In 2007, AHV closed a second fund, CHV II, L.P. with $200 million in commitments from Ascension Health, Catholic Health Initiatives and Catholic Health East. AHV will serve as the general partner of CHV II, L.P. and provide management services. CHV II will continue the investment strategy that AHV employed in its first fund, targeting expansion to later stage medical device, healthcare technology and healthcare service companies in areas of interest to the limited partners. A portion of the fund will also be committed to other healthcare venture funds.

As a strategic investor, AHV adds value to its portfolio companies by sharing solutions across its network of nearly 200 acute care hospitals within its limited partners. AHV actively pursues investment opportunities in areas of interest to its limited partners' hospitals to build the synergies between the investment strategy and the hospitals' needs. Hospitals are not required to adopt portfolio company solutions. AHV makes the connection, but the facilities are empowered to make their own decisions.

^top

Investment Process and Criteria
We take pride in our thorough diligence process. After an initial screening process, AHV seeks to leverage internal intellectual resources by tapping the talents and insight of professionals throughout our limited partner base. Opportunities are evaluated for potential clinical, operational and financial benefits to our limited partner  health systems in addition to the financial return to the venture fund.

Every opportunity is evaluated against the following criteria. Diversification is also a consideration; AHV seeks to balance the portfolio across sectors and stages to mitigate investment risk.

• Industry
  Healthcare segments including medical devices, medical and information technology and services. AHV has also selectively invested in other healthcare venture funds.
  
• Investment Size
  Approximately $5 million per round; up to $10 million per company.
  
• Company Stage
  Expansion- to late-stage within three to five years of a potential liquidating event.
  
• Adoption Potential
  Sustainable competitive advantage with compelling benefit sufficient to influence market adoption.
  
• Management Team
  Established team with demonstrated relevant experience, depth and capability to build the business to scale and attract customers.
  
• Other
  AHV typically requests a Board observer seat for each portfolio company.

^top

Investment Professionals
Individuals with complementary skills have been recruited to form a solid, dynamic investment team. AHV's success is spurred by the breadth and depth of healthcare, financial and other related experiences of its professionals.

Left to right: Ryan Schuler, Jamie Wehrung, Matt Hermann, Tara Butler, M.D., Laura Rush, Taras Silecky

Matthew I. Hermann - Managing Director
Matt Hermann actively leads AHV's investing efforts. Before joining AHV, he served for five years, most recently as vice president with Atlantic Medical Management, LLC, a New York-based venture capital management company focused on early- to mid-stage healthcare services and information technology companies. Prior to that, Mr. Hermann served in financial management roles at two publicly traded healthcare companies, Nutrition 21, Inc. and Regeneron Pharmaceuticals, Inc., and worked at J.P. Morgan Chase & Co. and PricewaterhouseCoopers in New York City. Mr. Hermann is a board observer at several AHV portfolio companies.

He holds a Bachelor's of Science in Engineering from Tufts University, College of Engineering, and an MBA in Finance from New York University, Leonard N. Stern Graduate School of Business.

Tara D. Butler, M.D. - Investment Director
Tara Butler came to AHV after completing a residency in obstetrics and gynecology at Barnes Jewish Hospital in St. Louis. Prior to attending medical school, she held positions in business development at Medtronic, in finance at Honeywell and as a laboratory research assistant at the University of Pennsylvania School of Medicine. Dr. Butler is a board observer at several AHV portfolio companies.

She is a junior member of the American College of Obstetrics and Gynecology and an Advisory Board Member of the Coriell Institute for Medical Research. Dr. Butler holds a Bachelor of Science in Economics and an MBA from the Wharton School of Business at the University of Pennsylvania, and a Doctor of Medicine from the University of Pennsylvania School of Medicine.

Walter Lin, MD - Investment Manager
Walter Lin joined AHV from Catholic Healthcare West, where he served as the corporate Director of Clinical Innovations. In that role, he led a team focused on improving quality and decreasing costs by minimizing unnecessary variation in clinical practice patterns. He is a board-certified internist and has maintained a part-time clinical practice.

Dr. Lin holds a Doctor of Medicine from the University of California, San Francisco, a MBA from the Wharton School of Business, University of Pennsylvania, a Master of Science from the University of California, Berkeley and a Bachelors of Arts and Science in Economics and Biology from Stanford University. He completed his training in internal medicine at Yale New Haven Hospital.

Ryan L. Schuler - Investment Director
Ryan Schuler joined AHV from the investment banking division at A.G. Edwards & Sons, where he served as an analyst in the firm's M&A group and previously as a real estate analyst in its corporate finance group. Prior to his tenure at A.G. Edwards, Mr. Schuler was an associate in PricewaterhouseCoopers. Mr. Schuler is a board observer at several AHV portfolio companies.

Mr. Schuler holds a Bachelor's degree in Accounting from Christian Brothers University and an MBA from The Olin School of Business at Washington University.

Taras Silecky - Investment Manager
Prior to joining Ascension Health Ventures, Mr. Silecky served as an investment manager with the Western NIS Enterprise Fund, a $150 million private equity fund. Before that, he held information technology management roles with the Follett Higher Education Group, Chicago Cybernetics and Bio-Logic Systems Corporation. Mr. Silecky is a board observer at several AHV portfolio companies.

Mr. Silecky holds a Bachelor of Science in Biomedical Engineering from Northwestern University and a Master's degree in Computer Science from DePaul University.

Jeff Stolte - Investment Associate
Jeff Stolte joined AHV from Ascension Health’s Strategic Development Group where he supported the health system’s executive leadership team on numerous strategic initiatives and business development activities. Prior to his tenure at Ascension Health, Mr. Stolte served in product management and business development roles for entrepreneurial healthcare technology companies WebMD, WellMed and HealthLanguage.

Mr. Stolte holds a B.A. from the University of Chicago, an M.S. in Medical Informatics from the Oregon Health & Science University and an M.B.A. from the University of Chicago Graduate School of Business.

Jamie Wehrung - Director, Finance and Administration
Jamie Wehrung brings several years of accounting and finance experience, including 15 years with Catholic healthcare systems, to her position at AHV. She joins AHV after three years as a senior analyst in the financial planning group at Ascension Health, AHV's parent organization. Prior to that, Ms. Wehrung spent seven years in finance posts with Caritas Christi Healthcare System in Boston, the last three as director of finance. She began her career in the audit division of Deloitte & Touche LLP in Boston.

A certified public accountant, Ms. Wehrung earned her Bachelor's degree in Accountancy from Southern Illinois University at Carbondale.

Governance
AHV's second fund is governed by a 11-member Board of Managers. This body is comprised of internal and external individuals with representation from healthcare venture capital, healthcare investment banking, merchant banking, entrepreneurship and healthcare consulting.

• F. Gary Valdez, Chairperson - President, Focus Strategies
• Alan Armer, PhD - Vice President, Research and Development, Catholic Health Initiatives
• Sr. Bernice Coreil, DC - Senior Executive Advisor to the President, Ascension Health
• Charlie Francis - Senior Vice President, Chief Strategy Officer – Catholic Healthcare West
• Thomas Garthwaite, M.D. - Chief Medical Officer, Catholic Health East
• Bruce A. Hochstadt, MD - Health & Welfare Principal, National Health Management Practice Leader, Mercer
• Susan Matlock - President, Entrepreneurial Center and Executive Director of the Office for the Advancement of Developing Industries, University of Alabama at Birmingham
• William Mills - Managing Member, EGS Healthcare Capital Partners
• Chris Regan - Managing Director, The Chartis Group, LLC
• Marc Sarni - Principal, Cornerstone Investment s, LLC
• Anthony Speranzo - Chief Financial Officer, Ascension Health

Governance for AHV’s first fund, which is fully invested, committed and reserved is carried out through an internal Board of Managers. During the active investment period, it too had a 10-person, multi-disciplinary Board.

• Sr. Bernice Coreil, DC - Senior Executive Advisor to the President, Ascension Health
• John Doyle - Chief Strategy Officer, Ascension Health
• Anthony Speranzo - Chief Financial Officer, Ascension Health

^top