Market Overview

GSV Capital Corp. Reports Fourth Quarter and Fiscal Year 2018 Financial Results


Net Asset Value of $9.89 per Share as of December 31, 2018

GSV Capital Transitions to an Internally Managed Fund Structure

WOODSIDE, Calif., March 14, 2019 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (NASDAQ:GSVC) today announced financial results for the quarter and fiscal year ended December 31, 2018.  Net assets totaled approximately $195.4 million, or $9.89 per share, at December 31, 2018, as compared to $9.64 per share at December 31, 2017.

"The companies in our portfolio continue to demonstrate strong growth and are well positioned to capture the current market momentum," said Mark Klein, President and Chief Executive Officer of GSV Capital. "We will continue to be opportunistic and disciplined with our current cash and liquid assets as we move into 2019."

GSV Capital also announced today that the Company's Board of Directors has agreed with GSV Asset Management, LLC. to transition GSV Capital to an internally managed fund structure. This builds on recent operational initiatives to proactively enhance shareholder value, including lowering the Company's fee structure, executing and extending a share repurchase program, and reducing operating expenses.

"The transition to internally manage GSV Capital is consistent with our commitment to increase shareholder value through shareholder initiatives," Klein stated. "We believe this initiative will create tangible near-term and long-term value for shareholders."

"On behalf of GSV Capital, I would like to thank Michael Moe, who has served as the Chairman for nearly eight years, for his vision and leadership since its founding," Klein continued.  "Michael and I launched GSV Capital as a unique fund designed to give public growth investors access to rapidly growing VC-backed private companies, including Facebook, Spotify, Twitter, Palantir, Dropbox, Lyft and others. The investment portfolio we have developed validates this vision and positions GSV Capital for long-term success."

"It has been a privilege to serve as Chairman of GSV Capital for nearly eight years, and I am incredibly proud of what the team has accomplished," said Michael Moe, CEO of GSV Asset Management, LLC.  "GSV Capital is the first listed vehicle connecting public investors to the growth and value creation taking place in the private marketplace and I am confident that the Company's opportunity set today is stronger than it ever has been."

Investment Portfolio as of December 31, 2018

At December 31, 2018, GSV Capital held positions in 26 portfolio companies with an aggregate fair value of approximately $198.8 million. As a result of the Company's continued strategy to increase the size of its investments in individual portfolio companies, GSV Capital's investment portfolio has become more concentrated  around its top positions. For example, the Company's top five portfolio company investments accounted for 59.0% of the total portfolio at fair value as of December 31, 2018, compared to 52.4% as of December 31, 2017. GSV Capital's portfolio investments do not include the Company's investments in treasuries.

Top Five Investments at December 31, 2018

$ in millions Fair Value  % of Total Portfolio Investments
Palantir Technologies, Inc. $ 34.1   17.1 %
Spotify Technology S. A.   26.7   13.4 %
Coursera, Inc.   23.1   11.6 %
Dropbox, Inc.   17.9   9.0 %
Lyft, Inc.   15.6   7.9 %
Total $ 117.4   59.0 %

Fourth Quarter 2018 Portfolio Investment Activity

During the three months ended December 31, 2018, GSV Capital made the following new investments:

Portfolio Company   Investment   Transaction Date   Gross Payments
(in millions)
NestGSV, Inc.   Convertible Promissory Note   12/31/2018     $0.3, Inc.   Common Stock   12/27/2018     $2.3, Inc.   Common Stock   12/19/2018     $1.4    

Subsequent Portfolio Investment Activity

Subsequent to year-end, GSV Capital made the following new investment:

Portfolio Company   Investment   Transaction Date   Gross Payments
(in millions)
Neutron Holdings, Inc. (d/b/a Lime)   Preferred shares, Series D   1/25/2019       $10.0    

Fourth Quarter 2018 Financial Results

  Quarter Ended
December 31, 2018
Quarter Ended
December 31, 2017
$ in millions per share $ in millions per share
Net investment income/(loss) $ 1.7   $ 0.08   $ (3.6 ) $ (0.17 )
Net realized gain on investments   0.1     0.01     25.2     1.18  
Net change in unrealized appreciation of investments, net of tax effect(1)   (17.0 )   (0.86 )   (24.2 )   (1.13 )
Net decrease in net assets resulting from operations - basic(3) $ (15.2 ) $ (0.77 ) $ (2.5 ) $ (0.12 )
Repurchase of common stock(2)   (2.8 )   0.08     (2.1 )   0.07  
Increase/(decrease) in net asset value(3) $ (18.0 ) $ (0.69 ) $ (4.6 ) $ (0.05 )


(1)   Includes related net tax benefit of $5.5 million and $2.7 million for the quarters ended December 31, 2018 and 2017, respectively.
(2)   During the quarters ended December 31, 2018 and 2017, the Company repurchased 412,308 and 360,549 shares of GSV Capital common stock, respectively, for approximately $2.8 million and $2.1 million, respectively, in cash under its Share Repurchase Program. The use of cash in connection with the repurchases decreased net asset value as of period end; however, the reduction in shares outstanding as of period end resulted in an increase in the net asset value per share.
(3)   Total may not sum, due to rounding.

Weighted-average common basic shares outstanding were approximately 19.9 million and 21.3 million for the quarters ended December 31, 2018 and 2017, respectively.

Fiscal Year 2018 Financial Results

  Fiscal Year Ended
December 31, 2018
Fiscal Year Ended
December 31, 2017
 $ in millions per share $ in millions per share
Net investment loss $ (7.6 ) $ (0.37 ) $ (20.9 ) $ (0.95 )
Net realized gain/(loss)   (7.8 )   (0.38 )   0.9     0.04  
Net change in unrealized appreciation of investments   9.6     0.47     34.8     1.59  
Adjustment to provision for taxes on net unrealized appreciation/depreciation of investments   6.7     0.33  
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