SURO Capital NASDAQ: SSSS reported a sharp increase in net asset value during its first-quarter 2026 earnings call, driven primarily by unrealized appreciation across its venture-backed portfolio. Management also outlined a board-approved proposal to transition from an internally managed business development company (BDC) to an externally managed structure through a new advisor jointly owned by members of SuRo’s team and Magnetar.
NAV jumps 76% in the quarter
Chairman and CEO Mark Klein said the first quarter marked “a defining moment” for the company, highlighting what he described as the largest quarter-over-quarter NAV increase in SuRo’s history. NAV rose to $14.24 per share as of March 31 from $8.09 per share at the end of 2025, an increase of $6.15 per share, or approximately 76%.
CFO Allison Green said SuRo ended the quarter with net assets of approximately $361.6 million, or $14.24 per share. She attributed the increase in NAV per share primarily to a $6.25 per share increase from net change in unrealized appreciation, plus $0.04 per share from net realized gains and $0.02 per share related to stock-based compensation. Those items were “partially offset” by a $0.16 per share decrease due to net investment loss during the quarter, Green said.
Portfolio highlights: WHOOP, OpenAI, Vast and Canva financings
Klein pointed to several high-profile private market financings as validation of SuRo’s strategy of providing public market investors access to venture-backed private companies.
Among the updates Klein highlighted:
- WHOOP announced a $575 million Series G financing at a $10.1 billion valuation. Klein said WHOOP reported 2.5 million members globally, 103% year-over-year bookings growth in 2025, a $1.1 billion exit run rate, and positive operating cash flow in 2025.
- OpenAI closed a financing round with $122 billion in committed capital at an $852 billion post-money valuation, which Klein framed as evidence that AI is “becoming a foundational technology layer” across industries.
- Vast Data was valued at $30 billion in a recent Series F financing, more than tripling its $9.1 billion valuation from 2023. Klein said the round included about $1 billion of primary and secondary capital and reflected demand for AI infrastructure such as data centers and high-performance computing.
- Canva launched an employee stock sale at a reported $42 billion valuation led by Fidelity, with J.P. Morgan Asset Management joining as a new investor, according to Klein.
Green said SuRo’s top five positions as of March 31 were WHOOP, OpenAI, Vast, Blink Health, and CW Opportunity 2 LP, together representing about 72% of the portfolio at fair value. The top 10 positions accounted for approximately 88% of the portfolio, she said.
Investing activity: TensorWave funding, ClickHouse investment after quarter-end
Management discussed investments aimed at expanding exposure to AI infrastructure. Klein said SuRo funded $5 million into a Magnetar special purpose vehicle invested in TensorWave as part of an up to $20 million commitment, with the remaining up to $15 million subject to certain conditions, including operational milestones.
Green provided additional detail, noting that the $20 million commitment was made on Dec. 31 to “Magnetar Opportunity 2025-4 LP,” an SPV invested in TensorWave, and SuRo funded $5 million on Jan. 2. As of May 5, $5 million of the commitment had been funded, with the remaining up to $15 million still conditional.
After quarter-end, Klein said SuRo made a new investment of approximately $10 million in ClickHouse, calling it a company positioned at the intersection of data infrastructure, AI, and real-time analytics. Green specified that on April 22 the company completed a $9.5 million investment, excluding fees, in ClickHouse Series A preferred shares through a secondary transaction. Because the ClickHouse investment occurred after March 31, Klein noted it was not included in the quarter-end NAV.
In response to a question from BTIG’s Marvin Fong about market conditions and structured investments, Klein described the AI private markets as “robust or perhaps frothy,” saying SuRo is “seeing more deals now than we’ve ever seen before.” He said the firm has been selective, citing TensorWave as “extremely well structured” due to the staged funding approach tied to conditions.
Klein also discussed ClickHouse on the call, saying the company “is growing at 250% year-over-year” and positioning it as an example of SuRo investing “in front” of broader market awareness, similar to earlier investments such as Vast and CoreWeave.
Realizations, liquidity, and CoreWeave-related distributions
Green said SuRo sold 440,246 shares of GrabAGun Digital Holdings Inc. during the quarter after lock-up restrictions were removed on Jan. 15. The sales generated net proceeds of approximately $1.4 million and a realized gain of about $891,000. As of March 31, SuRo held 599,754 shares, or about 58% of its original position.
Green also noted a distribution of approximately $246,000 from the True Global Ventures 4 Plus fund investment during the quarter.
Subsequent to quarter-end, SuRo received two distributions from CW Opportunity 2 LP totaling approximately $3 million in net proceeds. Green said the distributions were categorized in aggregate as about $902,000 of return of capital and a $2.1 million realized gain, adding that the gain “may be subject to change or adjustment” due to potential performance fees at the fund level.
As of March 31, Green said the company had approximately $46 million of liquid assets, including $43.3 million in cash and $2.7 million in unrestricted public securities. She added that SuRo also held approximately $15.9 million of public securities subject to lock-up or other sales restrictions, representing its remaining investment in CoreWeave via its Class A interest in CW Opportunity 2 LP.
Green also disclosed that after quarter-end, the purchaser of SuRo’s 6.5% convertible notes due 2029 converted $5 million of principal into 682,815 shares of common stock plus $19.56 in cash in lieu of fractional shares, leaving approximately $30 million in remaining principal balance.
Externalization proposal: Neostellar Advisors, rebrand and timing
A central theme of the call was SuRo’s proposed transition to an externally managed structure. Klein said the board approved a proposal to move from an internally managed BDC to an externally managed model through Neostellar Advisors LLC, “an advisor jointly owned by members of our current team and Magnetar.” The change remains subject to stockholder approval.
Klein emphasized that the proposal “is not a sale of the company” and said SuRo would remain a publicly traded BDC focused on high-growth, venture-backed private companies. He described Magnetar as bringing scale, with “approximately $18 billion in asset under management,” and said the partnership is expected to improve sourcing, diligence, portfolio support, and institutional infrastructure.
Green said the externalization is expected to “enhance investment sourcing and due diligence capabilities,” “preserve all realized gains on the company’s existing portfolio for the benefit of stockholders through the exclusion of pre-existing investments from any incentive fee calculations,” and “result in an annual expense savings.”
Klein also addressed shareholder alignment, stating that under the proposed advisory agreement, “pre-existing investments are not included in the incentive fee calculation,” which he characterized as a stockholder-friendly feature. Green said that in connection with the externalization, an affiliate of Magnetar is expected to make a $20 million investment in the company, and that SuRo’s current management team, including Klein and Green, will continue in their current roles.
Asked by Barrington Research’s Alexander Paris Jr. about timing and costs, Klein said the stockholder vote is scheduled for June 10 and that, “upon approval,” the company expects to enter into a management agreement with Neostellar and rebrand, with the change “effective on July 1st.”
About SURO Capital NASDAQ: SSSS
SURO Capital Corp NASDAQ: SSSS is a closed-end management investment company that operates as a business development company (BDC). Founded in 2013 and headquartered in Lewisville, Texas, SURO Capital provides capital solutions to lower middle-market companies across a range of industries. As a BDC, the company is governed by the Investment Company Act of 1940 and focuses on offering debt and equity financing to privately held businesses that may have limited access to traditional bank lending.
The firm's primary business activities include originating and managing a diversified portfolio of senior secured floating rate loans, unsecured loans, unitranche debt, and equity co-investments.
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