SuRo Capital(SSSS) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - SuRo Capital achieved its highest dividend adjusted NAV per share at $12.22, an increase of $0.61 from $11.61 at the end of 2021 [12][13] - The company ended the quarter with approximately $381 million in net asset value [12] - The NAV per share increase was driven by $0.69 per share from unrealized appreciation and $0.10 per share from realized gains, offset by a $0.14 per share decrease from net investment loss and a $0.11 decrease from dividends declared [29] Business Line Data and Key Metrics Changes - The top five positions accounted for approximately 63% of the investment portfolio at fair value, with the top 10 positions making up about 80% [14] - The investment portfolio allocation included 41% in financial technology, 34% in education technology, 16% in marketplaces, 5% in social and mobile companies, 4% in cloud and big data, and less than 1% in sustainability [28] Market Data and Key Metrics Changes - The NASDAQ was down roughly 20% year-to-date, with 45% of companies down 50% or more, and over 22% down 75% or more [9][10] - Forge Global's net revenue grew 75% year-over-year to $125 million, driven by a trading volume increase of 71% to $3.2 billion [17] Company Strategy and Development Direction - The company plans to remain judicious on pricing when assessing potential investment opportunities to create shareholder value [8] - SuRo Capital aims to capitalize on opportunities as valuations resettle across various industry groups, with over $170 million of investible capital available [11] - The company is focused on democratizing access to the venture capital ecosystem and maintaining its investment philosophy to deliver value for shareholders [23] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in late-stage venture capital and IPO activity, resulting in a quiet quarter with no new investments made [8] - The company anticipates providing additional clarity on future dividend distributions later in the year due to current market conditions [20] - Management expressed confidence in the existing portfolio companies and the potential for growth despite market volatility [11][22] Other Important Information - The Board of Directors authorized an additional $15 million for share repurchases, totaling $55 million, with over 580,000 shares repurchased for approximately $5 million since the increase [13][27] - As of March 31, the company had approximately $189.6 million in liquid assets, including $172.8 million in cash [31] Q&A Session Summary Question: Opportunities in Web 3 - Management is evaluating direct investments in Web 3 companies and is cautious about current aggressive valuations [36][37] Question: Trends in Private Market Valuations - Management noted that public markets have led private markets, with primary rounds now often structured or flat, indicating a potential convergence in valuations [39][40][41] Question: SPAC Market Insights - The SPAC market has slowed down due to public market conditions and regulatory uncertainties, impacting capital formation [46][47][48]