SuRo Capital Corp. Fourth Quarter and Fiscal Year 2023 Preliminary Investment Portfolio Update
January 16 2024 - 4:05PM
SuRo Capital Corp. (“SuRo Capital”, the
“Company”, “we”, “us”, and “our”) (Nasdaq:
SSSS) today provided the following preliminary
update on its investment portfolio for the fourth quarter and
fiscal year ended December 31, 2023.
“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 to $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.
ContactSuRo Capital Corp.(212)
931-6331 IR@surocap.com
SuRo Capital (NASDAQ:SSSS)
Historical Stock Chart
From Jun 2024 to Jul 2024
SuRo Capital (NASDAQ:SSSS)
Historical Stock Chart
From Jul 2023 to Jul 2024