Hello and welcome to SuRo 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 to ask questions at the end of the presentation. [Operator Instructions] I'll now turn the call over to Jackson Stone. Please go ahead.

Thank you for joining us on today's call. I'm joined today by the Chairman and Chief Executive Officer of SuRo 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.surocap.com under Investor Relations, Events and Presentations. Today's call is being recorded and broadcast live on our website, www.surocap.com. Replay information is included in our press release issued today. This call is the property of SuRo 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, 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 statements. 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. To obtain copies of SuRo Capital's latest SEC filings, please visit our website at www.surocap.com or the SEC's website at sec.gov. Now I would like to turn the call over to 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. We are excited to share the results of SuRo Capital's fourth quarter and fiscal year 2024. We're especially excited to welcome the many new participants on the call. With that in mind, we'll start with a quick history of SuRo 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 SuRo was founded, there were fewer than 100 unicorns. Today, there are roughly 1,500 unicorns, 50 decacorns and a handful of centacorns. Over this time period, we have owned a number of marquee technology companies, including Facebook, Twitter, Snaps, Spotify, Lyft, Dropbox, Palantir and Coursera, just to name a few. 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 and paid a total of approximately $9 per share in distributions. As with all BDCs, we are required to distribute functionally all of our net realized gains. Consistent with our past practices, we will be transparent and communicative about our dividend strategy. 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, Vast Data and at some point in time OpenAI. This is as large of 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…

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. 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 2 LP 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. 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. In November, we exited our position in Oklo following the expiration of our lockup restrictions. We received the Oklo public common stock following their successful merger with AltC Acquisition Corp, in which we invested approximately $250,000 in that SPAC sponsor. Upon the sale, we…

Thank you very much. [Operator Instructions] And we'll go ahead and take our first question from Brian McKenna at Citizens Bank. Please go ahead.

Thanks. Hope everyone is doing well. I know there's a lot to be excited about looking at the portfolio today, specifically related to some of the recent investments you made and then also just the pipeline for some of these IPOs. But NAV did decline 16% in 2024. So what's the internal base case expectation for NAV 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?

Thanks, Brian. Appreciate it. 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's some math you could do anyhow. If you look at where our current portfolio is marked, look at where the CoreWeave 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 end. The same with OpenAI as we did and 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. In respect to further markdowns in the portfolio, our largest and we've discussed it on this call and discussed it with investors has been Learneo. And we have marked Learneo broadly all the way down or close to where the preference is in the Learneo capital stack. And that's been the biggest weight on our portfolio on the downside. Hopefully that's helpful.

Thank you. Our next question is from Marvin Fong with BTIG. Please go ahead.

Great. Thanks for taking my questions. And your opening remarks are very comprehensive. So I thought I would just kind of ask on the capital structure. So you've issued a like amount of 6.5% notes, as you've repurchased the 6% notes. And now that you've repurchased your full authorization of the 6% notes, should you kind of think about your appetite for on the converge structure as basically set now or would you consider issuing additional notes on the 6.5% to increase your cash on hand and add to your investable assets? Thanks.

Thanks, Marvin. As you've noted, we have retired, 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 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. We're comfortable with our capitalization as it is right now.

Thank you very much. And we do have a follow-up question from Brian McKenna of Citizens. Please go ahead.

Okay, great. Thanks for the follow-up. 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 CoreWeave 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. Canva may come public by the end of the year. I think Liquid Death 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 CoreWeave. I think all else is sort of up to where markets are and 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 of an opportunity to come public.

Thank you. 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. 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 you everybody very much.

Thank you very much. Once again, that does conclude today's conference. You may now disconnect.