SuRo Capital Could Be On Watch With Nextdoor Stake: What Investors Should Know

A closed-end management investment company offers exposure to several privately held companies, and it could get a bump with another portfolio holding going public. 

What Happened: Nextdoor announced a SPAC merger with Khosla Ventures Acquisition II Co KVSB valuing the company at $4.3 billion.

One of the early backers of Nextdoor is SuRo Capital Corp SSSS, who invested $10 million in the company in 2019 as part of a Series F raised funding at a $2.1 billion valuation. In two years, the investment for SuRo Capital doubled based on today’s deal.

Related Link: Sutter Rock Capital Could Be Big Winner From Palantir IPO 

Why It’s Important: SuRo Capital has had several notable recent monetizing events with the IPOs of Coursera Inc COUR and Palantir Technologies Inc PLTR.

Portfolio company Rover is also going public via SPAC.

The company ended the first quarter with a net asset value of $18.01 per share, compared to $15.14 at the end of 2020 and $10.22 in the first quarter of 2020.

The company’s portfolio includes investments in 32 holdings with Nextdoor representing the third-largest position. Coursera is the largest holding and comes after the company liquidated its position in Palantir in March.

The IPOs and SPAC deals represent monetizable events for the company, which could help close the gap between the share price and net asset value.

SSSS Price Action: Shares of SunRo Capital are up 1.80% to $13.55 on Tuesday at publication.

See also: HOW TO BUY NEXTDOOR IPO STOCK