SuRo Capital Q3 2022 Earnings Report
Key Takeaways
SuRo Capital reported its Q3 2022 financial results, with net assets totaling approximately $221.8 million, or $7.83 per share. The company repurchased 2.0 million shares of common stock for $6.60 per share via a Modified Dutch Auction Tender Offer.
Net assets totaled approximately $221.8 million, or $7.83 per share, at September 30, 2022.
The Company’s top five portfolio company investments accounted for approximately 62% of the total portfolio at fair value as of September 30, 2022.
Liquid assets were approximately $154.3 million as of September 30, 2022, consisting of cash, US Treasuries, and securities of publicly traded portfolio companies not subject to lock-up restrictions at quarter-end.
The company repurchased 2,000,000 shares at a price of $6.60 per share representing 6.6% of its outstanding shares via Tender Offer.
SuRo Capital
SuRo Capital
Forward Guidance
SuRo Capital anticipates continued pressure from declining macroeconomic conditions and the unfavorable IPO market, which they believe will present compelling opportunities in the secondary market. The company's cash and US treasuries position of approximately $140.0 million allows them to be opportunistic in evaluating new, late stage, high-growth companies at increasingly compelling valuations.
Positive Outlook
- Considerable cash and US treasuries position allows opportunistic evaluation of new, late stage, high-growth companies.
- Belief that declining macroeconomic conditions and unfavorable IPO market will present compelling opportunities in the secondary market.
- Active Share Repurchase Program and recent Modified Dutch Auction Tender Offer seen as efficient and accretive deployments of capital.
- Share Repurchase Program extended through October 31, 2023.
- Commitment to shareholder value-enhancing initiatives.
Challenges Ahead
- First nine months of 2022 were the worst for equity markets in the past two decades.
- Continued dramatic slowdown in the IPO market.
- Expectation of continued acceleration in the repricing of private securities.
- Continued pressure from declining macroeconomic conditions.
- Unfavorable IPO market.