months, net realized gains totaled $11.1 million, compared to $1.1 million in the prior year.

Rand Capital's net increase in net assets from operations for the third quarter was $2.6 million, up from $595,504 in 2023, while for the nine months, it rose to $11.8 million from $5.4 million. The net asset value per share increased to $27.29 from $23.56, reflecting a strong performance in the company's investment portfolio.

Strategically, Rand Capital made new investments totaling $11.1 million during the nine months, with significant contributions from Mattison Avenue Holdings, LLC. The company also repaid, sold, or liquidated investments amounting to $13.7 million during the same period. The firm continues to focus on higher-yielding debt investments and has maintained compliance with its financial covenants under its senior secured revolving credit facility, which had an outstanding balance of $3.9 million as of September 30, 2024.

Overall, Rand Capital's financial performance in the latest quarter reflects a robust recovery in investment income and realized gains, alongside a strategic focus on managing its investment portfolio effectively.