SuRo Capital's Q1 2025: Unpacking Contradictions on Shareholder Returns, OpenAI Valuation, and Investment Strategy

Return of capital to shareholders, OpenAI's valuation markup, investment strategy and focus, dividend strategy and share repurchase program are the key contradictions discussed in SuRo Capital's latest 2025Q1 earnings call.



Market Conditions and Portfolio Valuations:
- SuRo Capital Corp ended Q1 2025 with a net asset value (NAV) of $156.8 million or $6.66 per share.
- The decline in NAV was primarily due to a $0.16 per share decrease in net investment loss, offset by unrealized appreciation.
- The challenging market environment, including public market declines, impacted portfolio company valuations.

OpenAI's Growth and Funding:
- OpenAI announced a $40 billion funding round at a $300 billion post-money valuation, doubling from its previous round.
- This reflects the company's growth, with weekly active users increasing to 500 million, and its systems now used by 10% of the global population.
- The funding round is a testament to investors' confidence in OpenAI's future prospects.

CoreWeave's IPO and Market Performance:
- CoreWeave completed a $1.5 billion IPO, achieving a valuation of $23 billion.
- Since the IPO, CoreWeave's stock price has increased by over 35%, outperforming broader market indices.
- The growth is attributed to CoreWeave's strategic position as an AI infrastructure provider, with contracts like the 5-year deal with OpenAI.

Plaid's Financing and Growth:
- SuRo Capital invested $5 billion in Plaid through a Sole Limited Partnership, marking the company's last private financing before going public.
- The investment was part of a $575 million round at a $6.1 billion post-money valuation.
- Plaid's growth is driven by its role as a leading fintech platform, supporting over 100 million users globally and partnerships with major financial institutions.