1. Diabetic Nephropathy
Diabetic Retinopathy
Hypercholesterolemia
Oral Mucositis
Gout
Acute Lymphocytic Leukemia
Bone Metastasis
Brain Cancer
Breast Cancer
Cervical Cancer
Chronic Lymphocytic Leukemia
Endometrial Cancer
Ewing Sarcoma
Gastric Cancer
Gastrointestinal Stromal Tumors
Head And Neck Cancer
Hodgkin Lymphoma
Kidney Cancer
Liver Cancer
Malignant Mesothelioma
Medullary Thyroid Cancer
Melanoma
Multiple Myeloma
Non-Hodgkin Lymphoma
Non-Small Cell Lung Cancer
Ovarian Cancer
Pancreatic Cancer
Testicular Cancer
Thyroid Cancer
Age Related Macular Degeneration
Keratoconjunctivitis sicca (Dry Eye)
Retinal Vein Occlusion
Acute Respiratory Distress
Syndrome
Sepsis
Staphylococcal Infections
Acute Coronary Syndrome
Angina Pectoris
Atrial Fibrillation
Coronary Artery Disease (CAD)
Critical Limb Ischemia
Hypertension
Pulmonary Arterial Hypertension
Acute Pain
Anxiety Disorders
Chronic Pain
Dementia
Diabetic Neuropathy
Obsessive-Compulsive Disorder
Osteoarthritis Pain
Parkinson's Disease
Post-Traumatic Stress Disorder
Restless Legs Syndrome
Schizophrenia
Traumatic Brain Injury
Liver Cirrhosis
Childhood Enuresis
Growth Hormone Disorders
Hyperparathyroidism
Hyperthyroidism
Guillain-Barre Syndrome
Cytomegalovirus
Fungal Infections
Gram-Negative Bacterial Infections
H1N1 Infection
Herpes Zoster
HIV-1 Infection
Human Papillomavirus Infections
Staphylococcus Aureus (MRSA)
Cardiovascular Devices
Prosthetic Heart Valve
Peripheral Vascular Devices
Cardiovascular Monitoring & Diagnostic Devices
Cardiovascular Surgery
Cardiac Rhythm Management
Cardiovascular Prosthetic Devices
Interventional Cardiology
Cardiac Assist Devices
Wound Care Management
Hospital Supplies
Syringes and Needles
Disposable Hospital & Surgical Supplies
Drug Delivery Devices
Inhalation Systems
Needle Free Injections
Infusion Systems
Diabetes Care Devices
Insulin Delivery & Glucose Monitoring
Ophthalmic Devices
Cataract Surgery Devices
Ophthalmic Diagnostic Equipment
Refractive Surgery Devices
ENT Devices
Hearing Implants
Diagnostic Devices
Electrosurgical Devices
Dental Equipment & Accessories
Diagnostic Imaging & MRI Systems
C/T Systems & Mammography Equipment
X-Ray & Ultrasound Systems
Nuclear Imaging Equipment
Contrast Media Injectors
Bone Densitometry
Anesthesia and Respiratory Devices
Anesthesia Machines & Disposables
Respiratory Devices & Disposables
Sleep Apnea Diagnostic Systems
Healthcare IT
Medical Imaging Information Systems
Nephrology and Urology Devices
Renal Dialysis Equipment
Orthopedic Devices
Orthobiologics & Arthroscopy
Joint Reconstruction
Trauma Fixation
Orthopedic Prosthetics
Cranium Maxillofacial Fixation (CMF)
Spinal Surgery
Endoscopy Devices & instruments
Rigid & Flexible Endoscope
In Vitro Diagnostics
Genetic Testing
Clinical Chemistry
Hematology
Immuno Chemistry
Infectious Immunology
Histology And Cytology
Patient Monitoring
Multiparameter Patient Monitoring
Micro-Electromechanical Systems
Non-invasive Blood Pressure Monitors
Neurology Devices
Neurostimulation Devices
Interventional Neurology
CSF Management
Neurosurgical Products
Radiosurgery
Value to the
Direct Investor
2. Healthcare’s Investment Marketplace
Discovery
Develop-
ment I
N
D
PhaseI
PhaseII
PhaseIII
N
D
A
Approval
Launch
Growth
Mature
Healthcare Development & Financing Cycle
IPO / Public MarketsVenture CapitalAngels / Founders Private Equity / M&A
SEED
EXIT
… E M E R G I N G G R O W T H C O M PA N I E S
… ‘ L E A D ’ I N V E S T O R S
… D I R E C T I N V E S T O R S
… S T R AT E G I C PA RT N E R S & B U Y E R S
T R A N S F O R M I N G H E A LT H C A R E C A P I TA L M A R K E T S
on behalf of…
3. Healthcare’s Investment Marketplace
Traditional Alternative Investment Structures
Limited Partners, Family Office,
Endowments, Foreign Trusts, Private Banks,
Sovereign Wealth
Portfolio
Company
#1
Portfolio
Company
#2
Venture
Capital
Private
Equity
Growth
Equity
Hedge
Funds
Lack of ControlNo Flexibility 2% / 20%
10-year Fund
Cycles
7-year
“Hold” Periods
Lower Returns /
IRR
High Fees
Minimal
Transparency
4. Healthcare’s Investment Bank
HealthiosXchange for Direct Investors
HIGHER RETURNS & IRR
RULES-BASED
INVESTMENT STRATEGY
TOTAL CONTROL
12,000 Investors
Across (10)
Asset Classes
in (37) Countries &
2,000 Strategics in
(46) Market sectors
“Seed-to-Exit”
Direct/Diversified
Investment
NO
Adverse
Selection
Messaging
&
Notifications
Ratings &
Reviews
Rules-Based
Deal Flow
Prediction &
Sentiment Data
Proprietary
Events
(6,000)+
Growth
Companies
NO Fee
NO Carry
Shorter “Exit”
Horizons
Real-Time
Valuations &
Research
Less
Correlation
Reporting &
Communications
Zero
Un-Invested
Capital
5. Healthcare’s Investment Marketplace
HealthiosXchange: Higher Returns / IRR
Direct investment in the most promising healthcare companies.
Limited Partners, Family Office, Endowments,
Foreign Trusts, Private Banks, Sovereign Wealth
Portfolio
Company
#1
Portfolio
Company
#2
NO FEE… NO CARRY
SHORTENED HOLD
PERIODS
GREATER LIQUIDITY
Venture
Capital
Private
Equity
Growth
Equity
Hedge
Funds
6. Healthcare’s Investment Marketplace
HealthiosXchange: Rules-Based Investing
Rules-based, direct investing in the most promising healthcare companies.
Limited Partners, Family Office, Endowments,
Foreign Trusts, Private Banks, Sovereign Wealth
Portfolio
Company
#1
Portfolio
Company
#2
1. INSTITUTIONAL
LEADERSHIP
2. STRATEGIC
VALIDATION
3. ESTABLISHED
“EXIT”
PATHWAY
Venture
Capital
Private
Equity
Growth
Equity
Hedge
Funds
7. Healthcare’s Investment Marketplace
HealthiosXchange: Total Control
Direct investment in the most promising healthcare companies.
Limited Partners, Family Office, Endowments,
Foreign Trusts, Private Banks, Sovereign Wealth
Portfolio
Company
#1
Portfolio
Company
#2
Total Transparency
Direct Access to Management
Influence over Valuation &
Investment Structure
100% Discretion, Flexibility
No Adverse Selection
Ultimate Diversification
Exclusive Deal Diligence
360-Degree Communication
Proprietary Event Calendar
Roadshows, “One-on-One’s”,
Conferences
Venture
Capital
Private
Equity
Growth
Equity
Hedge
Funds
8. Healthcare’s Investment Bank
HealthiosXchange for Direct Investors
HIGHER RETURNS & IRR
RULES-BASED
INVESTMENT STRATEGY
TOTAL CONTROL
12,000 Investors
Across (10)
Asset Classes
in (37) Countries &
2,000 Strategics in
(46) Market sectors
“Seed-to-Exit”
Direct/Diversified
Investment
NO
Adverse
Selection
Messaging
&
Notifications
Ratings &
Reviews
Rules-Based
Deal Flow
Prediction &
Sentiment Data
Proprietary
Events
(6,000)+
Growth
Companies
NO Fee
NO Carry
Shorter “Exit”
Horizons
Real-Time
Valuations &
Research
Less
Correlation
Reporting &
Communications
Zero
Un-Invested
Capital
Editor's Notes
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 IRR’s 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:
The most promising Emerging Growth Companies in the world
The most successful Lead Investors
The most active Direct Investors
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 LP’s 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:
Achieve Higher Returns & IRR
Implement a Proprietary “Rules-Based” Investment Strategy
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:
Offering all investments on a “No Fee, No Carry” basis.
Shortening the investment period by allowing capital to be deployed directly into the Company only when it is needed
Accelerating liquidity by returning capital to investors immediately upon the realization of that Company’s “exit” event
Every direct investment offered through HealthiosXchange conforms to a strict “Rule-Set” comprised on three components:
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.
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
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 Company’s 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:
Higher Returns & IRR
Proprietary “Rules-Based” Investment Strategy
Total Control
