Neostellar Capital reported third-quarter 2026 net asset value of $334.7 million, or $12.64 per share, down from $13.44 at the end of the second quarter. The decline included a lower fair value for its WHOOP holding after recent secondary-market activity.

Chief Financial Officer Allison Green attributed the sequential NAV decline to three components:

• A $0.36-per-share decrease from net changes in unrealized appreciation.
• A $0.29-per-share decrease from net realized losses on portfolio investments.
• A $0.15-per-share decrease from net investment loss.

What changed under external management?

Neostellar completed its transition to an externally managed structure on July 15, following shareholder approval. Neostellar Advisors LLC became its investment adviser; former SuRo Capital Management team members and Magnetar Holdings jointly own the adviser.

Klein said the arrangement is intended to combine Neostellar's venture-backed investment experience with Magnetar's capabilities in credit, structured capital and AI infrastructure. The structure links the listed vehicle's venture mandate with Magnetar's broader financing capabilities.

How concentrated is the portfolio?

As of Sept. 30, WHOOP, OpenAI, VAST Data, TensorWave and Blink Health formed Neostellar's five largest positions. Together, they represented approximately 72% of the portfolio at fair value, while the 10 largest positions accounted for about 87%.

Green's thematic breakdown showed:

• Consumer goods and services, the largest theme: roughly 42% of portfolio value.
• AI infrastructure and applications: 36%.
• Software-as-a-service investments: about 9%.

That mix leaves quarterly NAV sensitive to valuation marks in a small group of holdings and to the prices available when Neostellar sells.

What do the AI investments show?

Klein highlighted investments across AI infrastructure and applications in OpenAI, CoreWeave, VAST Data, ClickHouse and TensorWave. He said Neostellar sees continued demand for computing, data management and analytics infrastructure as enterprise AI adoption expands.

Klein cited OpenAI's March financing, saying it involved $122 billion in committed capital at an $852 billion post-money valuation. He also cited Reuters reporting that OpenAI's annualized revenue run rate stood at nearly $50 billion in September.

Reports of a potential financing at a $1.25 trillion valuation did not enter Neostellar's Sept. 30 valuation because the transaction had not been officially confirmed.

Neostellar invested $9.5 million in ClickHouse during the second quarter. Klein said the database and real-time analytics provider raised $400 million in a January Series D and reported that its serverless cloud business had exceeded $250 million in annualized revenue run rate in May.

Neostellar also completed a $20 million commitment to TensorWave through a Magnetar-managed vehicle in the second quarter. TensorWave supplies AMD-powered cloud infrastructure for AI workloads and raised $350 million in a June Series B at a $1.55 billion post-money valuation, according to Klein.

Why did WHOOP's value fall, and can it be monetized?

WHOOP remained a significant Neostellar holding after years of appreciation in the investment. Klein said WHOOP announced a $575 million financing in March at a $10.1 billion valuation and reported more than 2.5 million members.

WHOOP also disclosed 103% year-over-year growth in 2025 bookings, a year-end bookings rate of $1.1 billion and positive operating cash flow during 2025. Neostellar reduced the position's fair value during the third quarter based on recent secondary activity.

Klein said the March financing valuation did not independently determine the fair value of the specific securities Neostellar owned. The company is exploring ways to reduce its WHOOP exposure over time, and WHOOP management knows Neostellar intends to monetize part of the investment.

Any sale's timing and size depend on available liquidity, pricing, restrictions and market conditions.

What did the exits release?

Realizations during the quarter produced mixed cash and accounting outcomes:

• Neostellar fully exited Learneo for $9.4 million, producing a realized loss of about $5.6 million.
• It exited Aventine Property Group through a roughly $31,000 distribution, generating a realized loss of about $2.5 million.
• It abandoned its Catona Climate investment, producing a $1.3 million realized loss.
• It sold 143,655 GrabAGun Digital Holdings shares at an average net price of $3.12, generating approximately $448,000 in proceeds and a realized gain of about $295,000.
• It received about $2 million in proceeds from CW Opportunity 2 LP, its CoreWeave-related special-purpose vehicle investment. The distribution included approximately $600,000 of returned capital and a $1.4 million realized gain, subject to potential adjustment for performance fees.

How much liquidity is available?

Neostellar ended the quarter with approximately $42.2 million in liquid assets, comprising $40.9 million in cash and $1.3 million in unrestricted public securities. It also held approximately $15.2 million in public securities subject to lockups or other sales restrictions.

The restricted group included the remaining CoreWeave-related holding and Lime shares that the company expects to become freely tradable in December.

How will Neostellar allocate capital?

Green said a portion of the cash will repay the company's 6.00% notes due Dec. 30, 2026. Klein told analysts that retiring the debt is “paramount” and said Neostellar intends to do so by year-end.

During the quarter, Neostellar received $20 million from a 6.5% redeemable promissory note issued to a Magnetar-affiliated entity. The note matures in three years and would be mandatorily redeemed through common-stock issuance following a qualifying equity financing of at least $230 million.

The board extended its discretionary share-repurchase program through Oct. 31, 2027, or until the company repurchases $64.3 million of common stock in aggregate. About $25 million remains available under the authorization.

Klein said the company would weigh repurchases against new investments, debt repayment and liquidity needs. He intends to deploy capital toward buybacks as portfolio monetizations create available capital, provided shares continue to trade at a substantial discount to NAV.

Neostellar Capital, identified as NSLR, operates as a business development company targeting growing, late-stage, venture-capital-backed private companies. The firm was founded in 2010 and is based in San Francisco, California.