headwinds-schmedwinds
There’s real policy whiplash across climate and energy markets right now. Incentives have been rolled back, trade and capital flows are tighter, and sentiment has shifted. It’s a tough environment to build in—classic investor headwinds.
When we raised Fund II in 2021, conditions were very different: capital was abundant, talent was pouring in, and policy was supportive. Even at the peak of the market our thesis remained simple: Companies that are cheaper, faster, or better and that create clear customer ROI can grow in any incentive environment. That premise is now being tested.
Despite a complete reversal of US policy on solar, wind, EVs and hydrogen, several of our strongest performers operate squarely in those sectors. King Energy, which installs and operates commercial rooftop solar, doubled last year while achieving EBITDA positivity. Clir, whose software optimizes renewable power generation primarily in wind, closed one of its strongest quarters in Q4. SWTCH continues advancing toward category leadership with over 20,000 chargers amid a field of struggling EV charging providers. Hyfluence doubled the number of contracted hydrogen refuelling stations two years in a row.
These companies aren’t riding subsidies—they’re providing cost effective solutions to fundamental, urgent problems. When budgets tighten, ROI matters more, not less. Headwinds don’t eliminate demand; they reveal which businesses are built on durable fundamentals.
Tough markets are uncomfortable, but clarifying. If companies can grow now, their long-term position is likely stronger than it appears. We remain long on climate because the underlying economics make sense, and they're getting better... which has real value, especially when conditions get harder.
