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HOUSE_OVERSIGHT_024014

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quartile benchmarks for U.S. venture capital healthcare and/or U.S. total venture capital.” e Exceeded relevant public equity indices by substantial margins on all realized funds: Members of the New Leaf team invested $1.02 billion in the portfolios of healthcare technology investments in four Sprout Capital funds (Sprout Capital IX, L.P., Sprout Capital VII, L.P., Sprout Capital VI, L.P. and Sprout Growth H, L.P.), and these are now fully realized (or near fully realized in the case of Sprout Capital IX, L.P.). The net annual IRR’s on the healthcare technology portfolios in these funds outperformed the S&P 500 (568 - 2,258 bps), S&P Healthcare (302 - 2,064 bps), NASDAQ Composite (451 - 2,125 bps), and the Russell 3000 (502 - 2,215 bps) using the Public Market Equivalent Plus (PME+) methodology’. Although PME+ methodology is most informative when used to analyze funds whose returns are mature, the PME+ methodology shows that NLV-I is outperforming these same indices, and shows encouraging results for NLV-II despite its relative immaturity. It is this consistently high level of return over an 18 year period, spanning several challenging investment cycles, that creates a truly unique track record within the venture capital sector. The chart below illustrates details of the gross and net performance by fund. Chart 1: Returns by Fund As of March 31, 2014 ($ in millions) Fund: NLV-I NLV-II Fund Size: $310M Fund ¢450M Fun Paid-In Capital $303M $407M Vintage Year: (2005 (2008 First Investment 1995 1005 1998 2000 2005 2008 Gross Fund Returns TatalMitiniaN Total Multiple ‘0 4.4x 2.6x 1.7x 2.0x 2.1« 1.8x Realized Multiple 4.4x 2.6x 1.7x 2.2x 1.7x 2.0x Total IRR ° 5 44% 19% 10% 15% 19% 30% Realized IRR 44% 19% 10% 17% 23% 33% Net Fund Returns Net Total Multiple 3.69x , 2.17xK , 1.49x , 1.66x - 1.75x 1.45x Net Total IRR 28.9% 12.0% 6.0% 9.3% 12.0% 16.7% ea Net Distributed / Paid-In Multiple 3.69x 2.17x 1.49x 1.55x 0.51x 0.50x Net Distributed $s to LPs $56.3 $207.0 $218.7 $1,0

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