Act 2 of 6

Diversification

On Target

No sector >40%

Top Sector

Healthcare

$480M deployed

Concentration Risk

Low

Within LPA limits

White Space

2 Sectors

Below allocation target

Sector Strategy · Allocation

Sector Analysis & Allocation

$1.9B deployed across 5 target sectors

Investment Thesis

Concentrated Sector Bets with Built-In Diversification

Fund IV deploys capital into sectors where operational complexity creates natural moats. Healthcare and industrial technology represent 60%+ of deployed capital, reflecting conviction in platform consolidation strategies with proven 3x+ return profiles.

Implication 1

Healthcare services platform strategy is ahead of plan — 2 bolt-ons completed in Q4, with 30%+ IRR on track.

Implication 2

Technology allocation at 15% leaves room for one additional vertical SaaS platform before concentration limits bind.

Capital Allocation by Sector

Healthcare Services

$680M / $800M target

Industrial Tech

$420M / $500M target

Financial Services

$380M / $550M target

Technology

$290M / $400M target

Industrials

$155M / $250M target

Sector Investment Theses

4 active sectors

Healthcare Services

Fragmented physician practice management. Platform + bolt-on strategy. Aging demographics = secular tailwind. 30%+ IRR targets.

Entry EV/EBITDA

12-15x

Revenue Growth

15-20%

Industrial Tech

Corporate carve-outs at complexity discount. Strong IP moats in automation, sensors, IoT. Operational improvement drives 200-400bp margin uplift.

Entry EV/EBITDA

10-14x

Revenue Growth

12-18%

Financial Services

Insurance brokerage and wealth management consolidation. 90%+ revenue retention. Recurring fee income = premium multiples.

Entry EV/EBITDA

14-18x

Revenue Growth

10-15%

Technology

Vertical SaaS with 130%+ NDR. Capital-efficient growth. Cross-sell into existing portfolio. IPO-track potential.

Entry EV/EBITDA

15-20x

Revenue Growth

25-35%

CONCENTRATION LIMITS (LPA)

Single investment: max 20% of commitments

Single sector: max 40% of commitments

Single geography: max 30% of commitments