Value to Direct Investors

All-at-once, the global healthcare industry is the most complex, chaotic, compelling
and dynamic market in the world.
A $3 trillion global industry, growing 16% annually, capitalizing itself
$13.8 million at a time through more than 9,000 negotiated transactions
in 6,000 companies into which, on average, $49 million of capital is
deployed over 6.2 years, yielding a Cash-on-Cash returns of 4.1x and
IRRs of 22.1% while generating 81% liquidity on invested capital through
892 Exit events, of which 87% are M&A.
HealthiosXchange is the premier capital marketplace dedicated exclusively to the
global healthcare industry. By aggregating 6,000 Emerging Growth healthcare
companies in (37) countries together with 30,000 investors in (10) asset classes
and 2,000 strategic partners representing (46) market sectors IN A SINGLE
MARKET ENVIRONMENT, HealthiosXchange is fostering a capital markets
environment which perfectly reflects the industry it serves. We intend to
transform the manner in which capital is invested and value is realized
throughout the global healthcare industry, by serving the needs of:
1. The most promising Emerging Growth Companies in the world
2. The most successful Lead Investors
3. The most active Direct Investors
4. The most competitive Strategic Partners & Buyers
Healthios believes that institutional investment funds are critical to the success of
the global healthcare industry, as they represent the universe of Lead investors to
support the cycle of innovation, growth and value creation which is vital to the
industry.
At the same time, for an increasing population of alternative investors who are
implementing direct investment strategies to complement their existing fund
commitments, traditional fund structures are proving to be inefficient and
expensive. As these investors seek to complement their 2-and-20 fund strategies
with innovative investment approaches, Healthios believes there is an important
opportunity to restructure global capital flows for the benefit of those investors
and the global healthcare industry, itself.
The urgency to transform the global healthcare capital markets and the inspiration
for the HealthiosXchange is illustrated in studies published in 2012 by the
Kaufmann Foundation and in 2014 by Collier Capital and Prequin. Key elements of
those studies are as follows:

92% of investors expect to either Increase or Maintain their

allocations to Venture Capital and Private Equity over the long term

55% of Limited Partners with fund investments in healthcare

identified management fees as the principal motivation for a shift in
investment strategies. In addition, investors cited better control of
investments, greater transparency, and an opportunity to increase
diversification.

60% of North American investors (and more than 40% of foreign

investors) would pay higher carried interest in return for lower fund
management fees

77% of Limited Partners are Actively or Opportunistically

engaging in Direct Investments

24% of LPs allocate more than 10% of AUM to Direct

investment. By 2016, Direct investments will increase by 50% to
15% of AUM

86% of Limited Partners assert that Direct Investing yields either

Significantly Better or Slightly Better returns

87% of Limited Partners intend to Increase or Maintain their

Direct investment activity during the next five years

92% of Lead investors site timing, relationship and cost as the

principal objections to Direct investing

HealthiosXchange seeks to transform the manner in which capital is invested and

value is realized throughout the global healthcare industry. We intend to achieve
this goal by providing Direct investors with resources necessary to:
1. Achieve Higher Returns & IRR
2. Implement a Proprietary Rules-Based Investment Strategy
3. Achieve Total Control in their Direct investment Strategy
HealthiosXchange controls 100% of its transaction origination and focuses its
relationships directly on the Company, itself. These two factors permit
HealthiosXchange to posses extraordinary latitude over the investment process. As
a result, HealthiosXchange can enhance returns & IRR for direct investors by:
1. Offering all investments on a No Fee, No Carry basis.
2. Shortening the investment period by allowing capital to be
deployed directly into the Company only when it is needed
3. Accelerating liquidity by returning capital to investors
immediately upon the realization of that Companys exit
event

Every direct investment offered through HealthiosXchange conforms to a strict

Rule-Set comprised on three components:
1. Institutional Leadership: every direct investment must be led by an
institutional investor. This allows direct investors to benefit from
sophisticated, like-minded partners who are performing world-class
due diligence, pricing and structuring each investment, providing
critical leadership and governance and deploying capital to achieve
maximum economic returns.
2. Strategic Validation: a HealthiosXchange direct investment must
have confirmed its investment or strategic proposition with a strategic
buyer or industry expert. This engenders confidence among direct
investors in the ultimate exit event
3. Established Exit Pathway: every HealthiosXchange direct
investment is made in one of (46) market sectors. Within these
sectors, the Company will be member of a sector watch list or
Xchange Group which is overseen by the most active strategic
buyers in that market sector. The Xchange Group also includes that
Companys peers as well as Key Opinion Leaders and the most active
institutional investors in that market sector. During the investment
horizon, Xchange Groups will provide direct investors with optimal
access to their portfolio and extraordinary insights into its
performance.
All direct investments through HealthiosXchange are initiated through an
exclusive, 8-week investment evaluation process intended to provide
maximum control while nurturing confidence, conviction and commitment of
direct investors throughout the investment horizon. This investment process
is complemented by exclusive features during the transaction. Most
importantly, after the consummation of the transaction, every
HealthiosXchange direct investment is supported throughout the investment
horizon until the Exit is achieved.
HealthiosXchange is a global capital marketplace dedicated exclusively to the
healthcare industry. By aggregating IN A SINGLE MARKET ENVIRONMENT 6,000
Emerging Growth healthcare companies in (37) countries, along with 30,000
investors in (10) asset classes and 2,000 strategic partners representing (46)
market sectors, HealthiosXchange provides the broadest, most direct and efficient
access to the fastest growing, most dynamic markets in the world.
For direct investors, in particular, HealthiosXchange can enable greater outcomes
across their entire investment portfolio in three specific ways:
1. Higher Returns & IRR
2. Proprietary Rules-Based Investment Strategy
3. Total Control