SURO CAPITAL CORP. Q1 2024 Earnings Call
May 8, 2024
Forward Looking Statements
Statements included herein, including statements regarding SuRo Capital Corp.'s ("SuRo Capital", "SSSS", "we", "us" or "our") 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 ("SEC"). SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this presentation.
Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified. SuRo Capital makes no representation or warranty with respect to this information.
The following slides contain summaries of certain financial and statistical information about SuRo Capital. The information contained in this presentation is summary information intended to be considered in connection with review of our SEC filings and other public announcements we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation unless required to do so by law. In addition, information related to past performance, while it may be helpful as an evaluative tool, is not indicative of future results, the achievement of which cannot be assured. You should not view the past performance of SuRo Capital or any of its portfolio companies, or information about the market, as indicative of SuRo Capital's or any of its portfolio companies' future results. The performance data stated herein may have been due to extraordinary market or other conditions, which may not be duplicated in the future. Current performance may be lower or higher than the performance data quoted. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of SuRo Capital.
2 | First Quarter 2024 |
Earnings Overview
• | SuRo Capital's Net Asset Value ("NAV") Per Share is $7.17 as of March 31, 2024 |
1 |
- Net Assets totaled approximately $181.7 million at quarter-end
• | Cash & Short-Term US Treasuries Balance of $80.4 Million as of March 31, 2024 |
2 |
- Excludes public securities
•3 Added 3 New Portfolio Companies Year-to-Date
- Supplying Demand, Inc. (d/b/a Liquid Death)
- Canva, Inc.
- CW Opportunity 2 LP(1)
•4 Modified Dutch Auction Tender Offer ("Tender Offer") and Share Repurchases
- On February 14, 2024, SuRo Capital's Board of Directors authorized the Tender Offer for up to 2 million shares of common stock at a price per share between $4.00 to $5.00, using available cash; the Tender Offer expired on April 1, 2024
- Subsequent to quarter-end, SuRo Capital repurchased 2 million shares of common stock for approximately $9.4 million at $4.70 per share, a 41.2% discount to the December 31, 2023 NAV per share and a 34.4% discount to the March 31, 2024 NAV per share
- Approximately $20.7 million remaining approved to deploy via the Share Repurchase Program
- CW Opportunity 2 LP is an SPV that will invest in CoreWeave, Inc.
3 | First Quarter 2024 |
Top 5 Positions = 51% of Investment Portfolio at Fair Value
Based on Total Investment Portfolio Fair Value of $175.0 million (excluding short-term US Treasuries) at March 31, 2024
Portfolio Company | Cost Basis | Fair Value | % of Investment | |
($ in millions) | ($ in millions) | Portfolio | ||
1 | $15.0 | $43.0 | 24.6% | |
2 | $10.0 | $13.4 | 7.7% | |
3 | $15.0 | $11.6 | 6.6% | |
4 | $10.0 | $10.9 | 6.2% | |
5 | $6.4 | $10.6 | 6.1% | |
$56.4 | $89.5 | 51.1%(1) | ||
Amount | ||||
($ in millions) | ||||
Cash & Short-Term US Treasuries at March 31, 2024(2) | $80.4 |
- Totals may not sum due to rounding.
- Excludes unrestricted and restricted public securities.
- SuRo Capital's Top 5 positions account for approximately 51% of the investment portfolio at fair value as of March 31, 2024
- SuRo Capital's cash and cash equivalents balance was approximately $80.4 million, or 31% of gross assets as of March 31, 2024
4 | First Quarter 2024 |
Investment Activity - Canva, Inc.
Canva Description
- Canva is an online visual communications and collaboration platform
- The platform features a simple drag-and-drop user interface and a large selection of templates including presentations, documents, websites, social media graphics, posters, apparel, and videos, in addition to a wide selection of fonts, stock photography, illustrations, video footage, and audio clips
Opportunity
- According to Canva's 2023 annual report, there are over 170 million monthly Canva users in 190 different countries
- According to the report, more than 90% of Fortune 500 companies use Canva, and 135,000 teams in companies of more than 1,000 employees are designing on Canva
.com | Reflecting on 2023: Canva's 10th and biggest year yet | PitchBook.
SuRo Capital Investment
- SuRo Capital made a $10.0 million investment in Canva, Inc.'s Common Shares in April 2024
Select Canva Investors
5 | First Quarter 2024 |
Investment Activity - CW Opportunity 2 LP
CoreWeave Description
- CoreWeave is a specialized cloud provider, designed to power the most complex workloads with customized solutions at scale
- The company's portfolio of cutting-edge technology delivers a broad range of capabilities for machine learning and AI, graphics and rendering, life sciences, real-time streaming, and more
Opportunity
Opportunity
2 LP
SuRo Capital Investment
- SuRo Capital made a $15.0 million investment in the Class A Interest of CW Opportunity 2 LP in May 2024
Select CoreWeave Investors
- CW Opportunity 2 LP is an SPV that will invest in the preferred shares of CoreWeave, Inc.
- With its new financing round, CoreWeave intends
to continue investing in, and working with, the largest AI enterprises in the world
CoreWeave.com | CoreWeave Secures $1.1 Billion in Series C Funding to Drive the Next Generation of Cloud Computing for the Future of AI | CoreWeave Announces Secondary Sale of $642 Million | CoreWeave to Offer New 4th Scalable Processor for Accelerated CPU Performance | Mistral AI and CoreWeave Demonstrate Partnership at NVIDIA GTC, Mistral AI Hackathon | PitchBook.
6 | First Quarter 2024 |
Portfolio Company Activity - AltC Sponsor LLC
Transaction Description
- On May 7, 2024, AltC Acquisition Corp. ("AltC") stockholders approved the business combination between AltC and Oklo Inc. ("Oklo")
- The transaction is expected to provide over $306 million of gross proceeds upon closing of the transaction, representing almost 100% of the AltC cash in trust prior to the redemption deadline
- The completion of the transaction is expected to occur on May 9, 2024
Oklo Description
- Oklo is an advanced fission technology and nuclear fuel recycling company
- Oklo's mission is to provide clean, reliable, affordable energy on a global scale through the design and deployment of next-generation fast reactor technology
SuRo Capital Investment
- On July 21, 2021, SuRo Capital had invested $0.3 million in AltC Sponsor LLC
- As a result of the investment, SuRo Capital received founder shares
AltC Description
- AltC Acquisition Corp. is a SPAC led by former Y Combinator president Sam Altman
- AltC is focused on opportunities in the broader technology space, specifically on companies with large addressable markets, a clear path to profitability, and potential for inorganic growth
AltCAcquisitionCorp.com | AltC Acquisition Corp. Stockholders Approve Business Combination with Oklo | Oklo, an Advanced Fission Technology Company, to Go Public via Merger with AltC Acquisition Corp.
7 | First Quarter 2024 |
Key Industry Themes
As a Percentage of Total Investment Portfolio at Fair Value at March 31, 2024
13.2%
30.9%
16.8%
19.4% 19.5%
Legend | Industry Theme | Fair Value | % of Portfolio |
($ in millions) | |||
Education Technology | $54.1 | 30.9% | |
Cloud & Big Data | $34.1 | 19.5% | |
Marketplaces | $33.9 | 19.4% | |
Financial Technology | $29.6 | 16.8% | |
Social, Mobile, & Consumer | $23.0 | 13.2% | |
Total(1) | $174.6 | 99.8% |
(1) Total may not sum due to rounding. The Sustainability industry theme accounted for $0.4 million or 0.2% of Total Investment Portfolio at March 31, 2024.
8 | First Quarter 2024 |
Financial Highlights
For the Quarter Ended March 31, 2024
First Quarter 2024 | |||
Amount | Per Share(1) | ||
($ in millions) | |||
Net Assets at Beginning of Period | $203.4 | $7.99 | |
Net Investment Loss | $(3.2) | $(0.13) | |
Net Realized Loss on Investments | $(0.4) | $(0.02) | |
Net Change in Unrealized Depreciation of Investments | $(18.4) | $(0.73) | |
Stock-Based Compensation | $0.4 | $0.06 | |
Net Assets at March 31, 2024(2) | $181.7 | $7.17 |
- Based on 25,353,284 shares outstanding at 3/31/2024.
due to rounding.
9 | First Quarter 2024 |
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SuRo Capital Corp. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 22:09:18 UTC.
