SuRo Capital Corp. Reports Third Quarter 2024 Financial Results
Rhea-AI Summary
SuRo Capital Corp. (Nasdaq: SSSS) reported its Q3 2024 financial results, highlighting a Net Asset Value (NAV) of $6.73 per share, down from $6.94 per share in Q2 2024 and $8.41 per share in Q3 2023. Net assets totaled $157.4 million.
The company continues to advance its AI strategy with significant investments, including $17.5 million in OpenAI and $5 million in CoreWeave. Post-quarter, it further invested $12 million in VAST and another $5 million in CoreWeave.
SuRo Capital's portfolio, valued at $199.3 million, includes 37 companies, with the top five investments accounting for 47% of the total portfolio value. The top five investments are CoreWeave ($23.1M), Learneo ($20.8M), ARK Type One Deep Ventures Fund ($17.7M), Blink Health ($17.4M), and ServiceTitan ($15.3M).
Financial results show a net investment loss of $3.2 million ($0.14 per share) and a net realized loss on investments of $13.7 million ($0.59 per share). The company has liquid assets of $39.5 million.
SuRo Capital also announced a $75 million Convertible Note Purchase Agreement and repurchased $30 million in convertible notes, with a share repurchase program extended to 2025.
Positive
- SuRo Capital invested $17.5 million in OpenAI and $5 million in CoreWeave.
- Post-quarter, invested $12 million in VAST and another $5 million in CoreWeave.
- Convertible Note Purchase Agreement of up to $75 million with $30 million already issued.
- Share repurchase program extended to 2025 with $25 million remaining.
Negative
- Net Asset Value decreased from $6.94 per share in Q2 2024 to $6.73 per share in Q3 2024.
- Net realized loss on investments of $13.7 million ($0.59 per share).
- Net investment loss of $3.2 million ($0.14 per share).
News Market Reaction 1 Alert
On the day this news was published, SSSS declined 6.48%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Continues to Advance AI Strategy with Major New Investments
Net Asset Value of
NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today announced its financial results for the quarter ended September 30, 2024. Net assets totaled approximately
“Since inception, SuRo Capital has served as the public's gateway to venture capital, offering unique access to some of the world’s most innovative and sought-after private companies before they become publicly traded. Our portfolio spans high-growth sectors including AI infrastructure, emerging consumer brands, and exciting software solutions for both consumer and enterprise markets, among others,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.
“This is an exceptionally promising time for our portfolio,” Mr. Klein continued. “Over the past five years, we have made it a priority to share our perspectives on evolving market cycles and trends. In 2020, we anticipated a significant increase in IPO activity and we strategically positioned our portfolio to capitalize on that potential. In 2021, we monetized over
Mr. Klein then highlighted SuRo Capital’s recent investments, noting, “This year has marked one of our most active investment periods in the last decade. During the quarter, we made a
“If market conditions remain favorable, we believe the IPO market will re-open, providing substantial opportunities for several investments within our portfolio,” Mr. Klein concluded. “I am confident that our current positioning is as strong, if not stronger, than it was in 2020.”
Investment Portfolio as of September 30, 2024
At September 30, 2024, SuRo Capital held positions in 37 portfolio companies – 33 privately held and 4 publicly held, some of which may be subject to certain lock-up provisions – with an aggregate fair value of approximately
Top Five Investments as of September 30, 2024
| Portfolio Company ($ in millions) | Cost Basis | Fair Value | % of Total Portfolio | ||||
| CW Opportunity 2 LP & CoreWeave, Inc.(1) | $ | 20.2 | $ | 23.1 | 11.6 | % | |
| Learneo, Inc. | 15.0 | 20.8 | 10.5 | ||||
| ARK Type One Deep Ventures Fund LLC(2) | 17.7 | 17.7 | 8.9 | ||||
| Blink Health, Inc. | 15.0 | 17.4 | 8.7 | ||||
| ServiceTitan, Inc. | 10.0 | 15.3 | 7.7 | ||||
| Total(3) | $ | 77.9 | $ | 94.2 | 47.3 | % | |
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(1) Includes SuRo Capital’s
(2) ARK Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely invested in the Convertible Equity of OpenAI Global, LLC.
(3) Total may not sum due to rounding.
Third Quarter 2024 Investment Portfolio Activity
During the three months ended September 30, 2024, SuRo Capital made the following investments:
| Portfolio Company | Investment | Transaction Date | Amount(1) |
| ARK Type One Deep Ventures Fund LLC(2) | Membership Interest, Class A | 9/25/2024 | |
| CoreWeave, Inc. | Common Shares | 9/26/2024 |
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(1) Amount invested does not include any capitalized costs or prepaid management fees or fund expenses, if applicable.
(2) ARK Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely invested in the Convertible Equity of OpenAI Global, LLC.
During the three months ended September 30, 2024, SuRo Capital exited or received proceeds from the following investments:
| Portfolio Company | Transaction Date | Quantity | Average Net Share Price(1) | Net Proceeds | Realized Gain/(Loss) | ||
| Churchill Sponsor VII LLC | 8/18/2024 | N/A | N/A | $- | |||
| OneValley, Inc. (f/k/a NestGSV, Inc.)(2) | 8/29/2024 | N/A | N/A | ||||
| PSQ Holdings, Inc. (d/b/a PublicSquare) – Public Common Shares(3) | Various | 359,845 | |||||
| SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(4) | 9/30/2024 | N/A | N/A | ||||
| YouBet Technology, Inc. (d/b/a FanPower)(5) | 8/22/2024 | N/A | N/A | $- | |||
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(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) On August 29, 2024, SuRo Capital sold its remaining position in OneValley, Inc. (f/k/a NestGSV, Inc.).
(3) As of September 30, 2024, SuRo Capital held 1,616,187 remaining PSQ Holdings, Inc. (d/b/a PublicSquare) public common shares.
(4) On September 20, 2024, SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) dissolved its business and made a final distribution.
(5) Investment made through SuRo Capital Sports, LLC.
Subsequent to quarter-end through November 7, 2024, SuRo Capital made the following investments:
| Portfolio Company | Investment | Transaction Date | Amount(1) |
| CoreWeave, Inc. | Series A Preferred Shares | 10/8/2024 | |
| IH10, LLC(2) | Membership Interest | 10/9/2024 |
__________________
(1) Amount invested does not include any capitalized costs or prepaid management fees or fund expenses, if applicable.
(2) IH10, LLC’s sole portfolio asset is interest in the Series B Preferred Shares of VAST Data, Ltd. through a special purpose vehicle.
Subsequent to quarter-end through November 7, 2024, SuRo Capital exited or received proceeds from the following investments:
| Portfolio Company | Transaction Date | Quantity | Average Net Share Price(1) | Net Proceeds | Realized Gain | |
| PSQ Holdings, Inc. (d/b/a PublicSquare) – Public Common Shares(2) | Various | 822,305 | ||||
__________________
(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 November 7, 2024, SuRo Capital held 793,882 remaining PSQ Holdings, Inc. (d/b/a PublicSquare) public common shares.
Third Quarter 2024 Financial Results
| Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 | ||||
| $ in millions | per share(1) | $ in millions | per share(1) | ||
| Net investment loss | |||||
| Net realized loss on investments | (13.7) | (0.59) | (1.5) | (0.06) | |
| Realized loss on partial repurchase of | (0.1) | (0.01) | - | - | |
| Net change in unrealized appreciation of investments | 11.6 | 0.50 | 29.3 | 1.16 | |
| Net increase/(decrease) in net assets resulting from operations – basic (2) | |||||
| Repurchase of common stock(3) | - | - | (0.7) | 0.04 | |
| Stock-based compensation | 0.6 | 0.03 | 0.8 | 0.03 | |
| Increase/(decrease) in net asset value(2) | |||||
__________________
(1) Based on basic weighted-average number of shares outstanding for the relevant period.
(2) Total may not sum due to rounding.
(3) The use of cash in connection with the repurchases decreased net asset value as of quarter-end; however, the reduction in shares outstanding as of quarter-end resulted in an increase in the net asset value per share.
Weighted-average common basic shares outstanding were approximately 23.4 million and 25.4 million for the quarters ended September 30, 2024 and 2023, respectively. As of September 30, there were 23,378,002 shares of the Company’s common stock outstanding.
SuRo Capital’s liquid assets were approximately
Convertible Note Purchase Agreement
On August 6, 2024, SuRo Capital entered into a Note Purchase Agreement (the “Note Purchase Agreement”), by and between the Company and the purchaser identified therein (the “Purchaser”), pursuant to which we may issue up to a maximum of
Interest on the Convertible Notes will be paid quarterly in arrears on March 30, June 30, September 30, and December 30, at a rate of
Subsequent to quarter-end, pursuant to the Note Purchase Agreement, on October 9, 2024 we issued and sold, and the Purchaser purchased,
Note Repurchase Program
On August 6, 2024, SuRo Capital’s Board of Directors approved a discretionary note repurchase program (the “Note Repurchase Program”) which allows the Company to repurchase up to
Subsequent to quarter-end through November 7, 2024, we repurchased an additional 201,446 of the
Share Repurchase Program
On October 29, 2024, the Company’s Board of Directors authorized an extension of, and a
Since inception of the Share Repurchase Program in August 2017, SuRo Capital has repurchased over 6.0 million shares of its common stock for an aggregate purchase price of approximately
Under the Share Repurchase Program, the Company may repurchase its outstanding common stock in the open market, provided it complies with the prohibitions under its insider trading policies and procedures and the applicable provisions of the 1940 Act and the Exchange Act.
Conference Call and Webcast
Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET) on November 7, 2024. The conference call access number for U.S. participants is 866-580-3963, and the conference call access number for participants outside the U.S. is +1 786-697-3501. The conference ID number for both access numbers is 9289675. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following the live presentation.
A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on November 14, 2024 by dialing 866-583-1035 (U.S.) or +44 (0) 20 3451 9993 (International) and using conference ID number 9289675.
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 X, LinkedIn, and at www.surocap.com.
Contact
SuRo Capital Corp.
(212) 931-6331
IR@surocap.com
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Investments at fair value: | |||||||
| Non-controlled/non-affiliate investments (cost of | $ | 189,057,313 | $ | 147,167,535 | |||
| Non-controlled/affiliate investments (cost of | 8,645,465 | 24,931,333 | |||||
| Controlled investments (cost of | 1,600,000 | 11,982,381 | |||||
| Total Portfolio Investments | 199,302,778 | 184,081,249 | |||||
| Investments in U.S. Treasury bills (cost of | — | 63,810,855 | |||||
| Total Investments (cost of | 199,302,778 | 247,892,104 | |||||
| Cash | 32,737,114 | 28,178,352 | |||||
| Proceeds receivable | 124,950 | — | |||||
| Escrow proceeds receivable | 63,745 | 309,293 | |||||
| Interest and dividends receivable | 88,950 | 132,607 | |||||
| Deferred financing costs | 492,952 | 594,726 | |||||
| Prepaid expenses and other assets(1) | 971,360 | 494,602 | |||||
| Total Assets | 233,781,849 | 277,601,684 | |||||
| LIABILITIES | |||||||
| Accounts payable and accrued expenses(1) | 2,985,454 | 346,308 | |||||
| Dividends payable | 44,700 | 152,523 | |||||
| 49,158,918 | 73,745,207 | ||||||
| 24,155,570 | — | ||||||
| Total Liabilities | 76,344,642 | 74,244,038 | |||||
| Net Assets | $ | 157,437,207 | $ | 203,357,646 | |||
| NET ASSETS | |||||||
| Common stock, par value | $ | 233,780 | $ | 254,458 | |||
| Paid-in capital in excess of par | 240,723,120 | 248,454,107 | |||||
| Accumulated net investment loss | (14,390,511 | ) | (4,304,111 | ) | |||
| Accumulated net realized loss on investments, net of distributions | (26,661,214 | ) | (12,348,772 | ) | |||
| Accumulated net unrealized appreciation/(depreciation) of investments | (42,467,968 | ) | (28,698,036 | ) | |||
| Net Assets | $ | 157,437,207 | $ | 203,357,646 | |||
| Net Asset Value Per Share | $ | 6.73 | $ | 7.99 | |||
______________________________
(1) This balance includes a right of use asset and corresponding operating lease liability, respectively.
(2) As of September 30, 2024, the
(3) As of September 30, 2024, the
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Non-controlled/non-affiliate investments: | ||||||||||||||||
| Interest income(1) | $ | 578,603 | $ | 28,070 | $ | 1,111,360 | $ | 117,939 | ||||||||
| Dividend income | 166,153 | 63,145 | 188,028 | 189,435 | ||||||||||||
| Controlled investments: | ||||||||||||||||
| Interest income | 143,961 | 400,000 | 955,628 | 954,425 | ||||||||||||
| Interest income from U.S. Treasury bills | — | 974,531 | 1,189,145 | 2,875,247 | ||||||||||||
| Total Investment Income | 888,717 | 1,465,746 | 3,444,161 | 4,137,046 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Compensation expense | 1,916,361 | 2,123,704 | 6,300,188 | 6,378,330 | ||||||||||||
| Directors’ fees | 171,661 | 161,661 | 510,599 | 483,887 | ||||||||||||
| Professional fees | 515,244 | 277,075 | 1,830,628 | 2,184,488 | ||||||||||||
| Interest expense | 1,153,466 | 1,215,248 | 3,582,000 | 3,642,801 | ||||||||||||
| Income tax expense | — | — | 54,894 | 620,606 | ||||||||||||
| Other expenses | 339,858 | 356,484 | 1,252,252 | 1,522,465 | ||||||||||||
| Total Operating Expenses | 4,096,590 | 4,134,172 | 13,530,561 | 14,832,577 | ||||||||||||
| Net Investment Loss | (3,207,873 | ) | (2,668,426 | ) | (10,086,400 | ) | (10,695,531 | ) | ||||||||
| Realized Loss on Investments: | ||||||||||||||||
| Non-controlled/non-affiliated investments | (328,520 | ) | (1,461,281 | ) | (775,461 | ) | (3,597,113 | ) | ||||||||
| Non-controlled/affiliate investments | (6,598,530 | ) | — | (6,598,530 | ) | (10,945,024 | ) | |||||||||
| Controlled investments | (6,786,462 | ) | — | (6,793,207 | ) | — | ||||||||||
| Net Realized Loss on Investments | (13,713,512 | ) | (1,461,281 | ) | (14,167,198 | ) | (14,542,137 | ) | ||||||||
| Realized loss on partial repurchase of | (145,244 | ) | — | (145,244 | ) | — | ||||||||||
| Change in Unrealized Appreciation/(Depreciation) of Investments: | ||||||||||||||||
| Non-controlled/non-affiliated investments | (1,988,131 | ) | 27,760,743 | (24,362,275 | ) | 13,544,366 | ||||||||||
| Non-controlled/affiliate investments | 6,811,103 | 1,568,324 | 3,806,567 | 25,939,147 | ||||||||||||
| Controlled investments | 6,791,412 | (6,000 | ) | 6,785,776 | (56,000 | ) | ||||||||||
| Net Change in Unrealized Appreciation/(Depreciation) of Investments | 11,614,384 | 29,323,067 | (13,769,932 | ) | 39,427,513 | |||||||||||
| Net Change in Net Assets Resulting from Operations | $ | (5,452,245 | ) | $ | 25,193,360 | $ | (38,168,774 | ) | $ | 14,189,845 | ||||||
| Net Change in Net Assets Resulting from Operations per Common Share: | ||||||||||||||||
| Basic | $ | (0.23 | ) | $ | 0.99 | $ | (1.59 | ) | $ | 0.53 | ||||||
| Diluted(2) | $ | (0.23 | ) | $ | 0.99 | $ | (1.59 | ) | $ | 0.53 | ||||||
| Weighted-Average Common Shares Outstanding | | |||||||||||||||
| Basic | 23,378,002 | 25,351,306 | 24,058,085 | 26,549,672 | ||||||||||||
| Diluted(2) | 23,378,002 | 25,351,306 | 24,058,085 | 26,549,672 | ||||||||||||
__________________________________________________
(1) Includes interest income earned on cash.
(2) For the three and nine months ended September 30, 2024, 3,225,808 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net decrease in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. For the three and nine months ended September 30, 2023, there were no potentially dilutive securities outstanding.
SURO CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
| | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Per Basic Share Data | ||||||||||||||||
| Net asset value at beginning of the year | $ | 6.94 | $ | 7.35 | $ | 7.99 | $ | 7.39 | ||||||||
| Net investment loss(1) | (0.14 | ) | (0.11 | ) | (0.42 | ) | (0.40 | ) | ||||||||
| Net realized loss on investments(1) | (0.59 | ) | (0.06 | ) | (0.59 | ) | (0.55 | ) | ||||||||
| Realized loss on partial repurchase of | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Net change in unrealized appreciation/(depreciation) of investments(1) | 0.50 | 1.16 | (0.57 | ) | 1.49 | |||||||||||
| Repurchase of common stock(1) | — | 0.04 | 0.23 | 0.41 | ||||||||||||
| Stock-based compensation(1) | 0.03 | 0.03 | 0.10 | 0.07 | ||||||||||||
| Net asset value at end of period | $ | 6.73 | $ | 8.41 | $ | 6.73 | $ | 8.41 | ||||||||
| Per share market value at end of period | $ | 4.04 | $ | 3.62 | $ | 4.04 | $ | 3.62 | ||||||||
| Total return based on market value(2) | 0.75 | % | 13.13 | % | 2.54 | % | (4.74)% | |||||||||
| Total return based on net asset value(2) | (3.03)% | 14.42 | % | (15.77)% | 13.80 | % | ||||||||||
| Shares outstanding at end of period | 23,378,002 | 25,209,108 | 23,378,002 | 25,209,108 | ||||||||||||
| Ratios/Supplemental Data: | | | | | ||||||||||||
| Net assets at end of period | $ | 157,437,207 | $ | 211,971,043 | $ | 157,437,207 | $ | 211,971,043 | ||||||||
| Average net assets | $ | 161,407,400 | $ | 204,284,971 | $ | 179,655,590 | $ | 206,224,853 | ||||||||
| Ratio of net operating expenses to average net assets(3) | 10.10 | % | 8.03 | % | 10.06 | % | 9.62 | % | ||||||||
| Ratio of net investment loss to average net assets(3) | (7.91)% | (5.18)% | (7.50)% | (6.93)% | ||||||||||||
| Portfolio Turnover Ratio | 2.30 | % | 1.17 | % | 8.06 | % | 4.93 | % | ||||||||
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(1) Based on weighted-average number of shares outstanding for the relevant period.
(2) Total return based on market value is based upon the change in market price per share between the opening and ending market values per share in the period, adjusted for dividends and equity issuances. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period, adjusted for dividends and equity issuances.
(3) Financial highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios.
FAQ
What was SuRo Capital's Net Asset Value (NAV) per share for Q3 2024?
How much did SuRo Capital invest in OpenAI in Q3 2024?
What is the value of SuRo Capital's investment portfolio as of September 30, 2024?
What are SuRo Capital's top five investments as of September 30, 2024?
What was SuRo Capital's net investment loss for Q3 2024?
How much did SuRo Capital's net realized loss on investments amount to in Q3 2024?
What is the total value of SuRo Capital's liquid assets as of September 30, 2024?
What is the total amount of SuRo Capital's Convertible Note Purchase Agreement?
What is the status of SuRo Capital's share repurchase program?
