SSSS - SuRo Capital Q3 NAV seen falling as macro headwinds hit private public markets

SuRo Capital ( NASDAQ: SSSS ), a business development company that invests in growth-oriented private firms, is expecting its net asset value per share to be $7.55-8.05 in the third quarter, down from $9.24 in Q2 and $14.79 in the year-ago period, the company's chairman chief executive officer said Wednesday.

"As macroeconomic challenges persist, we expect continued acceleration in the repricing of private securities," SuRo Capital's Mark Klein warned.

But with a cash pile of ~$140.0M, "we believe we are well positioned to be opportunistic in evaluating new, late stage, high-growth companies at compelling valuations," he added.

During Q3, SuRo ( SSSS ) added XGroup Holdings to its portfolio and completed a follow-on investment in Orchard Technologies. Klein said that ongoing volatility in public and private market has prompted the BDC to remain wise in deploying capital.

SSSS held positions in 39 companies as of September 30, with the vast majority of those firms being privately held.

The BDC exited or received proceeds from six entities during the quarter. It made the most in Palantir Lending Trust for a $0.6M realized gain, but lost the most from Enjoy Technology for a $5.3M shortfall.

See why SA contributor Leo Imasuen believes the SPAC collapse bodes poorly for SuRo Capital .

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