SuRo Capital Corp. Reports Third Quarter 2024 Financial Results

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]