Based on the provided financial report articles, the title of the article is: "Consolidated Balance Sheets as of December 31, 2024 and 2023, and the Years Then Ended, and Related Notes

Overview

SuRo Capital Corp. is an internally managed, non-diversified closed-end management investment company that has elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. The company’s investment objective is to maximize its portfolio’s total return, primarily by seeking capital gains on its equity and equity-related investments, and to a lesser extent, income from debt investments.

SuRo Capital invests principally in the equity securities of rapidly growing venture capital-backed emerging companies across several key industry themes, including Software-as-a-Service, Artificial Intelligence, Consumer Goods & Services, Education Technology, Logistics & Supply Chain, Financial Technology, and Sports. The company acquires its investments through direct investments, secondary marketplaces, negotiations with selling stockholders, and investments in SPVs and investment funds.

Financial Performance

For the year ended December 31, 2024, SuRo Capital reported a net investment loss of $13.95 million, compared to a net investment loss of $13.44 million in 2023. The increase in net investment loss was due to a decrease in total investment income and operating expenses during 2024.

The company recognized a net realized loss on investments of $5.02 million in 2024, compared to a net realized loss of $11.95 million in 2023. The decrease in net realized losses was primarily due to fewer portfolio company exits and sales during 2024.

SuRo Capital had a net change in unrealized appreciation/depreciation of its investment portfolio of $(18.97) million in 2024, compared to $30.45 million in 2023. The change was driven by decreases in the fair value of several portfolio companies, including OneValley, SPBRX, Whoop, and Learneo.

As of December 31, 2024, the fair value of SuRo Capital’s investment portfolio was $209.38 million, up from $184.08 million at the end of 2023. The company funded $74.50 million in new and follow-on investments during 2024, while realizing $26.11 million from exits and sales.

Strengths and Weaknesses

Key strengths of SuRo Capital include:

• Diversified portfolio across multiple high-growth industry themes
• Experienced management team with expertise in venture capital and private equity
• Internally managed structure, which aligns management incentives with shareholders
• Access to deal flow through relationships with venture capital funds and other institutional investors

Weaknesses include:

• Dependence on future capital raises to fund operations, as the portfolio is primarily equity-focused and does not generate significant current income
• Exposure to the inherent risks of investing in early-stage, venture-backed companies
• Potential volatility in the fair value of the investment portfolio due to the illiquid nature of the holdings

Outlook

Looking ahead, SuRo Capital’s performance will continue to be driven by the growth and development of its portfolio companies, as well as its ability to identify and execute on new investment opportunities. The company’s internally managed structure and diversified investment approach position it well to navigate the challenges facing the venture capital and private equity markets.

However, the company’s reliance on future capital raises and the inherent risks of its investment strategy could present headwinds. Investors should closely monitor SuRo Capital’s portfolio performance, liquidity position, and ability to raise additional capital to fund its operations and investment activities.