SuRo Capital(US:SSSS)2021-08-05 02:52Financial Data and Key Metrics Changes - As of June 30, 2021, the net asset value (NAV) per share reached $16.56, an increase of $1.05 on a dividend-adjusted basis from the prior quarter [13] - Total net assets amounted to approximately $440 million, compared to $436 million in the first quarter [13] - The company declared a dividend of $2.25 per share, payable on September 30, 2021, following $3 per share declared in the first half of the year, totaling $5.25 per share declared to date [14][15] Business Line Data and Key Metrics Changes - The top five positions accounted for approximately 61% of the investment portfolio at fair value, with the top ten positions accounting for about 78% [17] - Coursera, the largest position, saw its shares close at $39.56 per share at the end of Q2, up from the IPO price of $33 [18] - Coursera's revenue grew by 38% year-over-year to over $102 million, with its enterprise segment growing 69% year-over-year [23] Market Data and Key Metrics Changes - The education technology sector represented approximately 51% of the investment portfolio at fair value, while marketplaces accounted for 16% and financial technology for 15% [72] - The digital advertising market is expected to grow from $335 billion in 2020 to over $600 billion by 2024, indicating significant growth potential for portfolio companies like Nextdoor [31] Company Strategy and Development Direction - The company is focusing on expanding its investment strategy beyond core equity into private credit and pre-SPAC merger PIPEs, aiming to democratize access to asset classes [40] - The company is actively evaluating new investment opportunities, with a robust deal flow noted in the private credit strategy [94][106] - The company plans to declare at least one more large dividend in November, subject to ongoing portfolio activity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustained demand for online learning, driven by partnerships with global brands and the ongoing impact of the pandemic [21][27] - The company believes it is well-positioned to capture benefits from the long-term structural changes in education delivery and consumption [28] - Management noted that the current market weakness in SPACs presents selective capital deployment opportunities [44] Other Important Information - The company has invested in four different SPAC sponsor equity deals to date, with an aggregate investment size of $3.5 million [50] - The company reported a cash balance of approximately $130.1 million as of June 30, 2021, providing a strong position to deploy capital against attractive opportunities [75] Q&A Session Summary Question: Commentary on private credit strategy and deal flow expectations - Management noted good deal flow in the private credit strategy and is actively evaluating several opportunities [94] Question: Current shares of Coursera after selling the first tranche - The company retained 75% of its initial position, with 2,346,271 shares remaining, expected to be freely tradable soon [97] Question: Details on Skillsoft investment and trading status - The company participated in a PIPE for Skillsoft, and shares will be freely tradable once the registration statement is effective [100] Question: Plans for stock buyback to address share price discount - Management confirmed ongoing evaluations of stock buybacks as a method to enhance shareholder value, alongside recent distributions [103] Question: Ability to deploy capital given market conditions - Management indicated a robust pipeline of opportunities and a high confidence level in capital deployment despite market conditions [106]