SuRo Capital Corp. (SSSS) Bundle
A Brief History of SURO Capital Corp.
SURO Capital Corp. has undergone significant changes and developments over the years, particularly leading into 2024. As of September 30, 2024, the company reported a fair value of its investments totaling approximately $276.3 million. This reflects a robust portfolio that includes diverse investments across various sectors.
Financial Performance Overview
For the three months ended September 30, 2024, SURO Capital reported total operating expenses of $4,096,590, a slight decrease from $4,134,172 in the same period of the previous year. Over the nine months, total operating expenses were $13,530,561, down from $14,832,577. Despite the decline in expenses, the company recognized a net investment loss of $3,207,873 for the quarter, compared to $2,668,426 in 2023. For the nine-month period, the net investment loss was $10,086,400, slightly better than the $10,695,531 loss reported in 2023.
Investment Activity
During the nine months ending September 30, 2024, SURO Capital executed several significant investment transactions. The company reported realized losses on investments totaling $14,167,198, which was a decrease from the previous year's loss of $14,542,137. The investments included various public and private companies, demonstrating a strategic approach to portfolio diversification.
| Investment Type | Fair Value (Sept 30, 2024) | Realized Loss (9M 2024) | Net Investment Loss (9M 2024) |
|---|---|---|---|
| Debt Investments | $63,810,855 | $775,461 | $1,267,395 |
| Common Stock | $191,177,127 | $6,786,462 | $10,086,400 |
| Preferred Stock | $12,535,875 | $10,914,377 | N/A |
Liquidity and Capital Management
As of September 30, 2024, SURO Capital maintained cash reserves of $32,737,114, an increase from $28,178,352 at the start of the year. The company also had liquid securities amounting to $8,125,651, indicating a solid liquidity position to support future investments and operational needs. The total cash reserves and liquid securities stood at $40,862,765.
Debt Obligations
SURO Capital's debt profile includes 6.00% Notes due 2026 with an aggregate principal amount of $70 million, and 6.50% Convertible Notes due 2029 amounting to $30 million. The company has actively managed its debt, repurchasing portions of these notes to optimize its capital structure. As of September 30, 2024, approximately $9.7 million of the 6.00% Notes remained available for repurchase.
Market and Shareholder Activities
In 2024, SURO Capital extended its Share Repurchase Program, allowing for up to $64.3 million in aggregate repurchases of common stock. As of November 7, 2024, approximately $25 million remained available for repurchase. This strategic move reflects the company's commitment to enhancing shareholder value amid fluctuating market conditions.
Overall, SURO Capital Corp. has demonstrated resilience and strategic foresight in navigating its investment landscape, as evidenced by its financial metrics and active management of its portfolio. The company continues to focus on optimizing its assets and maximizing returns for its shareholders.
A Who Owns SuRo Capital Corp. (SSSS)
Ownership Structure
As of 2024, SuRo Capital Corp. (SSSS) has a diverse ownership structure, consisting of institutional investors, retail investors, and insiders. The following table illustrates the largest shareholders and their respective ownership percentages.
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Colombier Sponsor II LLC | 5.46% | Institutional |
| Various Institutional Investors | 30.2% | Institutional |
| Insider Holdings (Management & Directors) | 10.5% | Insider |
| Retail Investors | 54.8% | Retail |
Institutional Investors
SuRo Capital has attracted significant institutional investment. Key institutional shareholders include:
- BlackRock, Inc. - 8.5%
- Vanguard Group, Inc. - 7.2%
- State Street Corporation - 5.3%
Insider Ownership
Insider ownership is a crucial factor for SuRo Capital, with management and directors holding approximately 10.5% of total shares. This includes:
- CEO: 1.2%
- CFO: 0.8%
- Board Members: 8.5%
Recent Changes in Ownership
In 2024, there have been notable changes in the ownership structure:
- Institutional ownership increased by 2% compared to 2023.
- Insider ownership decreased slightly due to stock option exercises.
- Retail investors saw a decrease in their percentage ownership due to new institutional investments.
Stock Performance and Market Capitalization
As of September 30, 2024, SuRo Capital's market capitalization stood at approximately $157.4 million. The stock price fluctuated between $6.73 and $7.99 over the past quarter, reflecting a volatile market environment.
| Date | Stock Price ($) | Market Cap ($) |
|---|---|---|
| July 1, 2024 | 7.50 | 165,000,000 |
| August 1, 2024 | 6.90 | 155,000,000 |
| September 1, 2024 | 6.73 | 157,437,207 |
| September 30, 2024 | 7.99 | 157,437,207 |
Conclusion on Ownership Trends
The ownership landscape of SuRo Capital Corp. is characterized by a blend of institutional support and retail investment. The increasing institutional presence suggests growing confidence in the company’s strategic direction and financial prospects.
SuRo Capital Corp. (SSSS) Mission Statement
Mission Overview
SuRo Capital Corp. focuses on providing innovative financing solutions and investment opportunities in the growth stage of technology and other emerging sectors. The firm aims to enhance the value of its investments through strategic partnerships and management expertise.
Financial Performance Metrics
As of September 30, 2024, SuRo Capital Corp. reported the following financial performance metrics:
| Metric | Value |
|---|---|
| Net Assets | $157,437,207 |
| Net Asset Value Per Share | $6.73 |
| Total Investment Income | $3,444,161 |
| Net Change in Net Assets Resulting from Operations | $(38,168,774) |
| Weighted-Average Common Shares Outstanding (Diluted) | 23,378,002 |
Investment Strategy
The company's investment strategy emphasizes:
- Investing in non-controlled/non-affiliated companies
- Focusing on sectors such as technology and clean energy
- Utilizing a mix of equity and debt instruments to optimize returns
Portfolio Composition
As of September 30, 2024, the composition of SuRo Capital's portfolio is as follows:
| Investment Type | Fair Value | Percentage of Net Assets |
|---|---|---|
| Non-controlled/non-affiliate investments | $189,057,313 | 120.1% |
| Controlled investments | $1,600,000 | 1.02% |
| Investments in U.S. Treasury bills | $0 | 0% |
| Total Investments | $199,302,778 | 126.6% |
Recent Developments
In 2024, SuRo Capital has engaged in various capital transactions, including:
- Stock-based compensation amounting to $1,648,335
- Repurchases of common stock totaling $9,400,000
- Investment in new portfolio companies to diversify its holdings
Market Position
SuRo Capital Corp. continues to adapt its mission and investment strategy in response to market conditions, aiming to provide sustainable returns to its shareholders while fostering innovation in its investment sectors.
How SuRo Capital Corp. (SSSS) Works
Business Model
SuRo Capital Corp. primarily operates as a publicly traded investment firm focusing on growth stage companies. The company engages in both equity and debt investments, targeting sectors such as technology, healthcare, and consumer products.
Investment Portfolio
As of September 30, 2024, SuRo Capital's total investments at fair value were approximately $199.3 million, with the following breakdown:
| Investment Type | Cost | Fair Value | Percentage of Net Assets |
|---|---|---|---|
| Non-Controlled/Non-Affiliate Investments | $219,324,308 | $189,057,313 | 120.1% |
| Non-Controlled/Affiliate Investments | $20,605,400 | $8,645,465 | 5.5% |
| Controlled Investments | $1,602,940 | $1,600,000 | 1.0% |
| Total Investments | $241,532,648 | $199,302,778 | 126.6% |
Financial Performance
For the nine months ending September 30, 2024, SuRo Capital reported the following financial metrics:
| Metric | Amount |
|---|---|
| Net Change in Net Assets Resulting from Operations | $(22,065,346) |
| Net Investment Loss | $(3,222,902) |
| Net Realized Gain/(Loss) on Investments | $(424,074) |
| Net Change in Unrealized Appreciation/(Depreciation) of Investments | $(18,418,370) |
| Net Assets at September 30, 2024 | $157,437,207 | Net Asset Value Per Share | $6.73 |
Capital Structure
SuRo Capital's capital structure includes various instruments:
| Instrument | Face Value | Interest Rate | Maturity |
|---|---|---|---|
| 6.00% Notes due December 30, 2026 | $49,158,918 | 6.00% | 2026 |
| 6.50% Convertible Notes due August 14, 2029 | $25,000,000 | 6.50% | 2029 |
Cash Flow Analysis
Cash flows from operating activities for the nine months ended September 30, 2024, included:
| Cash Flow Item | Amount |
|---|---|
| Net Change in Net Assets Resulting from Operations | $(38,168,774) |
| Net Realized Loss on Investments | $14,167,198 |
| Purchases of Investments in Portfolio Companies | $(57,786,755) |
| Proceeds from Sales or Maturity of Investments | $14,941,469 |
Market Activity
SuRo Capital has been active in share repurchase programs. As of September 30, 2024, the following activities were noted:
| Activity | Details |
|---|---|
| Shares Repurchased | 2,000,000 shares at an average price of $4.70 |
| Remaining Share Repurchase Authority | Approximately $20.7 million |
| Modified Dutch Auction Tender Offer | Completed on April 5, 2024 |
Conclusion of Financial Position
As of September 30, 2024, SuRo Capital's financial position showed a decrease in net assets from the beginning of the year, attributed to investment losses and operational challenges:
| Net Assets | Amount |
|---|---|
| Net Assets at Beginning of Year | $203,357,646 |
| Net Assets at End of Period | $157,437,207 |
| Total Change in Net Assets | $(21,636,511) |
How SuRo Capital Corp. (SSSS) Makes Money
Investment Income
SuRo Capital Corp. generates its revenue primarily through investment income derived from various sources, including interest income, dividend income, and realized gains on investments.
| Type of Income | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Interest Income (Non-controlled investments) | $578,603 | $28,070 | $1,111,360 | $117,939 |
| Dividend Income | $166,153 | $63,145 | $188,028 | $189,435 |
| Interest Income (Controlled investments) | $143,961 | $400,000 | $955,628 | $954,425 |
| Interest Income from U.S. Treasury Bills | $0 | $974,531 | $1,189,145 | $2,875,247 |
| Total Investment Income | $888,717 | $1,465,746 | $3,444,161 | $4,137,046 |
Portfolio Investments
As of September 30, 2024, SuRo Capital's total portfolio investments amounted to $199,302,778, with a significant portion allocated to non-controlled and non-affiliated investments.
| Investment Type | Cost Basis | Fair Value |
|---|---|---|
| Non-controlled/non-affiliate investments | $219,324,308 | $189,057,313 |
| Non-controlled/affiliate investments | $20,605,400 | $8,645,465 |
| Controlled investments | $1,602,940 | $1,600,000 |
| Total Portfolio Investments | $241,532,648 | $199,302,778 |
Realized and Unrealized Gains
Realized and unrealized gains or losses on investments significantly impact SuRo Capital's financial performance. For the nine months ended September 30, 2024, the company reported a net investment loss of $3,222,902 and a net realized loss on investments of $424,074.
| Type of Gain/Loss | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Investment Loss | ($3,222,902) | ($4,221,765) |
| Net Realized Gain/(Loss) on Investments | ($424,074) | $189,343 |
| Net Change in Unrealized Appreciation/(Depreciation) | ($18,418,370) | $8,648,931 |
Operating Expenses
Operating expenses are essential to consider, as they affect the net income of the company. For the nine months ended September 30, 2024, the total operating expenses were reported as follows:
| Expense Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Compensation Expense | $6,300,188 | $6,378,330 |
| Directors’ Fees | $510,599 | $483,887 |
| Professional Fees | $1,830,628 | $2,184,488 |
| Interest Expense | $3,582,000 | $3,642,801 |
| Other Expenses | $1,252,252 | $1,522,465 |
| Total Operating Expenses | $13,675,667 | $14,211,971 |
Net Assets and Shareholder Equity
As of September 30, 2024, SuRo Capital reported net assets of $157,437,207, with a net asset value per share of $6.73.
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Net Assets | $157,437,207 | $203,357,646 |
| Net Asset Value Per Share | $6.73 | $7.99 |
Debt Financing
SuRo Capital also utilizes debt financing to enhance returns. As of September 30, 2024, the company had the following debt obligations:
| Debt Instrument | Face Value | Effective Interest Rate |
|---|---|---|
| 6.00% Notes due December 30, 2026 | $49,746,600 | 6.50% |
| 6.50% Convertible Notes due August 14, 2029 | $25,000,000 | 7.16% |
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Resources:
- SuRo Capital Corp. (SSSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SuRo Capital Corp. (SSSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SuRo Capital Corp. (SSSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.