SuRo Capital Corp. Fourth Quarter and Fiscal Year 2023 Preliminary Investment Portfolio Update
SuRo Capital Corp. provided a preliminary update on its investment portfolio, reporting a net asset value estimated to be between $7.85 to $8.35 per share as of December 31, 2023. The company holds positions in 38 portfolio companies, with liquid assets of approximately $98.5 million. The preliminary financial estimates are unaudited and have been prepared by the management of SuRo Capital.
The preliminary update on SuRo Capital's investment portfolio indicates a slight decrease in net asset value per share from the previous quarter, which could be a reflection of the challenging economic and geopolitical environment outlined in the statement. Such a decrease in net asset value might potentially affect investor sentiment and could be indicative of broader market trends that impact similar investment companies. It's important to note that the net asset value is a critical metric for investment firms as it represents the value of their assets minus liabilities on a per-share basis.
Furthermore, the disclosed investments and exits during the quarter show active portfolio management. The follow-on investments in FourKites, Inc. and Xgroup Holdings Limited suggest a strategic approach to bolster positions in companies SuRo Capital believes have growth potential. On the other hand, the realized gains and losses from exits, such as the gain from Forge Global, Inc. and the losses from NewLake Capital Partners, Inc. and Nextdoor Holdings, Inc., provide insight into the performance of their investment strategy. These transactions and their outcomes are of interest to investors as they can affect the company's future earnings and, consequently, its stock price.
The mention of geopolitical uncertainty and bifurcated equity markets is significant as it suggests that SuRo Capital is operating in a complex investment landscape. This context is vital for stakeholders to understand the external factors influencing investment decisions and portfolio performance. The fact that the majority of stocks posted only modest gains, while a handful drove the stock market higher, indicates a selective market where stock-picking skills are crucial. This environment can lead to increased volatility and risk, particularly for investment firms with exposure to private markets, where valuation adjustments may be more subjective and less frequent than in public markets.
Additionally, the company's liquidity position, with $98.5 million in liquid assets, is a key factor to consider. This liquidity provides flexibility in capital deployment and may be a buffer against market downturns or for taking advantage of opportunistic investments. Investors would be interested in how this liquidity is managed, as it could significantly impact the company's ability to navigate through uncertain times and capitalize on market dislocations.
The backdrop of two wars, domestic and international bank failures, rampant inflation and aggressive Federal Reserve intervention is a potent mix that has likely contributed to the volatility experienced in the stock market. For an investment firm like SuRo Capital, these conditions necessitate a cautious yet opportunistic investment strategy. The impact of inflation on investment valuations and the cost of capital is an area of interest, as inflation can erode the real value of returns and make future cash flows less predictable. Furthermore, Federal Reserve interventions, which typically involve changes to interest rates, can significantly influence investment firm valuations, cost of debt and the overall investment climate.
It is also worth considering the potential long-term impact of these macroeconomic factors on SuRo Capital's investment strategy and portfolio companies. Firms with strong fundamentals and resilient business models may be better positioned to withstand economic headwinds, which can be a differentiating factor in performance compared to the broader market. The ability of SuRo Capital to identify and invest in such companies could be a critical determinant of its success in the current economic cycle.
01/16/2024 - 04:05 PM
Net Asset Value Anticipated to be $7.85 t o $8.35 Per Share
NEW YORK, Jan. 16, 2024 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS
“The fourth quarter ended a year that included two wars, domestic and international bank failures, rampant inflation, and aggressive Federal Reserve intervention. These events led to a volatile stock market. While a handful of companies drove the stock market higher, a majority of stocks posted only modest gains. The combination of geopolitical uncertainty and bifurcated equity markets translated into declining values in the private markets, resulting in a significantly reduced level of primary capital raises,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.
“Despite these challenging events and crosscurrents, as we move into the new year with over $90 million in investable capital, we remain steadfast in our belief that there continue to be high-quality opportunities available at attractive prices that allow us to be both opportunistic and judicious with the deployment of capital,” Mr. Klein concluded.
As previously reported, SuRo Capital’s net assets totaled approximately $212.0 million , or $8.41 per share, at September 30, 2023, and approximately $210.0 million , or $7.39 per share at December 31, 2022. As of December 31, 2023, SuRo Capital’s net asset value is estimated to be between $7.85 t o $8.35 per share.
As of December 31, 2023, there were 25,445,805 shares of the Company’s common stock outstanding.
Investment Portfolio Update
As of December 31, 2023, SuRo Capital held positions in 38 portfolio companies – 34 privately held and 4 publicly held, some of which may be subject to certain lock-up provisions.
During the three months ended December 31, 2023, SuRo Capital made the following investments, excluding short-term US treasuries:
Portfolio Company Investment Transaction Date Amount Colombier Sponsor II LLC Class B Units & Class W Units 11/20/2023 $1.6 million FourKites, Inc.( 1 ) Common Shares 12/21/2023 $2.7 million Xgroup Holdings Limited (d/b/a Xpoint)( 2 ) Convertible Note 10/26/2023 $0.3 million
____________________ (1) Represents a follow-on investment. (2) Represents a follow-on investment made through SuRo Capital Sports, LLC.
During the three months ended December 31, 2023, SuRo Capital exited or received proceeds from the following investments, excluding short-term US treasuries:
Portfolio Company Transaction Date Quantity Average Net Share Price (1) Net Proceeds Realized Gain/(Loss) Churchill Sponsor VI LLC 12/4/2023 N/A N/A $- $(0.2 million )Forge Global, Inc.( 2 ) Various 1,465,994 $3.56 $5.2 million $3.9 million NewLake Capital Partners, Inc.( 3 ) Various 105,820 $14.02 $1.5 million $(0.7 million )Nextdoor Holdings, Inc.( 4 ) Various 150,000 $1.98 $0.3 million $(0.5 million )PSQ Holdings, Inc. (d/b/a PublicSq.) – Public Warrants ( 5 ) Various 303,963 $1.05 $0.3 million $0.2 million Residential Homes For Rent, LLC (d/b/a Second Avenue)( 6 ) Various N/A N/A $0.3 million $- True Global Ventures 4 Plus Pte Ltd 12/18/2023 N/A N/A $0.1 million $-
____________________ (1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable. (2) As of December 31, 2023, SuRo Capital held 1,145,875 remaining Forge Global, Inc. public common shares. (3) As of December 15, 2023, SuRo Capital had sold its remaining NewLake Capital Partners, Inc. public common shares. (4) As of December 31, 2023, SuRo Capital held 112,420 remaining Nextdoor Holdings, Inc. public common shares. (5) As of December 31, 2023, SuRo Capital held 2,396,037 remaining PSQ Holdings, Inc. (d/b/a PublicSq.) public warrants. (6) On December 26, 2023, a final payment was received from Residential Homes For Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023. During the three months ended December 31, 2023, approximately $0.3 million was received, of which approximately $0.3 million repaid the outstanding principal and the remaining was attributed to interest.
SuRo Capital’s liquid assets were approximately $98.5 million as of December 31, 2023, consisting of cash, short-term US treasuries, and securities of publicly traded portfolio companies not subject to lock-up restrictions at year-end.
Preliminary Estimates and Guidance
The preliminary financial estimates provided herein are unaudited and have been prepared by, and are the responsibility of, the management of SuRo Capital. Neither our independent registered public accounting firm, nor any other independent accountants, have audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial data included herein. Actual results may differ materially.
The Company expects to announce its fourth quarter and fiscal year ended December 31, 2023 results in March 2024.
Forward-Looking Statements
Statements included herein, including statements regarding SuRo Capital's beliefs, expectations, intentions, or strategies for the future, may constitute "forward-looking statements". SuRo Capital cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements. All forward-looking statements involve a number of risks and uncertainties, including the impact of any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy, that could cause actual results to differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements. Risk factors, cautionary statements, and other conditions which could cause SuRo Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange Commission. SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS ) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in New York, NY and has offices in San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com .
Contact IR@surocap.com
What is SuRo Capital's estimated net asset value per share as of December 31, 2023?
SuRo Capital's estimated net asset value per share as of December 31, 2023, is between $7.85 to $8.35.
How many portfolio companies does SuRo Capital hold positions in?
SuRo Capital holds positions in 38 portfolio companies, consisting of 34 privately held and 4 publicly held.
What are SuRo Capital's liquid assets as of December 31, 2023?
SuRo Capital's liquid assets were approximately $98.5 million as of December 31, 2023, consisting of cash, short-term US treasuries, and securities of publicly traded portfolio companies not subject to lock-up restrictions at year-end.
When is SuRo Capital expected to announce its fourth quarter and fiscal year ended December 31, 2023 results?
The Company expects to announce its fourth quarter and fiscal year ended December 31, 2023 results in March 2024.
