Sunrun

Sunrun, Inc.

2.7% of portfolio as of 6/30/17

Sunrun offers "solar-as-a-service" to residential customers. The company enables homeowners to benefit from the lower cost of solar electricity without the upfront expense of purchasing and installing the solar hardware. With third-party owned installation, a homeowner doesn't pay for the installation, but rather pays a monthly lease payment to the owner, such as Sunrun.

Public competitor SolarCity (NASDAQ: SCTY) has demonstrated that the TPO (third-party ownership) solar business can offer solid growth and predictable, recurring revenue. Until relatively recently, Sunrun had historically taken a more conservative approach to building its business, shunning an in-house installation force. In early 2014, the company acquired the residential division of REC Solar, adding an experienced team of residential solar sales, design, and installation professionals.

We made our initial pre-IPO investment in Sunrun in 2013. Sunrun went public in August 2015. The 180-day lockup associated with the IPO has now expired and we continue to hold Sunrun common stock in the portfolio.