Q1 2024 SuRo Capital Corp Earnings Call

Melissa: Hello, and welcome to Sutter Capital's first quarter 2024 earnings call. My name is Melissa, and I will be your coordinator for today's event.

Hello, and welcome to throw Capital's first quarter 'twenty 'twenty four earnings call. My name is Melissa and I will be your coordinator for today's event. Please.

Melissa: Please note this conference is being recorded and for the duration of the call, your lines will be in a listen-only mode. However, you will have the opportunity to ask questions at the end of the presentation. This can be done by pressing star one on your telephone keypad to register your question.

Melissa: Please note. This conference is being recorded and for the duration up the call your lines will be in a listen only mode. However, you will have the opportunity to ask questions at the end of the presentation that can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, Please press star zero and you'll.

Melissa: If you require assistance at any point, please press star zero, and you will be connected to an operator. I'll now turn the call over to Adam Bates. Please go ahead.

Melissa: To be connected to an operator I'll now turn the call over to Adam Beatty. Please go ahead.

Adam Bates: Thank you very much for joining us on today's call. I'm joined today by the chairman and chief executive officer of Sutter Capital, Mark Klein, and chief financial officer, Allison Green. Please note that a slide presentation corresponding to today's prepared remarks by management is available on our website at www.surrocap.com under Investor Relations, Events, and Presentations. Today's call is being recorded and broadcast live on our website. Replay information is included in our press release issued today.

Adam Bates: Thank you very much for joining us on today's call.

Adam Bates: I am joined today by the Chairman and Chief Executive Officer of <unk> Capital, Mark Klein, and Chief Financial Officer, Alison Greene.

Adam Bates: Please note that a slide presentation corresponding to todays prepared remarks by management is available on our website at www Dot Cerro cap dot com under Investor relations events and presentations.

Adam Bates: Today's call is being recorded and broadcast live on our website Www Dot zero cap Dot Com replay information is included in our press release issued today.

Adam Bates: This call is a property of Sutter Rock Capital, and the unauthorized reproduction of this call in any form is strictly prohibited. I would also like to call your attention to customary disclosures in today's earnings press release regarding forward-looking information. Statements made in today's conference call and webcast may constitute forward-looking statements that relate to future events or future performance or financial conditions. These statements are not guarantees of our future performance or our future financial condition and involve a number of risks, estimates, and uncertainties, including the impact of any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy, which could cause actual results that differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements.

Adam Bates: This call is the property of <unk> capital and the unauthorized reproduction of this call in any form is strictly prohibited.

Adam Bates: Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to those described from time to time in the company's filings with the SEC. Management does not undertake to update such forward-looking statements unless required to do so by law.

Adam Bates: Also like to call your attention to customary disclosures in today's earnings press release regarding forward looking information.

Adam Bates: Statements made in today's conference call and webcast may constitute forward looking statements, which relate to future events or future performance or financial condition. These.

Adam Bates: These statements are not guarantees of our future performance or our future financial conditional results and involve a number of risks estimates and uncertainties, including the impact of any market volatility that may be detrimental to our business our portfolio companies, our industry and the global economy that could cause actual results to differ materially from.

Adam Bates: The plans intentions and expectations reflected in or suggested by the forward looking statements.

Adam Bates: Actual results may differ materially from those in the forward looking statements as a result of a number of factors, including but not limited to those described from time to time in the company's filings with the SEC.

Adam Bates: Management does not undertake to update such forward looking statements unless required to do so by law.

Adam Bates: To obtain copies of Sutter Rock Capital's latest SEC filings, please visit our website at www.sutterrockcap.com or the SEC's website at sec.gov. Now, I would like to turn the call over to Mark Klein. Thank you, Adam. Good afternoon, and thank you for joining us.

Adam Bates: Copies of <unk> Capital's latest SEC filings. Please visit our website at www Dot <unk> dot com or the SEC website at SEC Gov, now I would like to turn the call over to Mark quiet.

Mark David Klein: We would like to share the results of Sutter Rock Capital's first quarter 2024. As most of you know, for over 13 years, Sero Capital has provided public equity investors access to late-stage venture capital backed private companies such as Facebook, Twitter, Snap, Lyft, Dropbox, Spotify, Palantir, and Coursera, just to name a few.

Mark David Klein: Thank you Adam good afternoon, and thank you for joining us.

Mark David Klein: To share the results of Cerro Capital's first quarter 2024.

Mark David Klein: As most of you know for over 13 years, Cerro capital has provided public equity investors access to late stage venture capital backed private companies such as Facebook Twitter snap lift Dropbox, Spotify Powell inter and of course, Sarah just to name a few.

Mark David Klein: We're excited to see the renewed and accelerating public investor interest in later stage venture capital as an asset class. We believe our current portfolio, including recent investments, year-to-date, will continue to drive shareholder value. We are pleased to share that we have deployed more capital in the last four months than in any period in the last two years. In addition to our previously announced $10 million investment in LiquidDev, we are excited to share that subsequent to Quarter End, we invested $10 million in Canva, a leading productivity and design software company, and invested $15 million in CoreWeave through an SPB named CW Opportunity. CoreWeave is a cloud infrastructure provider for artificial intelligence and machine learning use cases. See 2020. https://www.youtube.com or the link in the description.

Mark David Klein: We're excited to see the renewed and accelerating public investor interest in later stage venture capital as an asset class. We believe our current portfolio, including recent investments year to date will continue to drive shareholder value.

Mark David Klein: We are pleased to share that we have deployed more tests more capital in the last four months than any period in the last two years. In addition to our previously announced $10 million investment in <unk>.

Mark David Klein: We are excited to share that subsequent to quarter end, we invested $10 million in Canada.

Mark David Klein: <unk> productivity and design software company and invested $15 million in core or were you doing the SPP named CW opportunity.

Mark David Klein: <unk> is a cloud infrastructure provider for artificial intelligence and machine learning use cases.

Mark David Klein: <unk> is our single largest investment since 2020.

Mark David Klein: I will go into more detail on each company later in the call. As many of you know, from late 2020 through 2021, we liquidated a large portion of our portfolio and paid out approximately $9 per share in dividends. We consistently stated we would be patient in redeploying our capital in the belief that we would be able to deliver shareholders access to compelling opportunities. We began redeploying in the middle of last year with investments in Service Titan and Fork Heights and continued into this year with Liquid Death, Canva, and CoreWeave.

Mark David Klein: I will go into more detail on each company later in the call.

Mark David Klein: As many of you know from late 2020 through 2021, we liquidated a large portion of our portfolio and paid out approximately $9 per share in dividends. We consistently stated we would be patient and redeploying our capital and I believe that we would be able to deliver shareholders access to compare.

Mark David Klein: <unk> opportunities.

Mark David Klein: We began redeploying in the middle of last year with investments in service tightened and tour guides and continued into this year with liquid debt, Kansas and core we've.

Mark David Klein: Over the last four months, we deployed half of our cash that was available at year-end, and we are actively engaged in potential additional investment. Given the strong performance in the public equity markets, coupled with the encouraging performance of recently minted IPOs such as Reddit, Rubrik, Ibotta, and Astera Labs, we believe these are indicators of renewed investor enthusiasm for high-growth technology companies. Turning to our first quarter results, we ended the quarter with a net asset value of $181.7 million, or $7.17 per share. This NAV compares to a net asset value of $7.99 per share at year end and $7.59 per share at the end of Q1 2023. Please turn to slide four.

Mark David Klein: Over the last four months, we deployed half of our cash that was available at year end and we are actively engaged in potential additional investments.

Mark David Klein: Given the strong performance in the public equity markets, coupled with the encouraging performance recently minted ipos such as rent it Rick.

Mark David Klein: Sterile as we believe these are indicators of a renewed investor enthusiasm for high growth technology companies.

Mark David Klein: Turning to our first quarter results, we ended the quarter with a net asset value of $181 $7 million or $7.17 per share.

Mark David Klein: That compares to a net asset value of $7.99 a share a year.

Mark David Klein: And $7 59 per share at the end of Q1 2023.

Mark David Klein: Please turn to slide four turning to our top five positions I first want to highlight our cash position as of quarter end, our cash and short term U S treasuries available for investment or approximately $84 million.

Mark David Klein: Turning to our top five positions, I first want to highlight our... As of quarter end, our cash and short-term U.S. Treasuries available for investment were approximately $80.4 million, representing 31% of our gross assets. Sutter Rock Capital's top five positions as of March 31st were Lernio, Service Titan, Blink Health, Locus Robotics, and Stormwind. These positions accounted for approximately 51% of the investment portfolio at fair value. Additionally, as of March 31st, our top ten positions accounted for approximately 78% of the investment portfolio.

Mark David Klein: Representing 31% of our gross assets. So capital's top five positions as of March 31st We're learning service tightened link held Wocas robotics and Starwood. These positions accounted for approximately 51% of the investment portfolio at fair value. Additionally, as of March 31, our top 10.

Mark David Klein: <unk> accounted for approximately 78% of the investment portfolio.

Mark David Klein: Subsequent to Quarter End, we made a $10 million investment in Canva on similar terms as the reported company tender. However, according to Bloomberg, the valuation of that tender came at a significant discount to Canva's last primary financing. Canva is an online productivity design software and collaboration platform with a mission to empower everyone in the world to design. Featuring a simple drag-and-drop user interface, the company provides a cloud-first browser tool to create presentations, social media posts, videos, and more. 2023 was a momentous year for Canva. The information reported in It finished the year with $2 billion in annualized revenue.

Mark David Klein: Subsequent to quarter end, we made a 10 million dollar investment in Canada.

Mark David Klein: More terms as the reported company tender according to Bloomberg the valuations that tender came at a significant discount.

Mark David Klein: Discount to Kansas last primary financing.

Mark David Klein: Additionally, according to its annual report, Canva surpassed 170 million users, monthly users, in 190 different countries. Capital also surpassed 20 billion designs created, and over 6 billion of these designs created in 2023 alone, equivalent to 1 million designs per hour. Over the course of the year, Canva significantly scaled its enterprise segment. At the end of 2023, more than 90% of Fortune 500 companies were using Canva, and 135,000 teams and companies with more than 1000 employees were designing on the platform.

Mark David Klein: Canada is an online productivity design software in collaboration platform with a mission to empower everyone in the world to design, featuring a simple drag and drop user interface. The company provides a cloud first browser tool to create presentations, social media posts and videos and more.

Mark David Klein: According to Canva's annual report, these companies include Starbucks, FedEx, Salesforce, Johnson & Johnson, PayPal, and many more. Lastly, Canva greatly bolstered its AI-powered product offerings in 2023. In October, Canva launched Magic Studio, a suite of AI design tools, including text to image and text to video generation, file reformatting, instant animation, and more.

Mark David Klein: According to Canva's annual report, these AI products have already been used more than 4 billion times. Canva has emerged as a leader in AI-facilitated content creation, having been selected as Apple's number two generative AI app for 2024. According to PitchBook, Canva has raised over $580 million in equity financing from investors including Bessemer Venture Partners, General Catalyst, Iconic, and more. We believe Canva is uniquely positioned to dominate the amateur and prosumer design market as it makes graphic design more accessible.

Mark David Klein: 2023 was a momentous year for Cabo the information reported camera finished the year with $2 billion in annualized revenue. Additionally, according to its annual report canvas surpassed 170 million users monthly users and 190 different countries.

Mark David Klein: Also surpassed 20 billions of designs created and over $6 billion of these designs created in 2023 alone equivalent to 1 million designs per hour.

Mark David Klein: Over the course of the year, Kansas significantly scaled at the enterprise segment.

Mark David Klein: At the end of 2023 more than 90% with a fortune 500 companies were using camber and 135000 teams and companies with more than 1000 employees, who are designing on the platform.

Mark David Klein: According to Kansas Annual report these companies, including Starbucks, Fedex, Salesforce, Johnson, and Johnson, Paypal and many more.

Mark David Klein: Lastly, Canada greatly.

Mark David Klein: AI powered product offerings in 2023.

Mark David Klein: October October camera launch Magic studio, a suite of AI design tools, including tags to image and text to video generation following formatted instant animation and more according to cameras annual report does air products have already been used more than 4 billion times, Kevin has emerged as a leader.

Mark David Klein: <unk> and AI facilitated content creation has been good.

Mark David Klein: Select it as apples number two generally generates a eye out for 2023.

Mark David Klein: According to pinch book, Ken, but Canada has raised over $580 million in equity financing program investors, including Bessemer venture partners General catalyst iconic and more we believe can be is uniquely positioned to dominate the amateur and pro Sumer design Margaret as it makes graphic.

Speaker Change: And before.

Mark David Klein: Yes.

Mark David Klein: Additionally, subsequent to Quarters N, we made a $15 million investment in CW Opportunity 2, an SPV that will invest in CoreWeave's preferred shares. CoreWeave is a specialized cloud provider delivering access to a suite of NVIDIA GPUs coupled with its fast and flexible cloud computing infrastructure. CoreWeave is a critical foundation for AI and machine learning use cases from the initial stages of training a model to ultimately producing its output for end users. In other words, during the training phase, a model takes in large data sets to develop the ability to generate responses in.

Mark David Klein: Additionally, subsequent subsequent to quarter's end, we made a $15 million investment in CDW opportunity to an SPV that well that's a car we issued preferred shares.

Mark David Klein: <unk> is a specialized cloud provider delivering access to a suite of Nvidia Gpus, coupled with its fast and flexible cloud computing infrastructure.

Mark David Klein: Halloween is a critical foundation for AI and machine learning use cases from the initial stages of training a model to ultimately producing our modeled output and users.

Mark David Klein: During the training phase of model takes in large data sets to develop the ability to generate responses and insight in other words during the training phase of model learns how to address its end users' needs to serve the training phase all we've offers distributing clusters, where connected computers using nvidia is groundbreaking.

Mark David Klein: To serve the training phase, CoreWeave offers distributed clusters or connected computers using NVIDIA's groundbreaking quantum InfiniBand network solution. During the inference phase, a model creates predictions and insights based on a user's live input. The inference phase occurs when, for example, a large language model or LLM writes a response based on a user's input.

Mark David Klein: Awesome.

Mark David Klein: And network solutions.

Mark David Klein: And first phase our model creates predictions and insights based on the usual slides input.

Mark David Klein: Inference phase occurs when for example, a large language model, where LLM writes a response based on user input.

Mark David Klein: With spin-up times as short as five seconds, CoreWeave offers one of the most powerful inference solutions using NVIDIA GPUs. In fact, according to a company blog post, its inference service performs eight to ten times faster than a major generalized cloud provider. Over the last few months, Corweave has cemented itself as a leader in AI infrastructure. In March, NVIDIA unveiled its Blackwell GPU architecture, which according to a company press release, will enable organizations to build and run generative AI at up to 25 times less cost and energy consumption than its predecessor.

Mark David Klein: With the spinoff times as short as five seconds.

Mark David Klein: <unk> offers one of the most powerful improved solutions using Nvidia Gpus in fact, according to a company blog post <unk> infrared service performance eight to 10 times faster than our major generalized cloud provider.

Mark David Klein: Over the last few months Corwin has cemented itself as a leader in AI infrastructure and March invest NV.

Mark David Klein: Unveiled its Blackwell GPU architecture, which according to a company press release will enable organizations to build and run generally AI is up to 25 times less costs and energy consumption than invidious predecessor.

Mark David Klein: As a preferred cloud service provider of NVIDIA, and as a company in which NVIDIA has made an investment, CoreWeave was named as one of the first companies expected to offer Blackwell-powered instances to the public. With relationships with such companies as NVIDIA, Mistral AI, and Datadog, CoreWeave is a major building block for advancements in generative AI. NVIDIA has seen tremendous growth driven by generative AI development and adoption.

Mark David Klein: As a preferred cloud service provider a bit of Nvidia and as a company in which Nvidia has made an investment Halloween was named as one of the first companies expect top.

Mark David Klein: <unk> to offer black well powered.

Mark David Klein: As to the public with relationships with such companies as Michelle.

Mark David Klein: Initial AI and data.

Mark David Klein: <unk> is a major building blocks.

Mark David Klein: Managements in general of AI.

Mark David Klein: And video has seen monumental growth driven by generative AI development and adoption. According towards fourth quarter of fiscal 2024 results. Its data center platform reached a record of approximately $18 4 billion in Q4 revenue.

Mark David Klein: According to its fourth quarter fiscal 2024 results, its data center platform reached a record of approximately $18.4 billion in Q4 revenue, more than 400% year over year. In its prepared remarks, management described the tipping point of computing powered by data centers, stating that the data center infrastructure is rapidly transitioning from general purpose to accelerated computing. By offering distributed access to NVIDIA's GPUs, data centers are becoming a foundation element of generative AI

Mark David Klein: Over 400% year over year in his prepared remarks management described the tipping point of computing powered by data centers, stating that the data center infrastructure is rapidly transitioning from general purpose to accelerated computing by offering <unk>.

Mark David Klein: Distributed access to video Gpus data centers are becoming a foundation element of generative AI.

Mark David Klein: As an infrastructure provider, CoreWeave is strongly positioned to continue to benefit from NVIDIA's acceleration and broader acceleration in AI. According to PitchBook, CoreWeave has raised over $3.8 billion in debt and equity financing from investors such as Q2, Fidelity, Magnetar, and others. With its best-in-class cloud infrastructure, we believe Corweave will continue its exponential growth and capitalize on accelerated AI adoption. Please turn to slide 7.

Mark David Klein: As an infrastructure provider <unk> is strongly positioned to continue to benefit from Nvidia is acceleration and broader acceleration in AI.

Mark David Klein: According to Pittsburgh or wave has raised over $3 8 billion in debt.

Mark David Klein: And equity financing from investors such as co two to tell fidelity magnetar and others with its best in class cloud infrastructure. We believe core we will continue its exponential growth and capitalize on accelerated.

Mark David Klein: AI adoption.

Mark David Klein: Please turn to slide seven.

Mark David Klein: One additional portfolio company we'd like to highlight is our investment in Alt-C Sponsored LLC, a SPAC sponsored by Sam Altman. Yesterday, Alt-C Acquisition Corp.'s shareholders approved the business combination with Oak Globe, a fast-vision, clean power company backed by Sam Altman. While we are always happy when our SPAC-sponsored investments complete a business combination, this one is particularly exciting for a few reasons. Oklahoma is on the cutting edge of nuclear fuel recycling, which has many uses, including the potential to add clean power to AI-related data centers.

Mark David Klein: One additional portfolio company, we'd like to highlight is our investment in all see sponsored LLC Spag sponsored by Sam Hoffman yesterday, all see acquisition Corp shareholders approve the business combination with <unk>, a fast vision clean power company backed by Sam all while we will always.

Mark David Klein: Happy when our spec sponsored investments.

Mark David Klein: Investments completed a business combination. This one is particularly exciting for a few reasons.

Mark David Klein: He is on the cutting edge of new nuclear fuel recycling, which has many uses including the potential day of clean power to AI related data centers with Sam Walton as hopeful as chairman the company has been able to create significant partnerships to further its clean tech product suite, most recently through a nonbinding LOI.

Mark David Klein: With Sam Altman as Oklahoma's chairman, the company has been able to create significant partnerships to further its clean tech product suite, most recently through a non-binding LOI with Diamondback Energy, the largest independent energy producer in the Permian Basin. Our investment thesis around AI has been deliberate, first focusing specifically on the infrastructure of AI. Oklo's product has many use cases, but its ability to power the hyper-growth of AI gives us another entry point into AI infrastructure.

Mark David Klein: With Diamondback energy the largest independent energy producer in the Permian Basin.

Mark David Klein: Yeah.

Mark David Klein: Our investment thesis around AI has been delivered first focusing specifically on the infrastructure of AI.

Mark David Klein: This product has many use cases, however, its ability to power the hyper growth of AI gives us another entry point into AI infrastructure, our new investment in core plus the business combination between I'll say, Oh, well now it gives us significant exposure to the picks and shovels of the AI universe building as part of our portfolio.

Mark David Klein: Our new investment in CoreWeave plus the business combination between OC and Oklo now gives us significant exposure to the picks and shovels of the AI universe, access to the AI infrastructure landscape, an industry with limited opportunities for public investors to participate in today. Transitioning to our public investment. As previously stated, it is our objective to sell our public positions when lock-up restrictions expire and there is relative stability in a given public position's trading.

Mark David Klein: It was deliberate and required a patient deployment of capital, but we are now seeing the results of that strategy play out we cannot be more excited to have created a portfolio that allows zero capital investors access to the AI infrastructure landscape and industry with limited opportunities for public investors to participate in to date.

Mark David Klein: Transitioning to a public investments as previously stated it is it is our objective to sell our public positions when lockup restrictions expire and there is relative stability in a given public positions trading in line with this approach we continue to monetize several of our public unrestricted.

Mark David Klein: In line with this approach, we continue to monetize several of our public unrestricted positions over the course of the quarter. During the first quarter, we fully exited our remaining position in Nextdoor and reduced our position in public square warrants.

Mark David Klein: <unk> over the course of the quarter during the first quarter, we fully exited our remaining position in next door and reduce reduce our position in public square warms.

Mark David Klein: I would also like to further reiterate Sutter Rock Capital's commitment to initiatives that enhance shareholder value. Given the discount our stock is traded at compared to net asset value per share, we believe our recent modified Dutch auction tender offer was an efficient and accretive deployment of capital. Allison will discuss the results of the tender offer in her prepared remarks. Given these recent investments, coupled with our strong portfolio and the positive performances of high-profile technology IPOs, we believe our portfolio is well-positioned to drive shareholder return. Thank you for your attention. And with that, I would like to hand it over to Allison Green, our Chief Financial Officer. Thank you, Mark.

Mark David Klein: I would also like to further reiterate zero capital's commitment to initiatives that enhance shareholder's value given the discount our stock has traded at compared to a net asset value per share. We believe our recent modified Dutch auction tender offer was inefficient and accretive deployment of capital.

Allison Green: Also we will discuss the results of the tender offer in her prepared remarks.

Allison Green: Given these recent investments coupled with our strong portfolio and the positive performances of high profile technology Ipos, We believe our portfolio is well positioned to drive shareholder return.

Allison Green: Thank you for your attention and with that I would apply to hand, it over to Alison Greene, our Chief Financial Officer.

Allison Green: I would like to follow up Mark's update with a more detailed review of our first quarter investment activity and financial results of March 31st, including investment activity subsequent to quarter end, results of the modified Dutch auction tender offer announced during Q1 and executed subsequent to quarter end, and our current liquidity. First, I will review our investment activities. During the first quarter, we made a $10 million investment in Liquid Death Series F1 Preferred Shares.

Allison Green: Thank you Mark.

Allison Green: With a more detailed review of our first quarter I'm not back to the financial results as of March 31st, including it doesn't actually have a nice quarter and there's also the modified Dutch auction tender offer in Australia, you won and executed subsequent to quarter end and our current liquidity.

Speaker Change: Alright, I will review our investment activity.

Allison Green: During the first quarter, we made a $10 million investment in language that series F. One preferred shares over.

Allison Green: Over the course of the first quarter, we sold our remaining public common shares in NextDoor and continued to monetize our warrants in Public Square. Notably, we sold 100,000 warrants in Public Square for approximately $103,000 in net proceeds, resulting in a realized gain of approximately $60,000. As Mark mentioned, subsequent to Quarter End through today, we completed a $10 million investment in Canvas Common Shares and a $15 million investment in the Class A interest of CW Opportunity 2LT, an SPV that will invest in CoreWeave's preferred shares. Please turn to slide 8.

Allison Green: Over the course of the first quarter, we sold our remaining public common shares in next door and continue to monetize our Warrington public square yes.

Allison Green: We sold 100000 warrants a public square for approximately $103000 in net proceeds resulting in a realized gain of approximately $60000.

Allison Green: As Mark mentioned subsequent to quarter end and through today, we completed a $10 million investment in canvas common shares and a $15 million investment in a class a interest EW opportunities U L E and F. T V that want that inquiries preferred shares.

Allison Green: Turning to slide eight.

Allison Green: Segmented by six general investment themes, the top allocation of our investment portfolio at quarter end was to education technology, representing approximately 31% of the investment portfolio at fair value. The Cloud, Big Data, and Marketplaces categories both accounted for approximately 19% of our portfolio. Approximately 17% of our portfolio was invested in financial technology and services companies. The Social, Mobile, and Consumer category accounted for approximately 13% of the fair value of our portfolio. And Sustainability accounted for less than 1% of the fair value of our portfolio as of March 31st. Please turn to slide 9.

Allison Green: Segmented by six general investment themes, the top allocation of our investment portfolio at quarter end with the education technology, representing approximately 31% in the investment portfolio at fair value.

Allison Green: Big data and marketplaces category.

Allison Green: Good for approximately 19% of our portfolio.

Allison Green: 17% of our portfolio was invested in financial technology and services company.

Allison Green: The social and mobile and consumer category accounted for approximately 13% of the fair value of our portfolio and sustainability accounted for less than 1% of the fair value of our portfolio as of March 31st Please.

Allison Green: Please turn to slide nine.

Allison Green: We ended the first quarter of 2024 with an NAV per share of $7.17, which is consistent with our financial reporting. The decrease in NAB per share from $7.99 at 2023 year-end to $7.17 as of March 31 was primarily driven by a $0.73 per share decrease, resulting from unrealized depreciation of our portfolio investments during the quarter, in addition to a $0.13 per share decrease due to net investment losses, and a $0.02 per share decrease due to net real estate losses on our investments. The decrease in NAV per share was partially offset by a $0.06 per share increase due to stock-based compensation during the quarter.

Allison Green: We ended the first quarter of 2024 with a NAV per share of $7 17.

Allison Green: Which is consistent with our financial reporting.

Allison Green: The decrease in NAV per share from $7.99.

Allison Green: The 23 year end.

Allison Green: 17 cents as of March 31 was primarily driven by a 73 cents per share a decrease but only from unrealized depreciation of our portfolio investments during the quarter.

Allison Green: This is about 13 cents per share decrease due to that and Matt and the heart.

Allison Green: And his two cents per share decrease is not realized losses on our MSR.

Allison Green: Decrease in that 80 per share was partially offset by <unk> 10 per share increase due to stock based compensation during the quarter.

Allison Green: As Mark mentioned earlier, Sutter Rock Capital is committed to initiatives that enhance shareholder value. Accordingly, on February 14th, our Board of Directors approved a modified Dutch auction tender offer, which commences on February 20th, to purchase up to 2 million shares of our common stock at a price per share not less than $4 per share and not greater than $5 per share in 10-cent increments using available cash. The tender offer expired on April 1st.

Allison Green: As Mark mentioned earlier.

Allison Green: Committed to initiatives and enhance shareholder value.

Allison Green: Pursuant to the terms of the tender offer and following its expiration, we repurchased 2 million shares at a price of $4.70 per share, representing 7.9% of outstanding shares. The per share purchase price of properly tendered shares represented 65.6% and 58.8% of net asset value per share as of March 31, 2024 and December 31, 2023, respectively. We used available cash to fund the purchase of shares of common stock in the tender offer and to pay for all related fees and expenses.

Allison Green: On February 14th our board of Directors approved a modified Dutch auction tender offer which commenced on February 28 to purchase up to 2 million shares of our common stock at a price per share not less than $4 per share and not greater than $5 per share and tencent increments using available cash.

Allison Green: Because the tender offer expires at the quintuple quarter end, it is not reflected in our financial statements for the three months ended March 31st and will be reflected in next quarter's financial statements. I would also like to note that the dollar value of shares that may yet be purchased by Sutter Rock Capital under the Share of Purchase Program is approximately $20.7 million. The Share of Purchase Program is authorized through October 31, 2024.

Allison Green: Tender offer expired on April 1st.

Allison Green: Pursuant to the terms of the tender offer and following it exploration, we repurchased 2 million shares enterprise support <unk> 70 per share representing 10, 9% and a chair the first share repurchase price properly tendered shares represented 65, 6% and 58, 8%.

Allison Green: <unk> per share as of March 31, 2024, and December 31st 2023, respectively. We use available cash to fund the purchase of shares of common stock and a tender offer paypal related fees and expenses.

Allison Green: Because the tender offer expires subsequent to quarter end and is not reflected in our financial statements for the three months ended March 31st and will be reflected in next quarters financial.

Allison Green: I'd also like to note that the dollar and I understand that may yet be purchased by throw capital under the share repurchase program and approximately $27 million. The share repurchase program was authorized through October 31 2024.

Allison Green: Finally, I would like to take a moment to review Sorrell Capital's liquidity position as of March 31st. We ended the quarter with approximately $84.6 million of liquid assets, including $50.8 million in cash, $29.6 million in short-term U.S. Treasuries, and approximately $4.1 million in unrestricted public security. At March 31st, 2024, there were 25,353,284 shares of the company's common stock outstanding. Presently, following the execution of the tender offer subsequent to quarter ends, there are 23,353,284 shares of the company's common stock outstanding.

Allison Green: Finally, I would like to take a moment to review throw capital liquidity position as of March 31st.

Allison Green: We ended the quarter with approximately $84 $6 million of liquid.

Allison Green: Including $58 million in cash $29 $6 million in short term U S treasury and approximately $45 million in unrestricted capital Securities.

Allison Green: At March 31, 2024 hour 25.353 million 284 shares of the company's common stock outstanding permanently bind the execution of the tender offers that quarter end.

Allison Green: $23 million 353284 shares of the company's common stock outstanding.

Allison Green: That concludes my comments. We would like to thank you for your interest in supporting Sutter Rock Capital. Now I will turn the call over to the operator to start the Q&A. Operator?

Speaker Change: With my comments I'd like to thank you for your interest and support of throw capital now I will turn the call over to the operator to start the Q&A.

Allison Green: Sure.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad to register your question. To withdraw your question for any reason, you may press start again. You will be advised when. And as we have no, through I'd like to turn it back over to Mark Klein for any questions. Thank you all very much for joining us this afternoon. We are truly excited about how we have positioned the portfolio and our ongoing access to really great opportunities.

Speaker Change: Thank you as a reminder, if you would like to ask a question. Please press star one on your telephone keypad to register your question to withdraw your question for any reason you May Press Star two if you will be advised when to ask your question.

Operator: And as we have no questions coming through I'd like to turn it back over to Mark Klein for any closing remarks.

Operator: Thank you all very much for joining us. This afternoon. We are truly excited of how we have positioned the portfolio and our ongoing access to.

Mark David Klein: Really great opportunities. Thank you again very much.

Operator: Okay.

Mark David Klein: Thank you again very much. Thank you very much. That concludes today's conference. [inaudible] Where are you? Unknown Attendee, Mark Klein, Unknown Attendee, Allison Green, Kevin Fultz, William Lee, Adam Bates, Jackson Stone, Sutter Rock Capital, [inaudible]

Speaker Change: Thank you very much that concludes today's conference you may now disconnect.

Mark David Klein: Okay.

Mark David Klein: Yes.

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