SuRo Capital Corp. 6.00% Notes due 2026 Q4 FY2024 earnings call

Mark Klein started by discussing SuRo's history and the current portfolio inflection point, highlighting upcoming IPOs like CoreWeave, Canva, Whoop, etc. CoreWeave filed S-1, had significant revenue growth, signed contracts with OpenAI and acquired Weights & Biases. OpenAI investment details, its growth in users and revenue. Vast Data's data management solution, partnerships and ARR. ServiceTitan's successful IPO, Canva's user and revenue stats, Whoop's international expansion and partnerships, Liquid Death's marketing and product expansion. Allison Green provided details on investment activity like investments in Vast Data, CoreWeave, Whoop, Orchard; exits from Oklo, PublicSquare; note repurchase program for 6% notes due 2026 and issuance of 6.5% convertible notes due 2029; liquidity and share repurchase program details.

For the fourth quarter, SuRo Capital ended with a net asset value of $157.6 million or $6.68 per share. Top five positions as of December 31st were CoreWeave, OpenAI, Learneo, Blink Health and Whoop, accounting for approximately 44% of the investment portfolio at fair value. Segmented by seven general investment themes, artificial intelligence, infrastructure and applications represented approximately 28% of the investment portfolio at fair value. Software-as-a-Service and Applications and Consumer Goods and Services were next largest with approximately 24% and 14% respectively. Education Technology was ~13%, Logistics & Supply Chain ~11%, Financial Technology & Services 8% and SuRo Sports 2% as of December 31st.

Mark Klein mentioned they don't typically give guidance on go forward NAV but noted math around CoreWeave and OpenAI could give an indication. Also, spoke about expected IPOs like CoreWeave this month, Lime, Canva by end of year, Liquid Death early next year, and Vast potentially going public this year but it's market-dependent.

Q: Brian McKenna asked about internal base case expectation for NAV growth in 2025 and legacy portfolio markdowns.

A: Mark Klein said they don't typically give go forward NAV guidance, but math around CoreWeave and OpenAI can give an indication, and Learneo is the biggest weight on the downside.

Q: Marvin Fong asked about capital structure and appetite for additional notes.

A: Mark Klein said they've retired $35 million of 6% notes and issued 6.5% convertible notes, debt number stayed same, and they're comfortable with current leverage, not anticipating additional convertible securities.

Q: Brian McKenna followed up asking about total dollar amount of pre-IPO investments and percent making it to public markets.

A: Mark Klein said CoreWeave may go public this month, Lime, Canva, Liquid Death, Vast have potential to go public within end of this year to early next year, depending on market.