In This Article:
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Net Asset Value (NAV): $157.4 million or $6.73 per share as of September 30, 2024.
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AI Investments: $55 million invested in AI companies, representing 18% of gross assets at quarter's end, increasing to 23% including post-quarter investments.
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Cash Available for Investment: Approximately $32.7 million, representing 14% of gross assets.
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Top Five Positions: CoreWeave, Learneo, OpenAI, Blink Health, and ServiceTitan, accounting for 47% of the investment portfolio at fair value.
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PublicSquare Shares Sold: 359,845 shares for approximately $1 million, with a realized gain of $732,000.
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Convertible Notes Issuance: $25 million in 6.5% convertible notes due 2029, with potential for up to $75 million.
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Share Repurchase Program: Expanded to $64.3 million, with $25 million remaining authorized.
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Investment Portfolio Allocation: 26% in Software as a Service, 21% in AI infrastructure and applications, 16% in Consumer Goods and Services.
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Realized Losses: $6.6 million from OneValley, Inc. and $6.8 million from SPBRX.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SuRo Capital Corp (NASDAQ:SSSS) has made significant investments in AI, with AI investments now representing 23% of their portfolio.
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The company has invested approximately $65 million in sought-after private companies, including $55 million in AI companies.
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SuRo Capital Corp (NASDAQ:SSSS) has a balanced portfolio with late-stage companies like ServiceTitan, Canva, and Whoop, which are well-positioned for potential IPOs.
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The company has successfully monetized public positions, generating realized gains, such as the sale of PublicSquare shares.
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SuRo Capital Corp (NASDAQ:SSSS) has a strong liquidity position with $39.5 million in liquid assets, including $32.7 million in cash.
Negative Points
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The company experienced a decrease in NAV per share from $6.94 to $6.73, driven by net realized losses and investment losses.
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SuRo Capital Corp (NASDAQ:SSSS) reported a realized loss of approximately $6.6 million from the sale of OneValley, Inc.
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The company wrote off investments in Churchill Sponsor VII and YouBet Technology due to dissolutions.
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There is a significant concentration risk, with the top five positions accounting for 47% of the investment portfolio.
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The company faces risks associated with market volatility and uncertainties that could impact future performance.
Q & A Highlights
Q: Can you provide an overview of SuRo Capital's recent investments in AI companies? A: Mark Klein, Chairman and CEO, highlighted that SuRo Capital has invested approximately $65 million in private companies during the second half of 2024, with $55 million allocated to AI companies. Notable investments include OpenAI, CoreWeave, and VAST, which together represent a significant portion of their portfolio. These investments are part of SuRo Capital's strategy to capitalize on the growth of AI and provide shareholders access to leading AI companies.