Market Overview

GSV Capital Corp. Reports Third Quarter 2017 Financial Results

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WOODSIDE, Calif., Nov. 08, 2017 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (NASDAQ:GSVC) today announced financial results for the quarter ended September 30, 2017.  Net assets totaled approximately $209.4 million, or $9.69 per share, at September 30, 2017, as compared to $9.11 per share at June 30, 2017 and $8.83 per share at March 31, 2017.

"GSV Capital remains focused on taking proactive steps to enhance shareholder value as we continue to concentrate the portfolio around blue chip venture backed companies with a line of sight to an IPO or liquidity event," said Michael Moe, Executive Chairman of GSV Capital.

"We are pleased that GSV Capital's common stock has appreciated approximately 52% since we reported second quarter earnings and announced a $5.0 million discretionary, open-market share repurchase program. But as of November 7th, it still traded at a roughly 39% discount to the $9.69 of net asset value per share we are reporting in the third quarter," Moe continued.  "Accordingly, we are pleased to report that our Board of Directors has authorized an expansion of the repurchase program to $10.0 million in aggregate amount of common stock and an extension through November 6, 2018, whichever comes first.  As of November 7th, we have repurchased approximately $4.5 million of common stock under the program."

Investment Portfolio as of September 30, 2017

At September 30, 2017, GSV Capital held positions in 37 portfolio companies with an aggregate fair value of approximately $289.8 million.  Excluding U.S. Treasuries, the Company's top five portfolio company investments accounted for 47.8% of the total portfolio at fair value.  Reflective of the Company's continued strategy to consolidate the portfolio around top positions, at this time last year, the top ten portfolio company investments comprised approximately 55% of the Company's portfolio at fair value (excluding U.S. Treasuries).

Top Five Investments at September 30, 2017

       
$ in millions (rounded) Fair Value   % of Total
Portfolio
 
Palantir Technologies, Inc. $ 36.5   12.6  %
JAMF Holdings, Inc.   35.2   12.1  
Spotify Technology S.A.   32.3   11.1  
Coursera, Inc.   18.4   6.3  
Dropbox, Inc.   16.5   5.7  
Total (rounded) $ 138.9   47.8  %
           

Of the five key investment themes GSV Capital has identified in its portfolio as of September 30, 2017, Cloud Computing and Big Data is its largest commitment, accounting for 36.0% of the total portfolio (excluding U.S. Treasuries) at fair value. Education Technology represents 34.5% of the total portfolio (excluding U.S. Treasuries) at fair value, and Social Mobile, Marketplaces, and Sustainability represent 18.2%, 10.8% and 0.5% of the total portfolio (excluding U.S. Treasuries) at fair value, respectively.

Third Quarter 2017 Portfolio Investment Activity

During the nine months ended September 30, 2017, GSV Capital did not purchase any investments.

During the nine months ended September 30, 2017, GSV Capital sold shares in the following portfolio companies:

                   
          Average   Net   Realized
      Shares   Net Share   Proceeds   Gains(2)
Portfolio Company     Sold   Price (1)   (in millions)   (in millions)
                   
  Chegg, Inc.     400,600   $14.33   $5.7   $1.0
  Snap, Inc     260,416   $15.49   $4.0   <$0.1
                         
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) Realized gains (net) exclude any realized losses from portfolio investments that we wrote-off during the period, as discussed further in our quarterly report on Form 10-Q for the quarter ended September 30, 2017.

Subsequent to quarter-end, through November 8, 2017, GSV Capital sold shares in the following portfolio companies:

                   
          Average   Net   Realized
      Shares   Net Share   Proceeds   Gains
Portfolio Company     Sold   Price (1)   (in millions)   (in millions)
                   
  Chegg, Inc.     182,192   $15.69   $2.9   $0.7
  Spotify Technology S.A.     3,657   $3,800.00   $13.9   $8.7
                   
                   
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
 

Third Quarter 2017 Financial Results

     
  Quarter Ended
September 30, 2017
Quarter Ended
September 30, 2016
 

$ in millions
 

per share
 

$ in millions
 

per share
         
Net investment loss $ (6.6 ) $ (0.30 ) $ (4.2 ) $ (0.19 )
         
Net realized gain   1.0     0.05     2.7     0.12  
         
Net change in unrealized appreciation/(depreciation) of investments(1)   15.7     0.71     (0.7 )   (0.03 )
         
Net increase/(decrease) in net assets resulting from operations - basic $ 10.1   $ 0.46   $ (2.3 ) $ (0.10 )
         
Dividends distributed   -     -     (0.9 )   (0.0
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