SuRo Capital Corp. 6.00% Notes due 2026 Q1 FY2025 earnings call

Mark Klein began by discussing the challenging market environment in the first quarter of 2025, with public markets like the NASDAQ experiencing significant declines. He highlighted portfolio companies: OpenAI's $40 billion funding round at a $300 billion post-money valuation with 500 million weekly active users; CoreWeave's IPO and $11.9 billion contract with OpenAI, stock price up over 35%; Canva's Visual Suite 2.0 and rapid growth with over 145 million users; Plaid's $5 billion investment; WHOOP's international expansion and athlete endorsements. Allison Green provided details on investments, liquidity, note repurchase program, and convertible notes, and NAV per share details.

Segmented by 7 general investment themes, the top allocation of SuRo Capital's investment portfolio at quarter-end was to Artificial Intelligence Infrastructure & Applications representing approximately 28% of the investment portfolio at fair value. Software-as-a-Service and Consumer Goods & Services were the next two largest categories of approximately 22% and 17% of our portfolio, respectively. 12% of our portfolio was invested in Financial Technology & Services and Education Technology companies accounted for approximately 12% of the fair value of our portfolio. The Logistics & Supply Chain category accounted for approximately 8% of the fair value of our portfolio and SuRo Sports accounted for 2% as of March 31st.

Mark Klein stated that when lockup periods expire, they typically exit public positions and deploy capital into various opportunities, with a focus on AI and AI-adjacent companies. Allison Green's comments didn't have specific new guidance but covered investment activities and liquidity.

Risks include market volatility affecting valuations, lockup restrictions on public securities, and uncertainties in the public market environment impacting portfolio company valuations.

Q: Brian McKenna asked about ServiceTitan's lockup expiration plan and investment opportunities.

A: Mark Klein said they exit public positions on lockup expiration and see opportunities in AI and related areas.

Q: Marvin Fong asked about discount on unregistered shares and OpenAI's nonprofit situation.

A: Allison Green explained discount relates to unregistered shares; Mark Klein said nonprofit involvement likely not impactful.

Q: Alex Paris asked about capital return rules.

A: Mark Klein said they communicate dividend strategy and aim to distribute net realized gains by end of year or early next year.

Q: Brian McKenna asked about OpenAI valuation markup.

A: Mark Klein explained the difference between pre-money and post-money valuations.