Captona Takes Preferred Equity Stake in Sunrun
The New York investment firm's deal supports Sunrun's residential solar and storage project financing across more than 20 states.
Updated on Nov. 10, 2026 in Corporate Finance
Captona announced a preferred equity investment in Sunrun to support its project financing needs. The investment supports 74 MW of solar, 110 MWh of battery storage and 9,400 residential installations in more than 20 states.
Why it matters
Preferred equity gives Sunrun flexible capital over a defined term, which can help fund residential solar and storage projects at scale. The move reflects continued reliance on alternative financing structures in the rooftop solar sector.
The investment supports 74 MW of solar and 110 MWh of battery storage across 9,400 residential installations. Sunrun reported 51.7% revenue growth over the same quarter in 2025, but the deal's dollar value and return terms were not disclosed.
The players
Captona
A New York-based investment firm that makes preferred equity investments in clean energy companies and projects.
Sunrun
A residential solar and storage company that finances rooftop installations and has historically relied on debt and tax equity.
The details
Captona, a New York-based investment firm, made the preferred equity investment in Sunrun to support its residential project financing. Sunrun has historically raised capital through a mix of traditional debt and tax equity, and this deal adds a preferred equity layer. Captona previously made a similar preferred equity transaction with Nexamp that supports 55 MW of solar and 5 MWh of storage across 10 projects in four states.
Timeline
Oct. 2026: Captona's Nexamp preferred equity investment was first announced.
Q3 2026: Sunrun reported 51.7% revenue growth in its quarterly earnings.
Nov. 10, 2026: Captona and Sunrun's preferred equity partnership was announced.
Market Dynamics
Captona's Nexamp preferred equity deal set the pattern for this Sunrun investment, which extends the same financing approach from community solar developers to a residential installer. The move reflects how distributed solar and storage companies continue to draw capital through structured equity rather than only traditional debt and tax equity.
Preferred equity sits between debt and common stock, so holders of this type of security are paid before common shareholders but typically do not share in upside the same way. Retail investors in Sunrun's common stock should note that a preferred stake from Captona could affect how future returns are distributed.
The takeaway
Structured equity deals like Captona's can give growing clean energy companies capital without adding traditional debt. Investors should watch how such deals affect the return priority of common shares over time.
Further reading
For more on how companies raise capital, see Corporate Finance.
