Rand Capital Corporation Announces Board Appointments
November 12, 2019 at 07:02 am
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Rand Capital Corporation announced that it closed on the previously announced transaction with East Asset Management (“EAM”). The transaction included a $25 million strategic investment in Rand by EAM, in exchange for approximately 8.3 million shares of Rand common stock. The investment was comprised of approximately $15.5 million of cash and $9.5 million of portfolio assets. Concurrent with the closing of the transaction, Rand’s management and staff became employees of Rand Capital Management, LLC (“RCM”). In conjunction with the closing, the Board welcomed two new directors proposed by EAM. The new directors are Adam Gusky, Chief Investment Officer of EAM, and Benjamin E. Godley, Chief Executive Officer of Contributor Development Partnership (“CDP”). Adam Gusky is the Chief Investment Officer of EAM. Mr. Gusky has been with EAM since 2010. Ben Godley founded CDP and became its CEO in 2018. CDP is a public benefit corporation focused on improving the operational efficiency and revenue generation capacity of the public media system. Prior to that, Mr. Godley was the Chief Operating Officer of WGBH, where he was responsible for business strategy, financial, and day-to-day operational management of the $240 million, 950 employee educational non-profit.
Rand Capital Corporation is an externally managed business development company (BDC). The Companyâs investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately held, lower middle market companies with committed and experienced managements in a variety of industries. The Company invests in businesses that have sustainable, differentiated and market proven products. The Company invest at least 70 % of total assets in qualifying assets and provide managerial assistance to the portfolio companies in which it invests. The Company's portfolio includes professional and business services, manufacturing, consumer product, software, distribution, automotive, and oil and gas. The Company's investment adviser is Rand Capital Management, LLC (RCM).