Bio Crossroads VC INlifesciences cincytech inprs lillypad pappasventures

@Bio. Crossroads #VC #INlifesciences @cincy_tech @inprs @lillypad @pappasventures @IIB @osmo 1962

Indiana’s Life Sciences Capital Market Successes June 27, 2017

David L. Johnson President and CEO Bio. Crossroads

Indiana Fund of Funds Performance and Outlook Jim Greffet, Senior Adviser, Transactions, Lilly Research Labs Bo Ramsey, Deputy Chief Investment Officer, Indiana Public Retirement System John Rice, Ph. D. , Director, Life Sciences, Cincy. Tech LLC Rich Reynolds, Vice President, Co-Investments, Alp. Invest MODERATOR: David L. Johnson, President & CEO, Central Indiana Corporate Partnership and Bio. Crossroads

Healthcare Buyouts/Co-Investment Trends Sid Murdeshwar, Principle, Co-Investments, Alp. Invest Rich Reynolds, Vice President, Co-Investments, Alp. Invest MODERATOR: Bo Ramsey, Deputy Chief Investment Officer, Indiana Public Retirement System

Alp. Invest Partners Introduction and Overview of Healthcare Co-Investments June 27, 2017 For Exclusive, Confidential Use and May Not be Reproduced or Redistributed Without Consent

Trade Secret and Strictly Confidential Notice to Recipients THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. This document has been prepared by Alp. Invest Partners B. V. (together with its controlled affiliates, “Alp. Invest”) and is not intended to be (and may not be relied on in any manner as) legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to buy any securities of any investment product or any investment advisory service, including any limited partnership or comparable limited liability equity interests in any fund, managed account or other similar investment vehicle or product sponsored by Alp. Invest (each, a “Fund”). 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Nothing herein should be interpreted or used in any manner as investment advice. The information provided about these portfolio investments is intended to be illustrative, and is not intended to be used as an indication of the current or future performance of Alp. Invest’s portfolio investments. AN INVESTMENT IN A FUND ENTAILS A HIGH DEGREE OF RISK, INCLUDING THE RISK OF LOSS. There is no assurance that a Fund’s investment objective will be achieved or that investors will receive a return on their capital. The recipient must consult its own legal, accounting and tax advisors as to the legal, business, tax and related matters concerning the information contained in this document in order to make an independent determination and consequences of a potential investment in a Fund, including federal, state, local and foreign tax consequences. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS OR A GUARANTEE OF FUTURE RETURNS. The performance of any portfolio investments discussed in this document is not necessarily indicative of the performance of any other of Alp. Invest’s portfolio investments, and you should not assume that investments in the future will be profitable or will equal the performance of past portfolio investments. Investors should consider the content of this document in conjunction with investment fund quarterly reports, financial statements and other disclosures regarding the valuations and performance of the specific investments discussed herein. DO NOT RELY ON ANY OPINIONS, PREDICTIONS, PROJECTIONS OR FORWARD LOOKING STATEMENTS CONTAINED HEREIN. Certain information contained in this document constitutes “forward-looking statements” that are inherently unreliable and actual events or results may differ materially from those reflected or contemplated herein. None of Alp. Invest or any of its representatives makes any assurance as to the accuracy of those predictions or forward looking statements. Alp. Invest expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. The views and opinions are those of Alp. Invest as of the date hereof and are subject to change based on prevailing market and economic conditions and will not be updated or supplemented. EXTERNAL SOURCES. Certain information contained herein has been obtained from third-party sources. Although Alp. Invest believes the information from such sources to be reliable, Alp. Invest makes no representation as to its accuracy or completeness. THIS DOCUMENT IS NOT INTENDED FOR GENERAL DISTRIBUTION AND IT MAY NOT BE COPIED, QUOTED OR REFERENCED WITHOUT ALPINVEST’S PRIOR WRITTEN CONSENT. Alp. Invest is part of The Carlyle Group (“Carlyle”). An information barrier has been erected between Alp. Invest and the rest of Carlyle that restricts certain information from being shared, including information regarding Alp. Invest portfolio investment decisions. All investment programs managed by Alp. Invest are intended to operate in accordance with the information barrier protocols and supplemental compliance procedures specific to Carlyle’s Investment Solutions business segment of which Alp. Invest is a part. Alp. Invest Partners B. V. is registered as an investment adviser with the U. S. Securities and Exchange Commission (the “SEC”) and is included in the public register kept by the Dutch Authority for the Financial Markets (Autoriteit financiële markten), in accordance with section 1: 107 of the Dutch Act on Financial Supervision (Wet op het financieel toezicht), as holder of a license to manage alternative investment funds under license number 15001833. Where applicable, this document has been distributed by TCG Securities L. L. C. , a limited purpose broker/dealer affiliated with Carlyle which is registered with the SEC and is member of the Financial Industry Regulatory Authority. Related financial products and services are only available to investors deemed to be “qualified purchasers” as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended, and “accredited investors” as defined in Regulation D of the 1933 Securities Act, as amended.

Trade Secret and Strictly Confidential Indiana Fund-of-Funds History § 2003 – Mike Arpey and David Johnson (Bio. Crossroads) raised the Indiana Future Fund § 2009 – Mike Arpey, in collaboration with Indiana’s Life Sciences stakeholders, designed the INext life sciences fund-of-funds program § 2006 and 2012 – INPRS designed the Indiana Investment Fund I and II (IIF-I and IIF-II) to make commitments to Indiana-based private equity funds, and to make direct and coinvestments in companies with an Indiana nexus § The IIF-II program was the first program managed from inception by Alp. Invest investment professionals, and the Indianapolis office is staffed with three investment professionals to help drive local execution. The IIF-II program is still being deployed § IIF-II is a 2012 Vintage with total commitment of $150 million that is split between fund investments and co-investments: § Fund-of-Funds: $50 -$70 million allocated to Indiana-based private equity fund managers § Co-Investments: $80 -$100 million allocated to co-investments. Companies must be headquartered in, willing to relocate to, or have a significant operational footprint in the state

Trade Secret and Strictly Confidential Alp. Invest is a Leading Player in the Global Co-Investment Market +17 Highly Experienced Co-Investment Platform with Strong Reputation years of Co-Investment experience Differentiated Strategy of Proactive Sourcing and a Selective Investment Approach 23 dedicated Co-Investment professionals +150 invites per annum 1 from top tier GPs at no fee/no carry +210 Equity Co-Investments completed since 2000 ~10% 3 Compelling Deal Setting Investment Strategy with Multiple Levers GPs partnered with +$550 m invested capital per annum 1 Large Buyout 27% Middle Market 73% Syndicated 20% 1 +95 Volume by Market Segment 2 Co-Sponsor 80% Focused on Clear Deal Attributes of completed Co-Investments “closing rate” selecting the best opportunities out of the invite pool Volume by Deal Type 2 Focused on Co. Sponsor Middle Market Transactions $8. 9 b 2 Leading and Sustainable Business 4 Conservative Valuation and Capital Structure Information as of March 31, 2017 and since strategy’s inception, unless otherwise noted. Employee data as of April 2017. 1. Average number per annum over 2013 -2016. 2. As of December 31, 2016 and based on total invitation amounts (inclusive of selected and declined deals) from 2012 - 2016. There is no assurance that Alp. Invest will continue to see similar levels of investment opportunities or execute on any particular investment opportunity in the future.

Trade Secret and Strictly Confidential Alp. Invest Approach to Healthcare Co-Investments Alp. Invest has a closing rate ~15% of sourced invitations for healthcare companies Cumulative Healthcare Deal Flow (2002 – Present) ~$9. 0 bn / >200 Sourced Invitations ~$4. 5 bn Capital Invested by Healthcare Sector Med Devices / Supplies 21% Healthcare Services and Pharmaceuticals Providers 48% 32% Advanced Diligence 1 ~15% “closing rate” ~$1. 4 B Invested Representative Companies with Indiana Presence Source: Alp. Invest. Information as of December 31, 2016. All non-USD amounts have been converted to USD. For illustrative purposes only. References to a particular investment should not be considered a recommendation of any security or investment or an indication that any investment is successful. There can be no assurance that Alp. Invest will be able to make similar investments in the future. 1. Advanced diligence represents invites where a deal team was staffed to conduct a comprehensive analysis on the transaction.

Trade Secret and Strictly Confidential Case Study – Qo. L / Genoa Company Overview § Qo. L/Genoa is an operator of specialty pharmacies located within mental health clinics throughout the U. S. and 30 locations in Indiana § Patient base typically suffers from serious mental health conditions such as schizophrenia and acute bipolar disorder § The Company provides a compelling value proposition to all of its constituents as patients benefit from the convenience of an on-site pharmacy, clinicians benefit from improved outcomes, and payors benefit from improved medication adherence § The acquisition of Qo. L was completed in Q 4 -2013 and in Q 32014 Nautic and Alp. Invest supported the Company’s acquisition of Genoa Healthcare, which at the time was Qo. L’s largest competitor Deal Origination and Process § Co-sponsor co-investment alongside Nautic, a GP with whom our relationship began in 2006 through a secondary transaction. Since then, Alp. Invest has been a strategic LP for Nautic, facilitating successful fundraises as a result of our early and sizeable fund commitments § Nautic realized that there were specialized risks that investors needed to gain comfort with, most notably reimbursement rate pressure. As such, Nautic was looking for a co-investment partner with healthcare experience, who was willing to spend time on granular drug-level and payor-level due diligence, and could understand the nuances of the specialty pharma sector Investment Thesis and Results Compelling deal setting: § Qualified GP with healthcare as a key sector focus and strong healthcare track record. Nautic had also participated in the initial auction of Genoa (which they lost) and so had strong industry knowledge Leading and sustainable business: § Qo. L was one of the largest players in the industry with Genoa being the only other entity of scale in the industry § Market for on-site pharmacies within mental health clinics was underpenetrated at ~40%, allowing for meaningful de novo growth opportunity Investment thesis with multiple levers : § Organic growth driven by maturation of recently opened pharmacies and de novo pharmacy openings in light of unpenetrated market and growth driven by trend away from inpatient § Numerous M&A opportunities given industry fragmentation § Opportunity to drive purchasing savings through improved procurement and optimizing primary wholesaler agreement and expanding direct purchasing from manufacturers Prudent valuation and capital structure: § Qo. L purchase price was full but embedded growth from maturing pharmacies quickly brought down entry multiple. Genoa purchase resulted in meaningful cost synergies resulting in attractive blended entry multiple Case studies are intended to provide examples of the types of transactions Alp. Invest pursues and do not represent all investments made Alp. Invest or the outcomes achieved. Investment rationales and other considerations are based on Alp. Invest’s internal analysis and views as of the date of the investment commitment and will not be updated. References to a particular investment should not be considered a recommendation of any security or investment. There can be no assurance that Alp. Invest will be able to invest in similar opportunities in the future.

Trade Secret and Strictly Confidential Case Study – ATI Company Overview § ATI was founded in 1996 and provides physical therapy to patients suffering from injuries, with a focus on the workers compensation market. The Company operates 500+ clinics throughout sixteen states and has ~50 in the state of Indiana § The Company operates in an outpatient setting in which the Company’s qualified physicians will rehabilitate patients under the guidance of the patients’ physicians § ATI primarily generates revenue through three reimbursement categories: worker’s compensation, insurance companies and Medicaid/Medicare Deal Origination and Process § § Alp. Invest has invested in ATI’s mezzanine securities several times over the years: – In 2006 to support a dividend recapitalization by KRG – In 2012 to support KRG’s re-acquisition of ATI (KRG had sold the Company to GTCR in 2010) – In 2015 invested on behalf of IIF-II to upsize the mezzanine tranche to support follow-on acquisitions Alp. Invest’s relationship with both KRG and Crescent (lead mezzanine provider in 2012) allowed for multiple successful investments in ATI and Alp. Invest’s familiarity with the Company allowed for rigorous due diligence Investment Thesis and Results Compelling deal setting: § Qualified equity GP that had intimate familiarity with the Company. For the transaction in 2012, KRG was re-partnering with a management team that they knew well and thought very highly of. Crescent is a long standing mezzanine relationship with whom Alp. Invest has completed multiple transactions Leading and sustainable business: § Geographic density drove strong payor and referral relationships and Company’s focus on worker’s compensation segment (complex billing process) drove entrenched payor relationships § Positive underlying market tailwinds driven by continued evolution towards lower-cost outpatient care Investment strategy with multiple levers: § Attractive ROI on de-novo openings and highly qualified management team with experience in identifying attractive locations and executing upon a rollout strategy § Highly fragmented industry driving tangible M&A opportunity and ability to acquire smaller players at accretive multiples Prudent valuation and capital structure: § Strong, stable cash flows and an attractive margin profile driving deleveraging and downside protection Case studies are intended to provide examples of the types of transactions Alp. Invest pursues and do not represent all investments made Alp. Invest or the outcomes achieved. Investment rationales and other considerations are based on Alp. Invest’s internal analysis and views as of the date of the investment commitment and will not be updated. References to a particular investment should not be considered a recommendation of any security or investment. There can be no assurance that Alp. Invest will be able to invest in similar opportunities in the future.

Bio. Storage Investment and Resulting Success Oscar Moralez, Founder & Managing Director, Vision. Tech Partners David Mann, Managing Partner & Co-Founder, Spring Mill Venture Partners MODERATOR Kylie Veleta, Reporter, Inside Indiana Business

Co. Lucid Investment and Resulting Success Jayson Punwani, Senior Principal, Pappas Ventures Jim Greffet, Senior Adviser, Transactions, Lilly Research Labs MODERATOR: Kylie Veleta, Reporter, Inside Indiana Business

@Bio. Crossroads #VC #INlifesciences @cincy_tech @inprs @lillypad @pappasventures @IIB @osmo 1962