SURO CAPITAL CORP. Q3 FY2023 earnings call

• Market conditions: Third quarter 2023 had broad ongoing weakness in public equity and bond markets; IPO market paused with poor performance of recent IPOs, likely to reopen in 1H 2024; private markets volatile with secondary trading inconsistent with public comparables.
• Investments: Invested $7.3 million in new and follow-on investments during Q3; executed several new investments; one SPAC investment closed merger, two other SPACs announced definitive agreements to merge with target companies.
• NAV: Ended Q3 with net asset value of $212 million or $8.41 per share, up from $7.35 per share in Q2 2023.
• Share repurchase: Board authorized an additional $5 million for share repurchases and extended the share repurchase program through October 31, 2024; repurchased 186,931 shares of common stock for approximately $680,000 during the quarter.

Segmented by six general investment themes, the top allocation of SuRo Capital's investment portfolio at quarter end was to education technology, representing approximately 40% of the investment portfolio at fair value. Marketplaces was the second largest category, representing approximately 22% of the portfolio. The financial technology category accounted for approximately 18% of the investment portfolio, and approximately 15% of the portfolio was invested in cloud and big data companies. Social and mobile accounted for approximately 4% of the fair value of the portfolio and sustainability accounted for less than 1% of the fair value of the portfolio as of September 30.

• IPO market is broadly closed and will likely reopen during the first or second quarter of 2024.
• Remain patient and selective as we evaluate new opportunities; continue to focus on potential entry levels.
• Plan to continue to opportunistically monetize our public issues as market conditions improve.

• Market volatility, including impact of geopolitical unrest (wars in Israel and Ukraine) on equity markets.
• Disconnect between pricing of late-stage secondary opportunities and public markets; private secondary markets are opaque with inconsistent valuations.
• Potential for actual results to differ materially from forward-looking statements due to various factors including market volatility, geopolitical events, and uncertainties in private market valuations.