SuRo Capital Corp. Second Quarter 2024 Preliminary Investment Portfolio Update
SuRo Capital Corp. (NASDAQ: SSSS) provided a preliminary update on its investment portfolio for Q2 2024, projecting a net asset value (NAV) of $6.70 to $7.20 per share. The company made a $10 million investment in Canva, Inc. and a $15 million investment in CW Opportunity 2 LP during the quarter. SuRo Capital repurchased 2 million shares at $4.70 each through a Modified Dutch Auction Tender Offer, representing 7.9% of its outstanding shares. The company's liquid assets totaled approximately $57.6 million by June 30, 2024.
SuRo Capital's NAV per share was $7.17 as of March 31, 2024, and estimated at $6.70 to $7.20 as of June 30, 2024. The company held positions in 39 portfolio companies, with nearly $55 million in investable capital and $20.7 million authorized for share repurchases under its Share Repurchase Program. SuRo Capital plans to announce its full Q2 2024 results in August 2024.
- Completed $10 million investment in Canva, Inc.
- Completed $15 million investment in CW Opportunity 2 LP.
- Repurchased 2 million shares at $4.70 per share, reducing outstanding shares by 7.9%.
- Liquid assets totaled approximately $57.6 million as of June 30, 2024.
- Nearly $55 million in investable capital.
- Net asset value per share declined from $7.17 as of March 31, 2024 to an estimated $6.70 to $7.20 as of June 30, 2024.
Insights
SuRo Capital’s recent updates provide several notable insights for investors. Firstly, the net asset value (NAV) is projected to be between
The investments in Canva, Inc. and CoreWeave, Inc. signal a strategic pivot towards high-growth sectors. Canva’s user base of 170 million reinforces its market position, while CoreWeave’s AI cloud computing focus aligns with current tech trends, particularly in AI and cloud infrastructure. Both investments reflect SuRo Capital’s strategy to capture undervalued, high-growth opportunities.
The Modified Dutch Auction Tender Offer, repurchasing 2.0 million shares at
Investors should monitor how these strategies impact future NAV and overall market perception. The NAV range and new investments should be tracked against quarterly performance and broader market trends in tech and AI sectors.
SuRo Capital’s actions, including the latest investments and share repurchase programs, indicate a robust strategy to leverage market undervaluation and capitalize on emerging opportunities. The investment in Canva, a top player in the design software market and CoreWeave, an AI infrastructure provider, position SuRo well within rapidly growing industries. Canva’s extensive user base suggests stable demand, while CoreWeave’s AI offerings place it at the forefront of a burgeoning tech niche.
The share repurchase program and Dutch Auction Tender Offer both aim to enhance shareholder value by reducing outstanding shares, which could lead to higher earnings per share and NAV per share, assuming stable or appreciating portfolio values. This is a classical approach to return value directly to shareholders, especially in scenarios where management believes the stock is undervalued.
Retail investors need to understand that these strategic moves could yield substantial long-term benefits, especially if the market conditions favor the growth trajectories of Canva and CoreWeave. Monitoring the upcoming quarterly results will be important to gauge the efficacy of these investments and the overall market reaction to SuRo’s strategies.
Net Asset Value Anticipated to be
NEW YORK, July 11, 2024 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2024.
“As we have previously mentioned, we remain incredibly enthusiastic about both our investment pipeline and our current portfolio as the IPO market strengthens and new opportunities at compelling valuations continue to come to light. We continue to actively execute on these opportunities. During the second quarter, we completed a
“With these exciting new additions to our portfolio, and nearly
“As we have consistently demonstrated, SuRo Capital is committed to initiatives that enhance shareholder value, and we believe the market is currently undervaluing our portfolio. Given the discount our stock has traded at compared to net asset value per share, we believe our recently completed Modified Dutch Auction Tender Offer was an efficient and accretive deployment of capital. As announced in the first quarter and executed during the second quarter, the Modified Dutch Auction Tender Offer resulted in the purchase of 2.0 million shares of common stock for
As previously reported, SuRo Capital’s net assets totaled approximately
Investment Portfolio Update
As of June 30, 2024, SuRo Capital held positions in 39 portfolio companies – 35 privately held and 4 publicly held, some of which may be subject to certain lock-up provisions.
During the three months ended June 30, 2024, SuRo Capital made the following investments, excluding short-term US treasuries:
| Portfolio Company | Investment | Transaction Date | Amount |
| Canva, Inc. | Common Shares | 4/17/2024 | |
| CW Opportunity 2 LP | Class A Interest | 5/7/2024 | |
During the three months ended June 30, 2024, SuRo Capital exited or received proceeds from the following investments, excluding short-term US treasuries:
| Portfolio Company | Transaction Date | Net Proceeds | Realized Gain | |
| Architect Capital PayJoy SPV, LLC(1) | 6/28/2024 | $- | ||
| True Global Ventures 4 Plus Pte Ltd | 6/28/2024 | $- | ||
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(1) On June 28, 2024, SuRo Capital redeemed its Membership Interest in Architect Capital PayJoy SPV, LLC.
SuRo Capital’s liquid assets were approximately
As of June 30, 2024, there were 23,378,002 shares of the Company’s common stock outstanding.
Modified Dutch Auction Tender Offer
On February 14, 2024, our Board of Directors authorized a modified Dutch Auction tender offer (the “Tender Offer”) to purchase up to 2.0 million shares of our common stock at a price per share not less than
Share Repurchase Program
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 Investment Company Act of 1940, as amended, and the Securities Exchange Act of 1934, as amended.
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
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 second quarter ended June 30, 2024 results in August 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 X, LinkedIn, and at www.surocap.com.
Contact
SuRo Capital Corp.
(212) 931-6331
IR@surocap.com
FAQ
What is SuRo Capital's projected net asset value per share for Q2 2024?
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What was the outcome of SuRo Capital's Modified Dutch Auction Tender Offer?
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What is the total value of SuRo Capital's liquid assets as of June 30, 2024?
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