Rand Capital Announces $4.5 Million in Funding for New Portfolio Companies in First Quarter 2021
Rand Capital Corporation (Nasdaq: RAND) has invested approximately $4.5 million into two new portfolio companies primarily through debt instruments with equity components. This includes a term loan for Seybert’s Billiard Supply, which plans to enhance its e-commerce presence and marketing efforts. Additionally, Rand partnered with Callodine Strategic Credit and Baymark Capital to form a fire protection platform from the merger of Swanson Fire Protection and Residential & Commercial Fire Protection, which has shown historical revenue growth since 2017.
- Rand's $4.5 million investment indicates strong capital deployment strategy.
- Seybert's Billiard Supply is primed for growth with expanded e-commerce and marketing efforts.
- The fire protection platform formed from Swanson Fire Protection has shown historical revenue growth since 2017.
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Rand Capital Corporation (Nasdaq: RAND) (“Rand”), a business development company, today announced that it recently funded two new portfolio companies with a total investment of approximately
Rand funded a term loan with warrants for Seybert’s Billiard Supply as part of a larger investment led by Moa Capital, a growth private equity firm. In partnership with the Seybert’s founder, Sid Kreis, Moa acquired an equity interest in the company while also providing growth capital. Seybert’s, which was founded in 1998, carries a variety of premium billiard equipment for serious billiard players and is the largest distributor of Predator Billiard cues in the U.S. Seybert’s has developed one of the leading e-commerce platforms for the billiard category and is known for its quality product and service. With the capital infusion, Seybert’s is planning to expand its social media presence and grow its e-commerce marketing and customer service platforms. Its marketing strategy will leverage the company’s long-standing reputation and expertise in the sport. More information can be found at https://www.seyberts.com/.
Rand partnered with Callodine Strategic Credit (“CSC”), an affiliate of Rand’s external adviser, Rand Capital Management (“RCM”), and Baymark Capital to provide acquisition and growth capital in connection with the formation of a full-service fire protection platform created by the merger of Swanson Fire Protection and Residential & Commercial Fire Protection. Rand’s participation in the transaction consisted of debt funding in the form of a subordinated debenture and the acquisition of preferred equity. The merged companies offer a suite of end-to-end fire protection products and services for commercial and residential facilities in a fast-growing industry. With offices in Jacksonville, Florida and Waldorf, Maryland, the combined company has operations spanning across multiple states. Combined under the name BMP Swanson Holdco, LLC, the company has grown revenue on a historical combined company basis since 2017, has established a solid reputation in the industry and the merged companies have been in business for a combined 48 years.
Allen F. (“Pete”) Grum, President and Chief Executive Officer, noted, “These investments demonstrate our continued effort to deploy capital with proven management teams and experienced investment partners. We are focused on increasing net investment income through providing growth and expansion capital to growing and successful companies.”
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally-managed Business Development Company (BDC) with a wholly-owned subsidiary licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC). The Company’s 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 broad variety of industries. Rand invests in early to later-stage businesses that have sustainable, differentiated and market-proven products, revenue of more than
ABOUT CALLODINE STRATEGIC CREDIT
Callodine Strategic Credit (“CSC”) provides mezzanine debt and structured capital solutions to lower middle-market companies predominately located in the Southeast, Midwest, and Mid-Atlantic. CSC’s funds are used for growth, acquisitions, recapitalizations, and refinancings in a broad array of industry sectors. The CSC partners have a significant track record working with lower middle-market companies. CSC is an affiliate of Rand’s external investment adviser, Rand Capital Management, LLC (“RCM”). Both CSC and RCM are subsidiaries of Callodine Group, LLC. For more information, visit www.callodine.com.
ABOUT MOA CAPITAL
Moa Capital is a growth private equity firm focused on companies in the lower middle market. The firm was founded by experienced middle-market private equity investors who recognize the significant opportunity with businesses that are too small for larger private equity firms and do not offer the high growth rates required by venture capital investors. These businesses typically generate less than
Safe Harbor Statement
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