A public listing often marks the end of an early investor's involvement with a company and can cost them long-term compounding. But, at Clear Creek, a company's move to public markets is just another step on the investment and company's journey.

Key Takeaways

• A portfolio company's public listing is a step on the investment journey, not the end of our engagement.
• Our lifecycle investing allows us to follow conviction from private to public markets and retain holdings as value compounds.
• Slow diligence gives us a thorough understanding of a company, its management, and its market before we decide to deploy capital.
• ZincFive shows how conviction can strengthen as new evidence confirms an original investment thesis while underlying trends accelerate.
• Close engagement with management gives us greater visibility into a company's progress and lets us add value where we can and where the company wants us to.

Our lifecycle investment strategy gives us the flexibility to invest across private and public markets, so we can stay with companies as they grow and scale instead of exiting just as they start building value or enter their next chapter as a publicly traded company.

We look for businesses in the water, energy, or food sectors approaching commercial inflection points: rising market demand, proven technology, capable management. ZincFive, a developer of nickel-zinc battery systems for reliable, energy-efficient power, is an example. The company develops enabling technology that overcomes structural constraints limiting the production or distribution of power at data centers.

But finding a company like ZincFive isn't something you stumble onto. It takes time.

Benefits of slow diligence

We began researching ZincFive around 2021 when we started conducting what we call our slow diligence. This allows us to look well beyond a firm's investor deck to gain a thorough understanding of the company, its management, and its market. If we like what we find, we'll invest and engage more closely with management. Often we will increase our commitment as the investment case develops.

Over time, we built conviction in ZincFive. We came to appreciate the quality of the firm's management and the potential of its technology. The company stood out in our work on the data center market, where rising demand for compute and cloud infrastructure was increasing the need for reliable and integrated power systems. This conviction prompted us to invest in the company's Series C and D funding rounds in 2023.

As a board observer, we gained a deeper understanding of the business, saw firsthand management's willingness to work with investors who could add value, and watched ZincFive's leadership team execute on its long-term plans. Board chair Tim Hysell and CEO Todd Higinbotham are a strong combo. Tim, the co-founder, is the big-picture visionary while Todd is focused on technology and operations. Tim's very good at telling the story. Todd's very good at operating and executing.

Unexpected impact of AI hyperscalers

Our investment thesis for ZincFive rested on two straightforward drivers: a battery replacement cycle and rising cloud computing demand. AI changed the math.

Hyperscalers needed more power, faster, and ZincFive's market expanded well beyond what either of us had modeled. Neither we nor the company saw it coming as quickly and in such a large manner. But because we'd stayed close and kept talking with management, we caught the shift early and added to our position.

Staying engaged on the public market

Growing confidence in ZincFive's leadership, technology and long-term business convinced us to co-lead the company's Series F funding round in December 2025. ZincFive has now gone public through a Nasdaq-listed SPAC. The company expects to trade under the ZFIV ticker once it has completed the de-SPAC process towards the end of 2026.

As a lifecycle investor with close access to management, we can see where we're needed most. We can pull in funding, technology, or specialist expertise from our ecosystem. We often ask ourselves, "how can we make one plus one equal seven?" We like management teams that welcome what we bring to the table.

Sure, there are times when our skill set is not needed. But there are also occasions when a company reaches a point where outside help can make a difference. Because we're at the table, we listen closely, and we take the time to understand a company's technology, we can spot things insiders might miss.

Ahead of ZincFive's Nasdaq listing, we have helped the company towards refinancing part of its capital structure. We drew on partners in our investment ecosystem to bring in transitional capital and lower ZincFive's cost of capital before going public.

Our relationship continues

Now that ZincFive is on the public market, we’re looking to continue our relationship with the company. We have developed processes for managing any material nonpublic information that allow us to remain engaged while investing across public and private markets.

We may no longer hold a seat on the ZincFive board due to changes in governance requirements as a publicly traded company. But we plan to stay close to the company by leveraging our deep relationship to speak directly with management, rather than through the firm's investor relations team.

For investors bound to a specific stage of ZincFive's growth or locked into a single market, the company's move onto the Nasdaq could have marked the end of the investor’s journey. For Clear Creek, it was a reason to lean in. Staying close to ZincFive, its management and its market gave us the confidence to grow our commitment and remain engaged as the company went public.

We're not finished. We're just entering the next chapter.

Clear Creek Investments is an innovation-focused, boutique asset management firm investing in enabling technologies across water, energy, and food. The information in this post is for informational purposes only and does not constitute investment advice or a solicitation to invest.

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