Q4 2024 SuRo Capital Corp Earnings Call

Yeah.

Melissa: Hello and welcome to Sutter Capital's fourth quarter and fiscal year 2024 earnings call. My name is Melissa and I will be your coordinator for today's event. Please note this conference is being recorded and for the duration of the call, your lines will be on listen only.

Melissa: Hello, and welcome to Starwood Capital's fourth quarter and fiscal year 2024 earnings call. My name is Melissa and I will be your coordinator for today's event. Please note. This conference is being recorded and for the duration of the call. Your lines will be on listen only however, you will have the opportunity.

Melissa: 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 keypad to register your question at any time. If you require assistance, please press star zero to be connected to an operator.

Melissa: To ask questions at the end of the presentation that can be done by pressing star one on your keypad to register your question at any time.

Speaker Change: If you require assistance. Please press star zero to be connected to an operator I'll now turn the call over to Jackson Stone. Please go ahead.

Jackson Stone: I'll now turn the call over to Jackson Stone. Please go ahead. Thank you for joining us on today's call.

Jackson Stone: Thank you for joining us on today's call.

Jackson Stone: I'm joined today by the Chairman and Chief Executive Officer of Surow 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 www.surrocap.com. Replay information is included in our press release issued today.

Speaker Change: I'm joined today by the Chairman and Chief Executive Officer of Cerro Capital, Mark Klein, and Chief Financial Officer, Alison Greene.

Speaker Change: Note that a slide presentation corresponding to today to today's prepared remarks by management is available on our website at www Dot Cerro cap dot com under Investor relations events and presentations.

This call is being recorded and broadcast live on our website www Dot zero cap Dot com.

Speaker Change: Information is included in our press release issued today.

Jackson Stone: This call is the property of Sutter Rock Capital and the unauthorized reproduction of this call in any form is strictly prohibited.

Speaker Change: This call is the property of Cerro capital and the unauthorized reproduction of this call in any form is strictly prohibited.

Jackson Stone: 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 which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance or future financial condition or 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 the plans, intentions, and expectations reflected in or suggested by the forward-looking statement.

Speaker Change: I would also like to call your attention to customary disclosures in today's earnings press release regarding forward looking information.

Speaker Change: Payments made in todays conference call and webcast may constitute forward looking statements, which relate to future events or our future performance or financial condition.

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

Speaker Change: Intentions and expectations reflected in or suggested by the forward looking statements.

Speaker Change: 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.

Jackson Stone: from those in the forward-looking statements, Management does not undertake to update such forward-looking statements unless required to do so by law.

Rent does not undertake to update such forward looking statements unless required to do so by law.

Jackson Stone: To obtain copies of Surro Capital's latest SEC filings, please visit our website at www.surrocap.com or the SEC's website at sec.gov.

Speaker Change: To obtain copies of Cerro Capital's latest SEC filings. Please visit our website at www Dot Cerro cap dot com or the Sec's website, I'd actually see dot Gov.

Mark Klein: Now I would like to turn the call over to Mark Klein. Thank you, Jackson. Good afternoon.

Mark Klein: Now I would like to turn the call over to Mark Klein.

Mark Klein: Thank you Jackson good afternoon, I would like to thank everyone for joining the call and thank our investors for their continued support.

Mark Klein: I would like to thank everyone for joining the call and thank our investors for their continued support. We are excited to share the results of Sutter Rock Capital's fourth quarter and fiscal year 2024. We're especially excited to welcome the many new participants.

Speaker Change: We are excited to share the results of serve capital's fourth quarter and fiscal year 2024.

Mark Klein: We're especially excited to welcome the many new participants on the call.

Mark Klein: With that in mind, we'll start with a quick history of CERO before diving into why we believe our portfolio is at a major inflection point. Based on the thesis that companies would stay private longer, we started this firm 14 years ago with the objective of providing access to market-leading private companies before they go public. That thesis has played out. When SIR was founded, there were fewer than 100 unicorns. Today, there are roughly 1,500. 50. Thank you. and a handful of centichorns. Over this time period, we have owned a number of marquee technology companies, including Facebook, Twitter, Snap, Spotify, Lyft, Dropbox, Palantir, and Coursera, just to name a few.

Mark Klein: That in mind, we will start with a quick history of Cerro before diving into why we believe our portfolio is that a major inflection point.

Mark Klein: Based on the thesis that companies would stay private longer we started this firm 14 years ago with the objective of providing access to market, leading private companies before they go public.

Mark Klein: That thesis has played out.

Mark Klein: When <unk> was founded there were fewer than 100 unicorns today. There are roughly 1500, unicorns 50, Deca corns and a handful of set the courts.

Mark Klein: Over this time period, we have on the number of marquee technology companies, including Facebook Twitter snap Spotify Lyft Dropbox talent here and of course of course.

Mark Klein: Sara just to name a few.

Mark Klein: We've enjoyed many robust market cycles, including mid-2020 to early 2022, when we monetized over $250 million of our portfolio assets. and declared him paid a total of approximately $9.00. Per Share and Distribution. As with all BDCs, we are required to distribute functionally all of our net realized gains. consistent with our past practice. We will be transparent and communicative about our dividend strategy.

Mark Klein: We've enjoyed many robust market cycles, including mid 2020 to early 'twenty two when we monetize over $250 million of our portfolio assets and declared and paid a total of approximately $9 per share in distributions.

Mark Klein: As with all Bdcs, we are required to distribute functionally all of our net realized gains.

Mark Klein: Consistent with our past practices, we will be transparent and communicative about our dividend strategy.

Mark Klein: Today, we believe we are looking at another one of those highly compelling moments in the market. The next wave of anticipated IPOs in our portfolio include CoreWeave, Canva, Whoop, Liquid Death, Lime, Bass Data, and at some point in time, OpenAI. This is as large a pipeline of pre-IPO businesses as we can recall in the fund's history. We believe the IPO window is reopening and this is an incredibly exciting time for our portfolio as we approach potential monetization. We are already seeing the exciting IPO activity build in our portfolio.

Mark Klein: Today, we believe we are looking at another one of those highly compelling moments in the market.

Mark Klein: The next wave of anticipated Ipos in our portfolio include core we've camber woop liquid debt lime vast data and at some point in time open AI.

Mark Klein: This is a this is as large of a pipeline of pre IPO businesses as we can recall in the fund's history.

Mark Klein: We believe the IPO window is reopening and this is an incredibly exciting time for our portfolio as we approach potential monetization.

Mark Klein: We are already seeing the exciting IPO activity built in our portfolio.

Mark Klein: On March 3rd, Coral Reef filed its S-1 ahead of what has been widely reported as one of the most highly anticipated IPOs of the year. According to a Bloomberg report, Coral Reef's IPO is expected to target a valuation greater than $35 billion and is seeking to raise approximately $4 billion. indicates the company generated $1.9 billion in 2024 revenue, over eight times greater than in 2023. According to a report from The Information, Corrweave expects that tremendous growth to continue, forecasting $8 billion in 2025 revenues. Subsequent to Corwi's IPO filing, the company announced that it signed a significant contract with OpenAI.

Mark Klein: On March 3rd quarter, we've filed its S. One ahead of what has been widely reported as one of the most highly anticipated ipos of the year.

Mark Klein: According to a Bloomberg report core weeds IPO is expected to targeted evaluation greater than $35 billion.

Mark Klein: And is seeking to raise approximately $4 billion.

Mark Klein: Four weeks perspectives indicates the company generated $1 $9 billion in 2020 for revenue over eight times greater than in 2023.

Mark Klein: According to a report from the information core we'd expect that tremendous growth to continue forecasting $8 billion in 2025 revenue.

Mark Klein: Subsequent to quarter always IPO filing the company announced that it signed a significant contract with open AI.

Mark Klein: According to a company press release, CoreWeave signed a five-year contract with OpenAI worth up to $11.9 billion, a deal that would also give OpenAI a $350 million equity stake in CoreWeave. Additionally, the company announced it reached an agreement to acquire Weights & Biases, a leading AI developer platform. The acquisition extends Corwin's cloud platform by enabling an end-to-end experience for customers, enhancing functionality for the world's leading AI labs and enterprises to build, tune, and deploy AI applications. According to a report from The Information, Coral Weave is acquiring weights and biases at a $1.7 billion valuation. As previously announced, during the fourth quarter we made an additional $5 million follow-on investment in CoreWeave Series A shares via a secondary transaction.

Mark Klein: To accompany press release, where we signed a five year contract with open AI, whereas up to $11 9 billion.

Mark Klein: Deal that would also give open AI, a $350 million equity staging for weeks.

Mark Klein: Additionally, the company announced it reached an agreement to acquire weights and biases, a leading AI developer platform.

Mark Klein: The acquisition extends core ways cloud platform by enabling an end to end experience for customers enhancing functionality for the worlds, leading AI labs and enterprises to build and deploy AI applications.

Speaker Change: According to a report from the information <unk> is acquiring weights and biases at a $1 $7 billion valuation.

Speaker Change: As previously announced during the fourth quarter, we made an additional $5 million follow on investment in core we've series a shares via secondary transaction data.

Mark Klein: That investment brought our total basis in Corweave to $25 million, making Corweave the single largest investment in our fund's history. With its best-in-class cloud infrastructure, we believe CoreWeave will continue its exponential growth and capitalize on accelerated AI adoption. We are pleased to see the company's tremendous success to date and look forward to the company's imminent IPO. This is exactly the type of pre-IPO access we seek to provide our shareholders.

Speaker Change: That investment brought our total basis in <unk> to $25 million, making <unk> the single largest investment in our in our funds history.

Speaker Change: With its best in class cloud infrastructure, we believe <unk> will continue its exponential growth and capitalize on accelerated AI adoption. We are pleased to see the companys tremendous success to date and look forward to the companys imminent IPO.

Speaker Change: This is exactly the type of pre IPO access we seek to provide our shareholders.

Mark Klein: We'll now discuss our other AI infrastructure investments, open AI and vast data. starting with OpenAI. As previously announced, during the third quarter we made a $17.5 million investment in OpenAI through the Class A interest of Archetype I Deep Ventures Fund. According to a Wall Street Journal report last month, as well as many other news sources, OpenAI is in talks to raise $40 billion at a $300 billion valuation. To put this into the context of our portfolio, if a financing were completed at this valuation, we anticipate the value of our open AI investment would be approximately double.

Speaker Change: I will now discuss our other AI infrastructure investments open AI and best data.

Speaker Change: Starting with open AI.

As previously announced during the third quarter, we made a $17 5 million investment in open AI through the class a interest of arc pipeline deep ventures fund.

Speaker Change: According to a Wall Street Journal report last month as well as many other new sources open AI is in talks to raise $40 billion at a $300 billion valuation.

Speaker Change: To put this into the context of our portfolio.

Speaker Change: Financing work completed at this valuation we anticipate the value of our open AI investment will be approximately double.

Mark Klein: In addition to this financing, it was announced that OpenAI is a lead partner in the Stargate project. According to the company's website, the Stargate project intends to invest $500 billion over the next four years building new AI infrastructure for open AI in the United States. Turning to the business itself since our last update, OpenAI has made significant strides in both its consumer and enterprise offerings. The company recently launched GPT-4.5, an advanced multimodal model that enhances speed, accuracy, and reasoning capabilities across text, image, and audio. OpenAI's growth has been remarkable. According to a report from the information, OpenAI expects to more than triple this year, revenue to more than triple this year, from $3.7 million to more than $12.5 million, and expects 2026 revenue to reach $28 billion.

Speaker Change: In addition to this financing it was announced at open AI is a lead partner in the Star Gate project. According to the company's web site to start a Stargate project intends to invest $500 billion over the next four years building new AI infrastructure for open AI in the United States.

Speaker Change: Yes.

Speaker Change: Turning to the business itself since our last update open AI has made significant strides in both its consumer and enterprise offerings. The company recently launched chat GPT GPT dash four five in advance multimodal model that enhances speed accuracy and <unk>.

Speaker Change: <unk> capabilities across <unk> image and audio inputs.

Speaker Change: <unk> growth has been remarkable according to a report from the information open AI expects to more than triple this year revenues to more than triple this year from $3 $7 million to more than $12 5 million and expect 2026 revenue to reach 28 billion.

Mark Klein: According to a Reuters report, Last month, OpenAI had more than 400 million active users. For comparison, according to a report from the information in January 2024, OpenAI had approximately 110 million active users.

Speaker Change: According to a Reuters report.

Speaker Change: Last month <unk> had more than 400 million active users for comparison. According to a report from the information in January 2024 open AI at approximately 110 million active users.

Mark Klein: According to a Reuters report on the enterprise side, OpenAI has more than 2 million paying business customers, more than double the number of business customers it had in As previously announced, during the quarter, we made a $12 million investment in VastData through the membership interests of IH10 LLC, and SPV, the sole portfolio asset, is in interest in VastData's Series B preferential. Fastdata is a data management solution for leading AI companies. BESS has emerged to... due to an inability of legacy data management solutions to serve customers building complex AI applications. For several decades, enterprise data software was built around the concept of tiers.

Speaker Change: According to a Reuters report on the enterprise side open AI has more than 2 million paying business customers more than double the number of business customers. It had in September.

Speaker Change: As previously announced during the quarter, we made a $12 million investment in vast data to the membership interests of IH Tan LLC, an SPV solar portfolio of assets is an interest in Vas status series B preferred shares.

Speaker Change: That data is a data management solution for leading AI companies that sells emerge too.

Speaker Change: Due to an inability of legacy data management solutions to serve customers building complex AI applications for.

Speaker Change: For several decades enterprise data software was built around the concept of tears tiered storage is the idea that data is segmented based on its importance to a daily operations. However.

Mark Klein: Tiered storage is the idea that data is segmented based on its importance to daily operations. However, AI applications need access to all data at once, rendering the tiered storage system increasingly obsolete. Vast collapses the tiered storage model by offering all-flash storage. All-flash storage allows all data in a pipeline, as opposed to data in a specific tier, to be accessed instantaneously. It's especially valuable for companies that train AI models to produce output. Since our last update, VAS has continued to expand its presence in the AI infrastructure space through key partnerships and new product innovations. The NHL selected VastData as its data infrastructure partner to support NHL Edge, the league's advanced analytics platform.

Speaker Change: AI applications need access to all data outwatch rendering the tiered storage system increasingly obsolete.

Speaker Change: Vas collapses tiered storage model by offering all flash storage all flash storage allows all data in our pipeline as opposed to data in a specific tier to be access instantly.

Speaker Change: This is especially valuable for companies that train AI models to produce outputs.

Speaker Change: Since our last update versus continued to expand its presence in the AI infrastructure space, two key partnerships and new product innovations recently.

Speaker Change: NHL selected vast data as its data infrastructure partner to support NHL H, the league's advanced analytics platform.

Mark Klein: The NHL will leverage VastData to power real-time tracking of players and the puck, generating new insights for teams, broadcasters, and fans. Additionally, VastData recently announced InsightEngine, a next-generation AI-powered analytics platform built in collaboration with NVIDIA. InsightEngine enables organizations to analyze large data sets. computing power to power real-time decision-making. Fast data has quickly cemented itself as a dominant AI infrastructure provider. According to a company press release at the end of 2023, fast data has reached over $200 million in ARR. Additionally, the company had been cash flow positive for the last three years. According to PitchBook, VastData has raised almost $400 million in equity financing from such investors as NEA, General Atlantic, TPG, and others.

Speaker Change: NHI will NHL will leverage fast added to power real time tracking of players and the puck generating new insights for teams broadcasters and fans. Additionally, best at our recently announced insight engine a next generation AI powered analytics platform.

Speaker Change: Built in collaboration with Nvidia.

Speaker Change: Insight engine enables organizations to analyze large datasets instantly leveraging accelerated computing power to power real time decision, making.

Speaker Change: <unk> has quickly cemented itself as a dominant AI infrastructure provider. According to accompany press release at the end of 2023 best add ahead reach over $200 million and Additionally, the company had been cash flow positive for the last three years.

Speaker Change: According to pitch book Bad debt has raised almost $400 million.

Speaker Change: And equity financing from such investors is NEA General Atlantic TPG and others. We believe that that is poised for growth as a leading data management provider for the AI universe.

Mark Klein: We believe VastData is poised for growth as a leading data management provider for the AI universe.

Mark Klein: Before highlighting additional updates in our portfolio, I'd like to turn to our fourth quarter results. We ended the quarter with a net asset value of $157.6 million, or $6.68 per share. Please turn to slide 10. Sutter Rock Capital's top five positions as of December 31st were CoreWeave, which includes our $15 million investment in CW Opportunity 2L2. and our aggregate $10 million dollar follow on secondary investment. OpenAI through our investment in ARC Type 1 Deep Ventures Fund, Learneo, BlinkHealth, and Whoopi. These positions accounted for approximately 44% of the investment portfolio at fair value. Additionally, as of December 31st, our top 10 positions accounted for approximately 74% of the investment portfolio.

Speaker Change: Before highlighting additional updates at our portfolio I would like to turn to our fourth quarter results. We ended the quarter with a net asset value of $157 6 million or $6 68 per share.

Speaker Change: Please turn to slide 10.

Speaker Change: Cerro Capital's top five positions as of December 31, or <unk>, which includes our $15 million investment in CW opportunity to LP.

Speaker Change: And our aggregate $10 million follow on secondary investments inquiries.

Speaker Change: Open AI through our investment in our type one deep ventures fund learn Ao Blake health and we will see.

Speaker Change: These positions accounted for approximately 44% of the investment portfolio at fair value.

Speaker Change: Additionally, as of December 31, our top 10 positions accounted for approximately 74% of the investment portfolio.

Mark Klein: As of your end, our liquid assets totaled approximately $23.6 million, representing 10% of our gross assets.

Speaker Change: As of year end, our liquid assets totaled approximately $23 $6 million, representing 10% of our gross assets.

Mark Klein: Continuing with our broader portfolio, in December Service Titan priced its IPO at $71 per share above the anticipated range, raising approximately $625 million. closed the first day of trading at $101 per share, reflecting a 42% increase. As of today, servants, tight, and stock closed above $85 per share, well above our cost. We are pleased with ServiceTitan's strong public market debut, which we expect to be the first of several IPOs in our current portfolio. As is typical, we have a 180-day lock-up period from the IPO date on our Service Titan public share.

Speaker Change: Continuing with our broader portfolio and December service tightened priced its IPO at $71 per share above the anticipated raise raise range raising approximately six $625 million.

Speaker Change: Close the first day of trading at $101 per share, reflecting a 42% increase as of today service tightened stock closed above 50 $85 per share well above our cost basis. We are pleased with service tightened strong public market debut, which we expect to be the first of several ipos that are.

Speaker Change: Current portfolio.

Speaker Change: As is typical we have a 180 day lockup period from the IPO date on our service tightened public shares.

Mark Klein: Turning to Canva. As previously discussed, Canva is an online productivity design software and collaboration platform with a mission to empower everyone in the world to design. as of December, Canva had more than 220 million monthly users from 200 million monthly users in October. According to the same source, Canva hit the milestone. 30 billion designs created by the. That is over 38 and a half million designs now created per day.

Speaker Change: Turning to Canada as previously discussed Canada, as an online productivity T design software and collaboration platform with a mission to empower everyone in the world to design.

Speaker Change: Turning to the company's website as of December Camber had more than 220 million monthly users and over 190 different countries up from 200 million monthly users in October.

Speaker Change: According to the same source cabinet hit the milestone.

Speaker Change: 30 billion designs created by Dicamba community that has over 38 5 million designs now created per day.

Mark Klein: On the enterprise side, the company announced that more than 95% of the Fortune 500 is using Canva to create, collaborate, and invest. and Communicate.

Speaker Change: On the enterprise side, the company announced that more than 95% of the fortune 500 is using camera to create collaborate.

And communicate and communicate according to a CNBC report, Canada is now generating approximately $2 5 billion in annualized revenue.

Mark Klein: According to a CNBC report, Canva is now generating approximately $2.5 billion in annualized revenue.

Mark Klein: As previously discussed, the company reported having completed several secondary transactions at a $32 billion valuation, up from the $26 billion valuation it received in its larger company tender in April.

Speaker Change: As previously discussed the company reported having completed several secondary transactions at a $32 billion valuation up from the $26 billion valuation it received and it's larger company tender in April we made our $10 million investment in camber on similar terms.

Mark Klein: We made our $10 million investment in Canva on similar terms as the reported April company For more information visit www.FEMA.gov Moving on to Wu.

Speaker Change: As a reported April company tender.

Speaker Change: Moving on to walk.

Mark Klein: Subsequent to year-end, we executed a $1 billion follow-on investment in WOOP via a safe note, bringing our total cost basis to $11 million. We made our initial $10 million investment in WOOP in Q2 2022 via a secondary transaction. Since our initial investment, WOOP has solidified its position as a leader in the wearable fitness and performance tracking space. Last year, Whoop expanded into several key international markets, including the Middle East, where it has seen strong consumer adoption and growing brand recognition. Whoop has also continued to distinguish himself as the go-to wearable for elite athletes and a high-performance individual.

Speaker Change: Subsequent to year end, we executed a $1 billion follow on investment in move.

Speaker Change: Safe note, bringing our total cost basis to $11 million, we made our initial $10 million investment and we will be in Q2 2022 by a secondary transaction.

Speaker Change: Since our initial investment will be solidified its position as a leader in the wearable fitness and performance tracking space.

Speaker Change: Last year won't be expanded into several key international markets, including the middle East, where it has seen strong consumer adoption and growing brand recognition.

Speaker Change: What has also continued to distinguish itself as the go to wearable for elite athletes and high performance individuals.

Mark Klein: In a testament to its credibility at the highest level of sports, Cristiano Ronaldo became a global brand partner, further elevating Wu's presence in elite performance training. Additionally, Patrick Mahomes wore a whoop during the Super Bowl, showcasing the device in tracking and optimizing real-time athletic performance on the biggest stage in sports.

Speaker Change: And a testament to its credibility at the highest level of spores Cristiano Ronaldo became a global brand partner further elevating whoops presence and elite performance training. Additionally, Patrick.

Speaker Change: <unk> homes, where our awards during the Super Bowl showcasing the device and tracking and optimizing real time athletic performance on the biggest stage in sports.

Mark Klein: I would now like to provide an update on our portfolio company, Liquid Debt. Last month, Liquid Death aired its first National Super Bowl advertisement.

Speaker Change: I would now like to provide an update on our portfolio of company liquid death.

Speaker Change: Less debt last month liquid debt and its first national Super Bowl advertising.

Mark Klein: Advertisement Marking a significant milestone in the company's marketing strategy. In addition to this major marketing initiative, since our investment, Liquid Death has expanded its product line with the introduction of soda-inspired sparkling waters. The new flavors Killer Cola, Dr. Death, and Root Beer Wrath offer consumers a unique twist on soda flavors, aligning with the media. brand's edgy strategy. The addition of soda-flavored sparkling water adds to the ever-growing portfolio of teas, sparkling waters, and still water.

Speaker Change: Advertising.

Speaker Change: Marking a significant milestone in the company's marketing strategy.

Speaker Change: In addition to this major marketing initiatives since our investment liquid desk has expanded its product line with the introduction of soda inspired sparkling waters, the new flavors killer Coca Cola Doctor debt and move BRAF offers consumers a unique twist on soda flavors.

Speaker Change: Mining was the media.

Speaker Change: Brands edgy strategy. The addition of sort of flavored sparkling water adds to the ever growing portfolio of Ts spoke sparkling waters and still waters.

Mark Klein: These developments reflect Liquid Debt's commitment to innovative market and product diversification, reinforcing its position as a disruptive force in the beverage industry. We are excited about Liquid Death's trajectory and remain confident in its potential to further disrupt the beverage market. The company's commitment to creating marketing and product innovation reflects its ability to stand out in a competitive market and we look forward to supporting its continued success.

Speaker Change: These developments reflect liquid desk commitment to innovative market and product diversification reinforcing his position as a disruptive force in the beverage industry. We're excited about liquid desk trajectory and remain confident in its potential to further disrupt the beverage market.

Speaker Change: Company's commitment to creating marketing and product innovation reflects its ability standout in a competitive market and we look forward to supporting its continued success.

Mark Klein: Please turn to slide 15. Turning to our SPAC investors.

Speaker Change: Please turn to slide 15.

Mark Klein: We are excited to report the full exit of our position in Oklo during the fourth quarter, achieving a significant return of over 20 times our initially invested capital in AltSea sponsor LLC, the sponsor of AltSea Acquisition. Additionally, we exited all of our public square common shares at a significant profit.

Speaker Change: Turning to our spec investments we are excited to report the full exit of our position in <unk> during the fourth quarter quarter, achieving a significant return of over 20 times are initially invested capital and all see sponsor LLC. The sponsor of <unk> acquisition Corp. Additionally, we exited all.

Speaker Change: All of our public square common shares at a significant profit subsequent to year end Columbia acquisition to announce it entered into a definitive business combination agreement.

Mark Klein: Subsequent to year end, Columbia Acquisition II announced it entered into a definitive business combination agreement. Transaction is expected to close this summer. These examples are all testaments to the success of our SPAC sponsor strategy we established several years ago.

Speaker Change: The transaction is expected to close this summer.

Speaker Change: These examples are all testaments to the success of our CIS of our spec sponsor strategy, we established several years ago.

Allison Green: Allison will provide additional detail on our public positions and investment monetizations in her remarks.

Speaker Change: Alison will provide additional detail on our public positions and investment monetization in her remarks.

Mark Klein: Before I turn the call over to Allison, I would like to reiterate how excited we are about the positions of our portfolio. Across AI infrastructure and applications and consumer goods and services, our portfolio is packed with market-leading companies on the verge of IPOs. Within AI infrastructure, CoreWeave, OpenAI, and VastData represent a quarter of gross assets and 37% of our net. In 2024 alone, we invested nearly $55 million in AI infrastructure. Then AI adjacent companies, Canva, ServiceTight, Whoop, BlinkHealth, and Locus Robotics representing another 29% of our gross assets. Within our consumer vertical, Liquid Death and Lime are two dynamic leading brands with businesses at scale for IPOs.

Speaker Change: Before I turn the call over to Allison I would like to reiterate how excited we are about the positions of our of our portfolio across AI infrastructure and applications and consumer goods and services our portfolio is packed with market leading companies on the verge of Ipos.

Speaker Change: Within AI infrastructure core we've opened at open AI invest that represent a quarter of gross assets and 37% of our net assets.

Speaker Change: 2024 alone, we invested nearly $55 million in AI infrastructure.

Speaker Change: Then AIA adjacent companies canvas service state Woop, Blake health and Lucas robotics, representing another 29% of our gross assets within our consumer vertical liquid death in line, our two dynamic leading brands with businesses at scale for Ipos altogether. These investment.

Mark Klein: All together, these investments give our investors access to some of the most highly anticipated pre-IPO names in the private market.

Speaker Change: Give our investors access to some of the most highly anticipated pre IPO names in the private markets.

Allison Green: Thank you for your attention, and with that, I will hand it over to Allison Green, our Chief Financial Officer. Thank you, Mark. I would like to follow Mark's update with a more detailed review of our fourth quarter and financial results as of December 31st, as well as a brief highlight of activities subsequent to year-end to date. This will include our investment activity, an update on our current 6% notes due 2026, their repurchase, the 6.5% convertible notes due 2029, and current liquidity. As Mark mentioned, during the fourth quarter, we completed a $12 million investment in the membership interest of IH10 LLC.

Speaker Change: Thank you for your attention and with that I will hand, it over to Alison Greene, our Chief Financial Officer.

Speaker Change: Mike I would like to follow Mark's update with a more detailed review of our fourth quarter and financial results as of December 31st as well as a brief highlight of activity subsequent to year end to date.

Speaker Change: This will include our investment activity and update on our current 6% notes due 2020 that repurchase the second half percent convertible notes due 2029 and current liquidity as.

Speaker Change: As Mark mentioned during the fourth quarter, we completed a $12 million investment in membership interest of <unk> <unk> as an entity, who sell portfolio asset interest in vast data series B preferred shares through an SPV.

Allison Green: IH10 LLC is an entity whose sole portfolio asset is interest in Vast Data's Series B preferred shares through an SPV. Additionally, during the fourth quarter, we made a $5 million follow-on investment in CoreWeave's Series A preferred shares through a secondary transaction. Aggregated with a $15 million investment in the Class A interest of CW Opportunity 2LP, an SPV for which the Class A interest is solely invested in the Series C preferred shares of CoreWeave Inc., and the $5 million follow-on investment in CoreWeave's common shares through a secondary transaction, both made earlier this year, our current aggregate exposure to CoreWeave currently stands at $25 million on a cost basis.

Speaker Change: Additionally, during the fourth quarter, we made a $5 million follow on investment in core series, a preferred shares to a secondary transaction aggregated with the $15 million investment in a class a interest a CW opportunity to LTE and SUV for which the class a interest is totally invested in our series C preferred shares of <unk>, Inc, and a $5 million follow on investment in core.

Speaker Change: Common shares through a secondary transaction both made earlier this year, our current aggregate exposure to core we've currently stands at $25 million on a cost basis.

Allison Green: Subsequent to year-end, we completed a $1 million follow-on investment in WHOOP via a safe note, bringing our aggregate to-date investment in WHOOP to approximately $11 million, and an aggregate additional $300,000 follow-on investment in Orchard Series 1 Senior Preferred Shares and Safe Note, bringing our aggregate to-date investment in Orchard to approximately $12.8 million.

Speaker Change: Subsequent to year end, we completed a $1 million follow on investment in the state's note, bringing aggregate to date and Beckman and we move to approximately $11 million and in aggregate additional $300000 follow on investment in Orchard series, one senior preferred shares.

Speaker Change: Bringing our aggregate today in my opinion or checks of approximately $12 $8 million.

Allison Green: In November, we exited our position in Oklo following the expiration of our lock-up restrictions. We received the Oklo Public Common stock following their successful merger with Alt-C Acquisition Corp., in which we invested approximately $250,000 in that SPAC sponsor. Upon the sale, we received proceeds of approximately $5.1 million, resulting in a net realized gain on the investment of approximately $4.8 million.

Speaker Change: November we exited our position in Oklahoma following the exploration of our lockup restriction.

Speaker Change: You see that outflow public common stock buying their successful merger with <unk> acquisition Corp, which we invested approximately $250000 and spot there. Upon the sale. We received proceeds of approximately $5 $1 million, resulting in a net realized gain on the investment of approximately $4 8 million during the fourth quarter, we continued to exit our position in that.

Allison Green: During the fourth quarter, we continued to exit our position in the Public Common shares of Public Square, and had fully exited the position as of December 3rd. We received the Public Square Public Common stock and public warrants following their successful merger with the first Columbia SPAC, in which we invested approximately $2.6 million in that SPAC sponsor. During the fourth quarter, we sold the remaining $1,616,187 Public Square Common shares for approximately $5.3 million in net proceeds, resulting in a realized gain of approximately $4 million. Additionally, during the fourth quarter, we continued to monetize our holdings in the public warrants of Public Square, and sold 500,000 Public Square warrants for approximately $539,000 in net proceeds, resulting in a realized gain of approximately $324,000.

Speaker Change: Public common shares at a public square and have fully exited their position as at December 3rd we received in the public square public common stock and public warrants following their successful merger with the first Columbia.

Speaker Change: In which we invested approximately $2 $6 million in that stack spot there.

Speaker Change: During the fourth quarter, we sold the remaining $1 million 616187 public square common shares for approximately $5 $3 million in net proceeds resulting in a realized gain of approximately $4 million.

Speaker Change: During the fourth quarter, we continued to monetize our holdings in our public warrants a public square and sold 500000 public square warrants for approximately $539000 in net proceeds resulting in a realized gain of approximately 324th appetite to date, we have sold 1 million 976032 public common shares and 903.

Allison Green: To date, we have sold 1,976,032 Public Common shares and 903,963 Public warrants of Public Square for approximately $7.3 million in net proceeds, and a resulting realized gain to date of approximately $5.3 million. Finally, during the quarter, we sold 125,000 Public Common shares of FORGE, resulting in net proceeds of approximately $130,000, and a realized gain of approximately $14,000, and we received a distribution of approximately $143,000 related to our investment in True Global Ventures 4+.

Speaker Change: 963 public warrants a public square for approximately $7 $3 million in net proceeds and a resulting realized gains to date of approximately $5 $3 million.

Speaker Change: Finally during the quarter, we sold 145000 public common shares of forge, resulting in net proceeds of approximately $130000 and a realized gain of approximately $14000 and we received a distribution of approximately $143000 related to our investment in Schuh Global ventures <unk>. Please turn to slide 16.

Allison Green: Please turn to slide 16. Segmented by seven general investment themes, the top allocation of our investment portfolio at year-end was to artificial intelligence, infrastructure, and applications, representing approximately 28% of the investment portfolio at fair value. Software as a service and applications and consumer goods and services were the next largest categories, with approximately 24% and 14% of our portfolio respectively. Approximately 13% of our portfolio was invested in education technology companies, and the logistics and supply chain category accounted for approximately 11% of the fair value of our portfolio. Financial technology and services accounted for 8% of the fair value of our portfolio, and sports accounted for 2% as of December 31st.

Speaker Change: Segmented by seven general investment themes, the top allocation of our investment portfolio at year end with the artificial intelligence infrastructure and applications, representing approximately 28% of the investment portfolio at fair value software as a service and applications and consumer goods and services over the next largest categories with approximately 24% and 14%.

Speaker Change: Our portfolio, respectively, approximately 13% of our portfolio was invested in education technology companies, and our logistics and supply chain category accounted for approximately 11% of the fair value of our portfolio financial technology and services accounted for 8% of the fair value of our portfolio and further support the accounted for 2% as of December 31st Please turn to <unk>.

Allison Green: Please turn to slide 17.

Allison Green: I'd like to provide more detail on the note repurchase program for the 6% notes due 2026 and the issuances of our 6.5% convertible notes due 2029.

Speaker Change: Slide 17.

Speaker Change: I can provide more detail on the note repurchase program for the 6% notes due 2026 and issuance of our six 5% convertible notes due 2029 on August six 2024, our thorough capital's board of directors approved a discretionary note repurchase program, which allows the company to repurchase up to $35 million of our 6% notes due 2020.

Allison Green: On August 6th, 2024, Sutter Rock Capital's Board of Directors approved a discretionary note repurchase program which allows the company to repurchase up to $35 million of our 6% notes due 2026, exclusive of any applicable fees, through open market purchases, including block purchases, in such manner as will comply with the provisions of the Investment Company Act of 1940, as amended, and the Securities Exchange Act of 1934, as amended. During the quarter ended December 31st, 2024, we repurchased an additional 203,168 of the 6% notes due 2026 under the note repurchase program. As of December 31st, we had repurchased 1,213,304 of the 6% notes due 2026 under the note repurchase program.

Speaker Change: Are there any applicable fees.

Speaker Change: Open market purchases, including block purchases in such a manner as will comply with the provisions of the investment Company Act of $19 40, as amended and the Securities Exchange Act of 1934 at the Manhattan.

Speaker Change: During the quarter ended December 31, 2024, we repurchased an additional 203168 at the 6% notes due 2020 under that repurchase program as of December 31, we had repurchased $1 million 213304 of the 6% notes due 2026 under the note repurchase program subsequent to year end through today, We report.

Allison Green: Subsequent to year-end through today, we repurchased an additional 199,990 of the 6% notes, due 2026, under the note repurchase program.

Speaker Change: An additional 199990 of the 6% notes due 2020. Thanks I didn't note repurchase program today at $1 million occurring 16462 are approximately $35 $3 million in aggregate principal dollar amount of the 6% notes have been repurchased for approximately $35 million, resulting in a total use of the authorized available.

Allison Green: Today, $1,616,462, or approximately $35.3 million in aggregate principal dollar amount of the 6% notes have been repurchased for approximately $35 million, resulting in the total use of the authorized available funds.

Allison Green: Now moving on to the 6.5% convertible note issuance. On August 6th, Sutter Rock Capital entered into a note purchase agreement by and between the company and a private purchaser, pursuant to which we may issue up to a maximum of $75 million in aggregate principal amount of 6.5% convertible notes due 2029. Pursuant to the note purchase agreement, on August 14th, we issued and sold and the purchaser purchased $25 million in aggregate principal amount of the convertible notes, also referred to as the initial notes.

Speaker Change: Simon.

Simon: Now moving on to the six 5% convertible note issuance on August 6th Zero capital entered into a no participant women by and between the company and a private purchase Eric pursuant to which we may issue up to a maximum of $75 million in aggregate principal amount of six 5% convertible notes due 2029.

Simon: The note purchase agreement on August 14th we issued and sold in the purchase repurchase $25 million in aggregate principal amount of the convertible notes also referred to as the initial net.

Allison Green: For more information visit www.SutterRockCapital.com Under the note purchase agreement, upon mutual agreement between the company and the purchaser, we may issue additional convertible notes with the same terms as the additional notes for sale and subsequent offerings to the purchaser, which we refer to as additional notes, or issue additional notes with modified pricing terms, which we refer to as new notes, in the aggregate for both the additional notes and the new notes up to a maximum of $50 million in one or more private offerings. Interest on the convertible notes will be paid quarterly in arrears on March 30th, June 30th, September 30th, and December 30th at a rate of 6.5% per year.

Simon: Under the note purchase agreement upon mutual agreement between the company and the purchaser. We may issue additional convertible notes with the same terms as the additional notes for sale and subsequent offerings to the purchaser, which we referred to as additional notes or issue additional notes with modified pricing terms, which we refer to as new notes in the aggregate for both the additional notes and the new notes up to a maximum of 50 million.

Simon: And one or more private offerings interest on the convertible notes will be paid quarterly in arrears on March 30th June 30th September 30th in December 30th at a rate of six 5% per year.

Allison Green: The convertible notes will mature on August 14th, 2029, and may be redeemed in whole or in part at any time or from time to time at our option on or after August 6th, 2027, upon the fulfillment of certain conditions. The convertible notes will be convertible into shares of our common stock at the purchaser's sole discretion at an initial conversion rate of 129.0323 shares of our common stock per $1,000 principal amount of the convertible notes, subject to adjustments and limitations as provided in the note purchase agreement. The net proceeds from the offering of the convertible notes will be used to repay outstanding indebtedness, make investments in accordance with our investment objective and investment strategy, and for other general corporate purposes.

Simon: Notes will mature on August 14, 2029, and may be redeemed in whole or in part at any time or from time to time at our option on or after August six 2020.

Simon: Upon the fulfillment of certain conditions.

Simon: Convertible notes will be convertible into shares of our common stock at a purchase their sole discretion at an initial conversion rate of 129.0323 shares of our common stock per $1000 principal amount of the convertible notes subject to adjustments and limitations as provided in the note purchase agreement. The net proceeds from the offering of the convertible notes will be used to repay outstanding.

Simon: Indebtedness make investments in accordance with our investment objective and investment strategies and for other general corporate purposes.

Allison Green: The note purchase agreement includes customary representations, warranties, and covenants by the company.

Simon: The note purchase agreement includes customary representation warranties and covenants by the company on October nine 2024% pursuant to the note participation, we issued and sold in the purchase or purchased $5 million in aggregate principal amount of additional notes subsequent to your earnings pursuant to the note purchase agreement on January 16th we issued and sold in the purchase of purchased an additional.

Allison Green: On October 9, 2024, pursuant to the note purchase agreement, we issued and sold in the purchaser purchased $5 million in aggregate principal amount of additional notes. Subsequent to year end, pursuant to the note purchase agreement, on January 16, we issued and sold in the purchaser purchased an additional $5 million in aggregate principal amount of the additional notes. The total $10 million additional notes are treated as a single series with the initial notes and have the same terms as the initial notes. The additional notes are fungible and rank equally with the initial notes. Upon issuance of the most recent additional notes on January 16, 2025, the outstanding aggregate principal amount of our 6.5% convertible notes to 2029 became $35 million.

Simon: $5 million in aggregate principal amount of the additional net the total $10 million just shown that are treated as a single series with the initial notes and have the same terms as the initial notes. The additional notes are fungible and rank equally with the initial net upon issuance of the most recent additional notes on January 16, 2025, the outstanding aggregate principal amount of our six 5% convertible.

Simon: Notes due 2029 became $35 million.

Allison Green: Please turn to slide 18.

Allison Green: We ended the fourth quarter in fiscal year 2024 with an NAV per share of $6.68, which is consistent with our financial reporting. The decrease in NAV per share from $6.73 at the end of Q3 was primarily driven by a $0.22 per share decrease from the net change and unrealized depreciation of our investments, a $0.16 per share decrease due to net investment loss, and a $0.06 per share decrease from the impact of stock-based compensation during the quarter. The decrease in NAV per share was offset by a $0.39 per share increase resulting from net realized gain on our portfolio investments during the quarter.

Simon: Please turn to slide 18.

Simon: We ended the fourth quarter and fiscal year 2024, with an NAV per share of <unk> 68, which is consistent with our financial reporting.

Simon: The decrease in NAV per share from $6 73 at the end of Q3 was primarily driven by a 22% per share decrease from the net change in unrealized depreciation of our investments at <unk> <unk> per share decrease due to net investment loss and a <unk> <unk> per share decrease from the impact of stock based compensation during the quarter. The decrease in NAV per share was offset by a 39%.

Simon: Sure increase resulting from net realized gain on our portfolio investments during the quarter.

Allison Green: Regarding our liquidity as of year end, we ended the year with approximately $23.6 million of liquid assets, including approximately $20 million in cash and approximately $3.6 million in unrestricted public securities. The $14 million of public securities subject to lock-up or other sales restrictions as of year end are not included in this balance.

Simon: Regarding our liquidity as of year end, we ended the year with approximately $23 $6 million of liquid assets, including approximately $20 million in cash and approximately $3 $6 million in unrestricted public securities the $14 million of public securities subject to lockup or other sales restrictions as of year end are not included in the balance.

Allison Green: I'd like to conclude with some notes on our share repurchase program. As Mark mentioned earlier, Cerro Capital is committed to initiatives that enhance shareholder value. Accordingly, as previously announced, on October 29th, our Board of Directors authorized a expansion to the share repurchase program to $64.3 million and an extension of the share repurchase program through October 31st, 2025. Since the inception of the share repurchase program in August 2017, we have repurchased a total of over 6 million shares of our common stock for a total deployment of approximately $39.3 million of the $64.3 million authorized by the Board.

Speaker Change: I'd like to conclude with some notes on our share repurchase program as Mark mentioned earlier, so capital is committed to initiatives that enhance shareholder value. Accordingly, as previously announced on October 29, our board of directors authorized a $4 $3 million expansion to the share repurchase program to $64 3 million and an extension of the share repurchase program through October 31 2025.

Since the inception of the share repurchase program in August 2017, we have repurchased a total of over 6 million shares of our common stock for a total deployment of approximately $39 $3 million of the $64 $3 million authorized by the board approximately $25 million remains authorized under the share repurchase program that is now set to expire on October 31, 2025 and two.

Allison Green: Approximately $25 million remains authorized under the share repurchase program that is now set to expire on October 31st, 2025. At December 31st, 2024, there were 23,601,566 shares of the company's common stock outstanding. Presently, there are 23,551,859 shares of the company's common stock outstanding.

Speaker Change: December 31, 2024, there were $23 million 601566 shares of the company's common stock outstanding presently there are $23 million 551859 shares of the company's common stock outstanding that concludes my comments and wed like to thank you for your interest and support of startup capital now I will turn the call over to the operator to start the Q&A session operator.

Allison Green: That concludes my comments. We would like to thank you for your interest and support of Cerro Capital.

Melissa: Now, I will turn the call over to the operator to start the Q&A session. Operator? Thank you very much. As a reminder, if you would like to ask a question on today's call, you may press star followed by one on your keypad to register your question. To withdraw your question for any reason, you may press star two.

Speaker Change: Thank you very much as a reminder, if you would like to ask a question on today's call. You May Press Star followed by one on your keypad to registering your question.

Speaker Change: To withdraw your question for any reason you May press star two.

Melissa: We kindly ask that you limit yourself to one question.

Speaker Change: Kindly ask yourself okay.

Speaker Change: I ask that you limit yourself to one question.

Brian McKenna: And we'll go ahead and take our first question from Brian McKenna. at Citizens Bank. Thanks, hope everyone is doing well. I know there's a lot to be excited about, you know, looking at the portfolio today, specifically related to some of the recent investments you've made, and then also just the pipeline for some of these IPOs, but NAD did decline 16% in 2024. So, you know, what's the internal base case expectation for NAD growth in 2025? And then is there a way to think about how much the legacy portfolio could see some additional markdowns from here?

Speaker Change: And we'll go ahead and take our first question from Brian Mckenna.

Brian McKenna: At citizens Bank.

Speaker Change: Please go ahead. Thanks.

Speaker Change: So if everyone is doing well I know, there's a lot to be excited about looking at the portfolio today.

Speaker Change: Specifically related to some of the recent investments you've made and then also just the pipeline for for some of these ipos.

Speaker Change: <unk> declined 16% in 2024, so what's the internal base case expectation for growth in 2025, and then is there a way to think about how much of the legacy portfolio could see some additional markdowns from here.

Mark Klein: Thanks, Brian, appreciate it.

Brian: Thanks, Brian appreciate it.

Mark Klein: We don't typically give guidance on a go-forward NAB because that would require us to understand where things will be valued at the end of the year. I think there's some math you could do anyhow. You look at where our current portfolio is marked, look at where the core we've anticipated range would be, and where it ultimately trades, given the size of that investment, you can certainly... make some assumptions about where that will land.

Brian: We don't typically give guidance on a go forward NAV because that would require us to understand where things will be valued at the end of the year. I think there is some math you could do anyhow.

Brian: You look at where our current portfolio is marked.

Brian: Look at where the core we've anticipated range would be and where it ultimately trades given the size of that investment you can certainly.

Brian: Make some assumptions about where that will land.

Mark Klein: The same with OpenAI as we discussed in our opening remarks. As to the rest of the portfolio, I think that's really hard to tell. Obviously, recent market volatility probably would make it even harder to sort of sort that. But there is some simple math around a couple of our names that would at least give you an indication of where we think NAV is now.

Brian: The same is same with open AI as we did at least discuss in our opening remarks as to the rest of the portfolio I think thats really hard to tell.

Recent market volatility probably would make it even harder to sort of sort that but there is some simple math around a couple of our names that would at least give you an indication of where we think.

Mark Klein: In respect to further markdowns in the portfolio, our largest, and we've discussed it on this call. Investors has been learning. And we have marked Lernio broadly all the way down or close to where the preference is in the Lernio capital stack. And that's been the biggest. weight on our portfolio on the downside. Thank you.

He is now in respect to further markdowns in the portfolio, our largest and we discuss it on this call.

Brian: <unk>.

Brian: With investors has been learning.

Brian: Alright.

Brian: We have marked learn ido broadly all the way down or close to where the preferences in the and the learning.

Brian: Capital stack.

Brian: And thats been the biggest.

Brian: Wait on our portfolio on the downside.

Brian: Thats helpful.

Marvin Fong: Our next question is from Marvin Fong with BTIG.

Brian: Okay.

Speaker Change: Thank you. Our next question is from Marvin Fong with BP.

Marvin Fong: Please go ahead. Great. Thanks for taking my questions.

Speaker Change: Please go ahead.

Marvin Fong: Alright, great and thanks for taking my questions.

Marvin Fong: Your opening remarks are very comprehensive, so I thought I would just kind of ask on the capital structure. You've issued a light amount of 6.5 notes as you repurchased the 6% notes. Now that you've repurchased your full authorization of the 6% notes, should you kind of think about your appetite on the converged structure as basically set now, or would you consider issuing additional notes on the 6.5 to increase your... your cash on hand and add to your investable assets.

Speaker Change: And.

Speaker Change: Your opening remarks were very comprehensive so I thought it would.

Just kind of ask on the on the on the.

Speaker Change: On the capital structure so.

Speaker Change: You've issued.

Speaker Change: Like amount of six and a half nodes.

Speaker Change: Okay.

Speaker Change: As you've repurchased the 6% notes and.

Speaker Change: That too.

Speaker Change: Repurchase your full authorization in the 6% notes.

Speaker Change: Think about your appetite for on the convert structure.

Speaker Change: Basically set now or would you.

Speaker Change: <unk>.

Speaker Change: Issuing additional notes on the six and a half to increase your.

Speaker Change: Your cash on hand, and then add to your.

Mark Klein: Thanks, Marvin. As you've noted, we have retired 35, and in Allison's remarks, $35 million of our 6% notes that come due at the end of next year. We have issued a like-kind amount of the convertible notes that carry a 6.5% coupon that are convertible at $7.75, which was 104% premium when issued. to our stock price at the time. And so our debt number has stayed the same. At the present time, we're comfortable with that much, that kind of leverage on our existing portfolio. So I would not anticipate at the present time issuing any more convertible securities against our existing portfolio.

Speaker Change: Investable assets. Thanks.

Marvin Fong: Thanks Marvin.

Marvin Fong: As you've noted we have retired 35 in allison's in March $35 million of our 6% notes that come due at the end of next year.

Marvin Fong: We have issued a light kind amount of the convertible notes that carries six 5% coupon that are convertible at $7 75, which was 104% premium when issued.

Marvin Fong: To our stock price at the time and so our debt number has stayed the same at the present time, we're comfortable with that much that kind of leverage on our existing portfolio. So I would not anticipate at the present time issuing.

Marvin Fong: Any more convertible securities against our existing portfolio were comfortable with.

Mark Klein: We're comfortable.

Mark Klein: Association, and Citizen's Rights.

Marvin Fong: Our capitalization as it is right now.

Mark Klein: Thank you very much.

Brian McKenna: And we do have a follow-up question from Brian McKenna of Citizens, please go ahead. Okay, great. Thanks for the follow up.

Speaker Change: Thank you very much and we do have a follow up question from Brian Mckenna of citizen. Please go ahead.

Mark Klein: Mark, I believe you mentioned that the number of pre IPO companies in the portfolio today is the largest it's ever been. So what's the total dollar amount of these investments? And then is there any way to think about what percent of this part of the portfolio can make it to the public markets over the next year? Great question. So, well, I'm pretty hopeful that Corweave makes it to the public markets this month. So that would be a large one. I think some of the names that may come throughout the year are Lime, which has made it very clear that they want to come public.

Brian McKenna: Okay, great. Thanks for the follow up.

Brian McKenna: Mark I believe you mentioned that the number of pre IPO companies in the portfolio today is the largest it's ever been so what is the total dollar amount of these investments and that is there any way to think about what percent of this part of the portfolio can make it to the public markets over the next year.

Brian McKenna: Great question so.

Brian McKenna: I'm pretty hopeful that <unk> makes it to the public markets.

Brian McKenna: So that would be a large one.

Brian McKenna: I think some of the names that may come throughout the year.

Brian McKenna: Our line, which has made it very clear that they want to come public camp.

Mark Klein: Canva may come public by the end of the year. I think Liquid Debt is sometime earlier next year. I think that Vast has been mentioned many times as a public company this year, but they're pretty quiet about it. So that's broadly, I mean, right now we can see, we clearly have visibility to Corweave. I think all else is sort of up to where markets are. how excited people are to actually delve into the private markets.

Brian McKenna: Camber may come public by the end of the year I think liquid debt is sometime earlier next year.

Brian McKenna: I think that.

Brian McKenna: Vast as been mentioned many times as a public company this year, but they are pretty quiet about it.

Brian McKenna: So that that's broadly I mean.

Brian McKenna: Right now we.

Brian McKenna: We can see.

Brian McKenna: Clearly I have visibility to core we've I think all else is sort of up to where markets are and.

Brian McKenna: How excited people are to actually delve into the private markets, but the names that we listed earlier are the ones that are within sometime between the end of this year early part of next year that we think have an opportunity to come public.

Mark Klein: But the names that we listed earlier are the ones that are within, you know, sometime between the end of this year, early part of next year that we think of the non-profit.

Mark Klein: Thank you.

Mark Klein: I would like to turn the call back over to Mark Klein for any closing remarks. Well, thank all of you for joining our call. We really do feel this is an amazingly exciting time, despite the extreme volatility in the public markets. We look forward to the CoreWeave IPO. We look forward to some of our other companies and all the exciting developments within them. Thank you again for your ongoing support.

Brian McKenna: Thank you I would like to turn the call back over to Mark Klein for any closing remarks.

Brian McKenna: Well. Thank all of you for joining our call. We really do feel this is an amazingly exciting time, despite the extreme volatility in the public markets. We look forward to the core we've IPO, we look forward to some of our other companies and all the exciting developments within them. Thank you.

Mark Klein: Feel free to reach out to us through the IR portal if there's any further questions or any follow-ups you might have. Again, thank everybody very much. Thank you very much.

Brian McKenna: And for your ongoing support feel free to reach out to us through the IR portal.

Brian McKenna: If there is any further questions or any follow ups you might have again, thank you everybody very much.

Melissa: Once again, that does conclude today's conference.

Brian McKenna: Yeah.

Brian McKenna: Thank you very much once again that does conclude today's conference you may now disconnect.

Brian McKenna: Okay.

Brian McKenna: Okay.

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