HEALTH EVOLUTION PARTNERS GROWTH FUND

The Health Evolution Partners Growth and Buyout Fund is a $500 million fund that invests in late stage companies. Our strategies for growth and late stage investing include:

• Invest in successful businesses that have the potential to become market leaders

• Focus investments on companies that improve value to end users

• Partner with strong management teams to enhance company growth and value

• Work with purchasers and industry leaders to accelerate  uptake of portfolio company products, services and solutions

Health Evolution Partners is making growth and late stage investments into companies that are EBITDA positive, or that have a demonstrated pathway to EBITDA growth. Our investments take the form of expansion capital, recapitalizations, buyouts, spin-offs and other forms of late stage financing. We focus on companies with sustainable competitive advantages in the health care economy. Our target investments have strong management teams, proprietary health care technology and processes, and desire an active partner to help build value.

We are selective in our investments so we can spend considerable time working with portfolio companies. Consequently, we prefer equity investments with initial commitments in the range of $20 million to $80 million.

HEALTH EVOLUTION PARTNERS INNOVATION NETWORK

Health Evolution Partners has developed the Health Evolution Partners Innovation Network (HEPIN) to foster a thriving ecosystem of health care innovators and early stage companies. HEPIN is a $200 million fund supported by a partnership between Health Evolution Partners and a small number of early stage venture capital funds. Partner funds work with Health Evolution Partners to move innovations from idea to proof-of-concept, and to develop leading management teams of the future. Health Evolution Partners invests directly into portfolio companies as well as investing into partnered venture funds.

HEPIN Direct Investments

Health Evolution Partners’ direct investments in portfolio companies take the form of lead investments, co-investments with HEPIN fund partners and occasional syndication with other funds. Health Evolution Partners seeks opportunities in healthcare services, technology, diagnostics and medical devices that have the potential to establish a leadership position in a niche market, become the foundation for a solution platform, or offer an innovation or disruption that can be integrated into an existing solution platform. Our strategies for investing include:

• Invest where significant engineering, science and regulatory risk does not exist; companies should have commercial contracts and validation of return on investment

• Invest with strong entrepreneurs capable of leading innovation and building durable business models

• Invest in large markets with favorable growth trends and supportive regulatory and reimbursement environments

• Participate when we can add significant value and impact the pace of market adoption

• Play an active role taking board seats with all lead investments and at least board observation rights with co-investments

• Favor opportunities where our broad capital platform can be leveraged to accelerate growth opportunities and build our ownership over time

Based on our selective strategy in making direct investments, we expect to make initial equity investments in the $5 million to $10 million range with reserves to maintain our pro rata ownership.

Health Evolution Partners has made direct investments in the following portfolio companies:

Mauna Kea Technologies, headquartered in Paris, France, is a commercial stage medical technology company that has developed a proprietary platform technology for real time in vivo and in situ microscopic cellular imaging, enabling physicians to visualize, diagnose and treat pathologies that cannot be seen using other imaging techniques. Marketed as ‘Cellvizio’, this technology is based on confocal laser microscopy miniaturized as a series of flexible, fiber optic miniprobes which can be used during any endoscopic or catheter-based procedure. With over 80 system installations to date, Mauna Kea Technologies has initially targeted gastroenterology and pulmonology, as well as the small animal imaging market; however, the opportunities for Cellvizio as an imaging modality for “optical biopsies” extend to a broad range of clinical applications.

Prematics, Inc. is an innovative provider of turn-key, fully managed electronic prescribing services that remove common barriers to physician adoption. The Prematics solution, ScriptTone, operates on the company’s proprietary end-to-end network and enables physicians to choose the most clinically appropriate and cost-effective prescriptions. Prematics’ exceptional management team is led by Kevin Hutchinson, Chief Executive Officer, and James Bradley, Chairman of the Board. Prior to joining Prematics, Mr. Hutchinson was the founding president and CEO of SureScripts, considered the gold standard for pharmacy interoperability and the routing of electronic prescriptions. Mr. Bradley was the founding CEO of RxHub, a health care technology company formed by the nation’s three largest pharmacy benefit managers.