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TRSL Presentation December 5, 2005 Joseph F. Lovett Louisiana Fund I Managing Director.

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Presentation on theme: "TRSL Presentation December 5, 2005 Joseph F. Lovett Louisiana Fund I Managing Director."— Presentation transcript:

1 TRSL Presentation December 5, 2005 Joseph F. Lovett Louisiana Fund I Managing Director

2 I.US Venture Capital II.Health Care Venture Capital III.Venture Capital Performance US Cal PERS PRIM – Massachusetts IV.Louisiana Fund I Venture Capital in Louisiana Team Limited Partners Portfolio Companies Summary

3 I. US Venture Capital 1,750 Venture Capital & Private Equity Partnerships Capitalization:$585 Billion Average Total Investment 1 year: $20 billion

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5 $ in millions IndustryQ2YTD Q2 2004Q2 2005YTD Q Biotechnology$1,1012.8$1,902.6$1,122.2$1,753.8 Medical Devices$509.7$860.5$425.7$870.3 Healthcare Services $304.8$423.4$219.5$341.2 Total Health Industries VC Dollars $1827.3$3,186.5$1,767.4$2,965.2 Total VC Dollars $5,983.2$11,104.9$5,774.9$10,645.8

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8 Hot areas of Investment in Health Care (10 year PWC Money Tree Survey) Individual disease management Cancer drug development Genomics Molecular Biology Innovative drug delivery methods Management of hospitals / clinics Obesity / weight loss treatments

9 III. Venture Capital Performance Fund Type1 Year3 Year5 Year10 Year20 Year Early/Seed VC2.1%-2.4%-10.5%48.8%20.2% Balanced VC11.7%7.6%-2.6%18.0%13.7% Later Stage VC8.8%3.2%-6.8%14.1%13.8% All Venture7.8%3.0%-6.3%25.8%16.0% Small Buyouts51.3%8.1%2.4%8.5%25.7% Med Buyouts29.3%6.4%-1.2%10.6%18.4% Large Buyouts21.4%12.9%3.0%10.9%14.7% Mega Buyouts26.9%11.1%3.6%8.1%11.0% All Buyouts26.9%11.0%2.9%9.0%13.8% Mezzanine9.7%4.2%3.2%6.6%9.1% All Private Equity20.4%8.2%0.1%12.7%13.8% NASDAQ0.4%12.0%-12.3%8.2%11.3% S&P %6.4%-3.9%8.1%10.6%

10 Calpers: AIM Program VC Funds $7.2 Billion in Generated Profits

11 FUNDYEARCOMMITED CAPITALCASH OUT & REMANING VALUEINTERIM IRR Alta Bio Pharma1998$50,000,000$81,205, % Alta California Pts1996$ $203,361, % Alta California Pts II1998$115,000,000$86,087,657(5.9)% Alta1996$30,000,000$37,247,3395.8% Alta V1992$35,000,000$83,043, % Golder,Toma III1994$25,000,000$514, % Golder, Toma V1997$40,000,000$64,664,6649.7% Hicks, Muse II1994$100,000,000$213,100, % Hicks, MUSE IIII1997$100,000,000$61,449,392(7.4%) KKR European I2001$75,000,000$93,677, % KKR Millennium2002$150,000,000$88,346, % Perseus Seros2001$40,000,000$37,342, % Sanderling IV1997$50,000,000$81,998, % Thomas Lee III1996$100,000,000$143,509, % Thomas LeeIII1998$100,000,000$134,272,5221.5% Warburg Pincus1990$100,000,000$236,300, % William Simon & Sons2001$25,000,000$30,069,6925.8%

12 State of Massachusetts PRIM $32.5 Billion 103 Venture Capital Funds 1986 – 1998 Returns: Majority between 10-30% Five Funds exceeded 50% Biggest Winner: Menlo Ventures IV : 127% Biggest Loser: Invexco ( a Houston oil & gas fund) (46%) Average annual Return: 12.7% US Thompson Venture Economics: 13.6% average

13 PRIM FUNDIRR Advent ESSF17% Advent GPE II22% Advent GPE III7% Advent International5% Advant International VI32% Fosrtman D&E III5% Fosrtman D&E IV20% Fosrtman D&E V18% Harbour Vest II9% Harbour Vest III14% Harbour Vest International11% KKR % KKR % KKR % KKR % NEA IV10% NEA VIII34% Tom Lee55% Tom Lee III31% Tom Lee IV(4)%

14 VENTURE CAPITAL INVESTMENTS: U.S. LOUISIANA No. Companies Investment $ No. Companies Investment $ ,320 $315,410,000, $616,000,000* Source: Price Waterhouse Coopers Data *One-half invested in one oil-related company, no companies in pharmaceuticals or biotechnology

15 US: Venture Capital Backed Companies Tandem Compaq Intel Genentech Amazon. COM Google Netscape Federal Express Oracle Sun Microsystems

16 Why is there a lack of venture capital in Louisiana?  Tradition  Venture Capital in Louisiana historically focused on late-stage investments  Similar to Boston in the 1980’s  Leadership Needed: - Harvard in Boston in 1988 with Medical Science Partners - LSU/LED/TRSL in Louisiana in 2004 with Louisiana Fund I

17 Sources in Louisiana for Early Stage Companies - Entrepreneurs - Universities, Academic Medical Centers, Research Centers and Companies - $ M per year in Research & Development Spending—50-60% in Life Sciences

18 Louisiana Fund I: Overview Louisiana needs a local early stage investment fund  Create home-grown companies located in Louisiana  Attract out-of-state companies to Louisiana  Investment in existing companies  Out-of-state investment funds will invest in Louisiana companies  LFI team experienced in working with early stage technologies and early stage companies

19 Benefits to Investors and Louisiana Attractive financial return on investment for investors Louisiana Fund I catalyst for creating new industries, companies and jobs across Louisiana Assist local economic development efforts Local companies based on locally developed technology will remain in Louisiana Attract Louisiana natives back home Out-of-state investors will invest in Louisiana companies Favorable publicity for investors

20 Louisiana Fund I: Scientific & Business Advisory Board Members Assist the Fund with due diligence Advice of key investment areas Serve on Boards of Companies Currently twelve members  MBAs -Board Members of Public Companies  PhDs-DMVs  CEOs-DDSs

21 Scientific and Business Advisory Board Current Members from Eli LillyUniversity of Pennsylvania GlaxoSmithKlineLouisiana Tech University Model SoftwareLSU Health Science Center, Shreveport Spirit-it Inc.Tulane University Aperion, LLCAnthem Capital

22 Portfolio Companies International Mezzo Systems—Nanotechnology & Micromachining Technology, LSU Incubator Company, LSU licensed technology Patient Care Inc. – Health Insurance advocacy services, New Orleans Esperance Biomedical, Pennington, LSU CAMD and LSU AG Center, Oncology Technology—lytic peptides for imaging and therapy for breast cancer metastases


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