A closed-end managed investment business has exposure to a number of privately owned companies, and another portfolio holding could go public, giving it a boost.
What Happened: Nextdoor and Khosla Ventures Acquisition II Co (NASDAQ: KVSB) announced a SPAC merger, valuing the company at $4.3 billion.
SuRo Capital Corp (NASDAQ: SSSS), one of Nextdoor’s early supporters, invested $10 million in the company in 2019 as part of a Series F fundraising round valued at $2.1 billion. Based on today’s deal, SuRo Capital’s investment has doubled in two years.
Associated Link: Palantir’s IPO might be a big winner for Sutter Rock Capital.
The Reason for Its Importance: With the IPOs of Coursera Inc (NYSE: COUR) and Palantir Technologies Inc, SuRo Capital has had numerous important recent monetization events (NYSE: PLTR).
Rover, a portfolio firm, is also going public through SPAC.
The company had a net asset value of $18.01 per share at the end of the first quarter, compared to $15.14 at the end of 2020 and $10.22 in the first quarter of 2020.
Nextdoor is the third-largest holding in the company’s portfolio, which consists of 32 investments. Coursera is the business’s largest ownership, and it comes after the corporation sold its Palantir stake in March.
The company’s IPOs and SPAC acquisitions are monetizable events that may assist reduce the gap between share price and net asset value.
SSSS Price Movement: SunRo Capital’s stock was up 1.80% to $13.55 at the time of publication on Tuesday.
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