Paul Capital Healthcare invests in healthcare products based on the following criteria:

• Are approved, generating revenue or near commercialization
• Have an identifiable and established market
• Have patent and/or regulatory protection
• Are marketed by a strong organization
• The Fund does not require the product to have high growth potential or "blockbuster" potential.

Paul Capital Healthcare is focused on commercial stage or near-market products. While the Fund has invested in products as early as Phase II, it has typically been as part of a basket of products in which some of the products are approved.

Paul Capital Healthcare's investments are flexible in structure and can provide that the institution participates in a portion and potentially all of the upside performance of the product. The Fund can structure agreements with features such as tiered royalties, reverse tiers and caps to insure that both parties are protected. Agreements may also be set for a defined period of time or for certain geographies.

Paul Capital Healthcare can structure the agreement to insure that the inventor retains all or a portion of his or her portion of future royalties as he or she desires.

Once the letter of intent has been negotiated, investments typically will close in approximately four to six weeks.

• The Paul Capital Healthcare team arranges an introductory meeting to better assess the institution's (or inventor's) financial objectives as well as other short- and long-term needs.
• Follow-up consists of communication with the seller to address due diligence questions that arise after initial review of the information.
• Once these questions have been addressed, within approximately two to three weeks, the Paul Capital Healthcare team can develop one or more structures for review.
• After the university or institution selects the approach that best meets its needs, a term sheet is negotiated.
• It will then take approximately four to six weeks for Paul Capital Healthcare to complete the due diligence process, finalize documents and close the transaction.