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I. EXECUTIVE SUMMARY
FUND OVERVIEW
New Leaf Ventures III, L.P. (“NLV-III” or the “Fund”) is being formed by New Leaf Venture Partners, L.L.C. (“New Leaf” or the “Management Company”), an established and proven leader in health care technology investing. NLV-III will be the seventh private equity fund focused on venture and growth stage investments in healthcare and life sciences companies raised by the partners of New Leaf. NLV-III is the successor fund to New Leaf Ventures I, L.P. (“NLV-I”) and New Leaf Ventures II, L.P. (“NLV-II”), which raised capital commitments of $310 million and $450 million respectively. The New Leaf funds follow four Sprout Capital funds that included over $1.0 billion of investments in healthcare technology companies.1 In total, the New Leaf team has invested over $1.6 billion and have generated one of the industry’s leading track records by consistently outperforming their peers in the healthcare venture capital market (based on Cambridge Associates benchmarks2) and exceeding relevant public market indices by substantial margins.3,4

The Fund will seek to invest in a diversified portfolio composed of an estimated 24 to 28 healthcare technology companies, most of which will be U.S. based and at the product development or commercialization phase. Fund investments will typically take the form of venture capital or growth capital transactions in private companies, or as structured transactions in small capitalization public companies. The Fund will establish meaningful ownership positions and in most cases will actively manage the investments with representation on the boards of directors. The Fund will seek to generate returns that significantly outperform relevant public market equity indices by creating a portfolio that optimally balances the risks, timelines, and capital intensity associated with developing and commercializing innovative healthcare technologies with the financial market realities that are the backdrop for a venture capital fund focused on this sector.

The Fund is targeting aggregate capital commitments from limited partners of $375 million.

THE NEW LEAF TEAM
New Leaf is one of the most respected, successful, and established brands in healthcare technology investing, a reputation built over the last 18 years by a highly experienced and stable team of partners. NLV-III will be managed by this team of 6 senior partners, 5 of whom have worked together continuously for a decade or more. These partners bring a strong combination of significant and relevant industry operating experience and successful venture capital investment experience to NLV-III.

The Managing Directors of NLV-III are Philippe Chambon MD PhD, Jeani Delagardelle, Ron Hunt, Vijay Lathi, and Liam Ratcliffe MD PhD. Philippe, Jeani, Ron, and Vijay have worked together for 15 years over six prior funds at New Leaf and the Sprout Group. Liam joined the

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1 Sprout Group is a venture capital affiliate of Credit Suisse
2 Please refer to Section III: “Summary of Historical Investment Performance” and Section XIII: “Appendices” including endnote C in Appendix 4 regarding information provided by Cambridge Associates.
3 S&P500, S&P Healthcare, NASDAQ Composite, and Russell 3000. See endnote F in Appendix 4.
4 Please refer to Section III: “Summary of Historical Investment Performance” and Section XIII: “Appendices; Appendix 3” (regarding the PME+ methodology) including endnotes B, D, E and F in Appendix 4.

1 CONTROL NUMBER 257 - CONFIDENTIAL

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