Q4 & FYE 2024 Earnings Call March 11, 2025 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 state ...

Invests $54.5 Million in AI Infrastructure in 2024 CoreWeave, Inc., Single Largest Initial Investment in Fund’s History, Files for IPO Net Asset Value of $6.68 Per Share as of December 31, 2024 NEW YORK, March 11, 2025 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024. Net assets totaled approximately $157.6 million, or $6.68 per share, at December 3 ...

Core Viewpoint - SuRo Capital Corp. will report its financial results for the quarter and fiscal year ended December 31, 2024, on March 11, 2025, after the U.S. market closes [1] Group 1: Financial Reporting - The financial results announcement is scheduled for March 11, 2025, after market close [1] - A conference call and webcast for investors will be held at 2:00 p.m. PT (5:00 p.m. ET) on the same day [2] - The conference call access numbers are provided for both U.S. and international participants, along with the conference ID [2][3] Group 2: Company Overview - SuRo Capital Corp. is a publicly traded investment fund focused on high-growth, venture-backed private companies [4] - The company aims to build a portfolio of emerging private companies through a disciplined investment approach [4] - SuRo Capital is headquartered in New York, NY, with an office in San Francisco, CA [4]

Core Insights - SuRo Capital Corp. has reported a preliminary update on its investment portfolio for Q4 2024, highlighting a net asset value estimated between $6.50 to $7.00 per share [2][4] - The company emphasizes its focus on AI strategy and has achieved notable exits, including a successful IPO of ServiceTitan and a full exit from Oklo with over 20 times return on investment [4][3] - The investment portfolio includes 37 companies, with significant investments in AI infrastructure and emerging consumer brands [5][3] Investment Highlights - SuRo Capital's largest investment, CoreWeave, completed a $650 million secondary share sale, indicating strong market confidence [4] - The company increased its investment in CoreWeave to a total of $25 million and invested $12 million in VAST Data, enhancing its AI infrastructure portfolio [4][5] - The company reported liquid assets of approximately $23.6 million as of December 31, 2024, consisting of cash and publicly traded securities [9] Financial Transactions - SuRo Capital has engaged in a Note Purchase Agreement allowing for the issuance of up to $75 million in convertible notes, with $25 million already issued [10][11] - The company has repurchased 1,213,304 of its 6.00% Notes due 2026 under a discretionary note repurchase program, with a total of $35.3 million repurchased as of January 16, 2025 [15][14] - The Share Repurchase Program has been extended, allowing for an additional $25 million in share repurchases, with a total of over 6 million shares repurchased since its inception [16][17]

Investment Portfolio - The fair value of the company's investment portfolio as of September 30, 2024, was $199,302,778[110] - The fair value of the company's investment portfolio as of September 30, 2023, was $193,492,718, with total investments funded during the same period reaching $21,133,257[113] - The company held 2,296,037 remaining PSQ Holdings, Inc. public warrants as of September 30, 2024[112] - The company invested a total of $21,133,257 in various companies during the nine months ended September 30, 2023[113] Investment Strategy and Philosophy - The company focuses on equity securities of rapidly growing venture capital-backed emerging companies[108] - The investment strategy primarily involves non-controlling equity and equity-related investments, which typically do not produce current income[110] - The company aims to maximize total return through capital gains on equity investments and income from debt investments[108] - The investment philosophy emphasizes identifying promising investments across key industry themes such as Software-as-a-Service and Artificial Intelligence[108] Financial Performance - During the nine months ended September 30, 2024, the company realized a net loss on investments of $14,167,198, with total proceeds from investments amounting to $14,941,469[112] - Total investment income for the nine months ended September 30, 2024, was $3,444,161, a decrease from $4,137,046 in the same period of 2023[116] - The company reported total operating expenses of $13,530,561 for the nine months ended September 30, 2024, compared to $14,832,577 for the same period in 2023[116] - Net investment loss for the nine months ended September 30, 2024, was $(10,086,400), compared to $(10,695,531) for the same period in 2023[116] Unrealized Gains and Losses - The net change in unrealized appreciation for the nine months ended September 30, 2024, was $(13,769,932), compared to $39,427,513 for the same period in 2023, indicating a significant decline in unrealized gains[123] - The net change in unrealized appreciation for the three months ended September 30, 2024, was $11,614,384, down from $29,323,067 in the same period of 2023, a decrease of approximately 60.4%[121] Debt and Liquidity - The company believes it has ample liquidity to support near-term capital requirements[129] - The total contractual obligations as of September 30, 2024, amounted to $75.2 million, including $49.7 million for 6.00% Notes due 2026 and $25.0 million for 6.50% Convertible Notes due 2029[130] - The company issued $25.0 million in aggregate principal amount of 6.50% Convertible Notes due 2029, with proceeds of $24.3 million received net of underwriting discounts[126] - The company issued an additional $5.0 million in 6.50% Convertible Notes due 2029, bringing the total outstanding amount to $30.0 million[127] Share Repurchase and Distribution - The company repurchased 2,000,000 shares, representing 7.9% of outstanding shares, at a price of $4.70 per share during the Modified Dutch Auction Tender Offer[132] - The Share Repurchase Program was extended until October 31, 2025, with approximately $25.0 million remaining available for repurchase as of November 7, 2024[127] - Total distribution paid to stockholders amounted to $887,240 on August 24, 2016, with $820,753 representing realized gains[140] - The company intends to focus on equity-based investments primarily for capital gains, with distributions expected to be less consistent than other BDCs[140] Management and Regulation - The company operates as an internally managed, non-diversified closed-end management investment company regulated as a business development company (BDC)[108] - The company has internalized its management to align the interests of stockholders with management, eliminating fees under an investment advisory agreement[110] - The company is subject to risks including economic downturns, market volatility, and changes in laws or regulations that could impact its operations and investment activities[107] Changes in Investment Income - Investment income decreased to $888,717 for the three months ended September 30, 2024, down from $1,465,746 for the same period in 2023, representing a decline of approximately 39.4%[117] - For the nine months ended September 30, 2024, investment income decreased to $3,444,161 from $4,137,046 in the same period of 2023, a decline of approximately 16.8%[117] Operating Expenses - Total operating expenses decreased to $4,096,590 for the three months ended September 30, 2024, from $4,134,172 in the same period of 2023, a reduction of about 0.9%[118] - During the nine months ended September 30, 2024, operating expenses, including interest payments, were $13,530,561, compared to $14,832,577 for the same period in 2023[127]

Financial Data and Key Metrics Changes - The company ended Q3 2024 with a net asset value (NAV) of $157.4 million, or $6.73 per share, down from $6.94 in Q2 2024 [19][69] - The decrease in NAV per share was primarily driven by a $0.59 per share decrease from net realized losses on portfolio investments, a $0.14 per share decrease due to net investment loss, and a $0.01 per share decrease from realized loss on the partial repurchase of 6% notes due 2026 [69] Business Line Data and Key Metrics Changes - AI investments now represent 18% of the company's gross assets at the end of Q3 2024, increasing to approximately 23% after additional investments post-quarter [10][11] - The top five positions accounted for approximately 47% of the investment portfolio at fair value, while the top ten positions accounted for about 75% [20] Market Data and Key Metrics Changes - AI startups accounted for 31% of total global venture funding in Q3 2024, with OpenAI's $6.6 billion financing being the largest venture capital deal of all time [11][22] - CoreWeave is positioned for significant revenue growth, with estimated revenues of $500 million for 2023, $2 billion for 2024, and $8 billion for 2025 [33] Company Strategy and Development Direction - The company aims to democratize access to venture capital opportunities, focusing on late-stage investments in AI and technology companies [7][8] - The strategy includes prioritizing industry-agnostic infrastructure investments over unproven applications, positioning the company to capitalize on the growth of AI [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential reopening of the IPO market, highlighting several portfolio companies that are well-positioned for IPOs [51] - The company believes it is strategically positioned to benefit from a revitalized IPO market, with a balanced portfolio of late-stage companies [51] Other Important Information - The company has executed a note purchase agreement for 6.5% convertible notes due 2029, with plans to issue up to $75 million in aggregate principal amount [61][64] - The share repurchase program has been expanded to $64.3 million, with approximately $25 million remaining authorized [71] Q&A Session Summary - There were no questions during the Q&A session, and the operator concluded the call [73]

Financial Performance - As of September 30, 2024, SuRo Capital's net asset value is estimated to be between $6.50 and $7.00 per share, compared to approximately $8.41 per share at September 30, 2023[8]. - The company reported net assets of approximately $162.3 million at June 30, 2024, indicating a significant increase in net assets year-over-year[8]. Investment Activities - The company held positions in 36 portfolio companies as of September 30, 2024, including 32 privately held and 4 publicly held[9]. - During Q3 2024, SuRo Capital invested $17.5 million in OpenAI Global, LLC and $5.0 million in CoreWeave, Inc.[10]. - The company exited investments in OneValley, Inc. and Churchill Sponsor VII LLC, realizing net proceeds of $3.0 million and incurring a loss of $6.6 million, respectively[11]. - The company has made investments in accordance with its investment strategy, focusing on high-potential portfolio companies[7]. Debt and Financing - The total outstanding principal amount of the company's Convertible Notes is now $30.0 million after issuing an additional $5.0 million in October 2024[5]. - Interest on the Convertible Notes is paid quarterly at a rate of 6.50% per year, with the first payment made on September 30, 2024[6]. Future Outlook - SuRo Capital expects to announce its third quarter results in November 2024[12]. - Forward-looking statements indicate potential risks and uncertainties that could affect future performance, including market volatility[14].

Core Insights - SuRo Capital Corp. reported a net asset value of $6.73 per share as of September 30, 2024, down from $6.94 per share at June 30, 2024, and $8.41 per share at September 30, 2023 [1][11][29] - The company has made significant investments in AI, including a $17.5 million investment in OpenAI and a $5.0 million investment in CoreWeave during the third quarter of 2024 [3][7] - The total fair value of SuRo Capital's investment portfolio was approximately $199.3 million, with 37 portfolio companies, of which 33 are privately held [4][24] Financial Performance - For the quarter ended September 30, 2024, SuRo Capital reported a net investment loss of $3.2 million and a net realized loss on investments of $13.7 million [11][26] - The net change in unrealized appreciation of investments was $11.6 million, contributing to a net decrease in net assets of $5.5 million for the quarter [11][27] - The company’s liquid assets were approximately $39.5 million as of September 30, 2024, consisting of cash and publicly traded securities [13] Investment Strategy - SuRo Capital has focused on high-growth sectors, particularly in AI infrastructure and software solutions, positioning itself to capitalize on potential IPO opportunities [2][3] - The company has executed a disciplined approach to capital deployment, with a notable increase in investment activity during 2024 [3][4] - The top five investments accounted for approximately 47% of the total portfolio fair value, indicating a concentrated investment strategy [4][5] Recent Transactions - Subsequent to the quarter-end, SuRo Capital invested an additional $5.0 million in CoreWeave and $12.0 million in VAST, further expanding its AI infrastructure portfolio [9][10] - The company has also engaged in a note repurchase program, repurchasing a portion of its 6.00% Notes due 2026 [17][18] Shareholder Returns - The company has authorized a share repurchase program, allowing for the repurchase of up to $64.3 million in common stock, with approximately $25.0 million remaining for future purchases [19][20] - Since the inception of the share repurchase program in August 2017, SuRo Capital has repurchased over 6.0 million shares for approximately $39.3 million [20]

Core Points - SuRo Capital Corp. will report its financial results for the quarter ended September 30, 2024, after the U.S. market closes on November 7, 2024 [1] - A conference call and webcast for investors will be held at 2:00 p.m. PT (5:00 p.m. ET) on the same day [2] - The company is a publicly traded investment fund focused on high-growth, venture-backed private companies [4] Financial Reporting - The financial results announcement is scheduled for November 7, 2024, after market close [1] - A live conference call will be accessible to U.S. participants at 866-580-3963 and international participants at +1 786-697-3501, with a conference ID of 9289675 [2] - An archived replay of the conference call will be available until November 14, 2024 [3] Company Overview - SuRo Capital Corp. is headquartered in New York, NY, with an additional office in San Francisco, CA [4] - The company aims to create a portfolio of high-growth emerging private companies through a disciplined investment approach [4] - Investors can access these companies through SuRo Capital's publicly traded common stock [4]

Analyst Background - Dan Plettner specializes in qualitative investigative research methods focusing on Closed-End Funds and underfollowed securities [1] - Dan Plettner has been investing since his teen years and completed his undergraduate degree Magna Cum Laude from Miami University [1] - He won the "NSD award" as a retail Financial Advisor at Morgan Stanley Dean Witter and later served as a Closed-End Fund Product Specialist at Morgan Stanley's International Headquarters in Manhattan [1] - Dan Plettner attained his MBA from New York University [1] Investment Position - The analyst holds a beneficial long position in SSSS through stock ownership, options, or other derivatives [2] - SSSS represents over 5% of the analyst's overall investing portfolio [3] - The analyst is more likely to net harvest some gains rather than further increase the percentage allocation in SSSS [3] - The analyst expects to remain long on SSSS for some time and does not envision selling SSSS short under any circumstances [3] Disclosure - The analyst is not receiving compensation for the article other than from Seeking Alpha [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2] - Seeking Alpha's analysts are third-party authors who may not be licensed or certified by any institute or regulatory body [4]