N-Squared seeks to principally invest in a services-focused company in any of the following two areas:

• Healthcare Services

• Technology & Business Services

Within Healthcare Services, we are most interested in businesses operating in any one of the following five areas:

• Outsourced Physician Staffing (particularly multi-specialty providers with leading practice management capabilities)

• Healthcare Information Technology (especially niche EHR/RCM providers, data analytics services and telemedicine providers)

• Specialty Healthcare and Pharma Services (especially technology-enabled services, specialty labs and specialty facilities-based providers with limited reimbursement risk)

• Payor/Provider-focused BPO Services (especially where niche services could be transitioned to lower cost locations over time)

• Specialty Distribution (especially those focused on alternate non-hospital sites and pharma niches, incl. ex-US)

Within Technology & Business Services, we are most interested in businesses operating in any one of the following five areas:

• Strong Recurring Revenue Businesses (especially niche managed services, software-as-a-service providers and franchising systems)

• Outsourced BPO, IT, Infrastructure or Telecom Services (especially niche managed services focused on the government or financial services market)

• Niche Information Management Services (e.g., regulatory or compliance-oriented data management services)

• Environmental and Energy Services (especially those providing e-waste or IT asset disposition services)

• Education and Training Services (especially in those situations where there are regulatory or certification requirements to stabilize demand; e.g., financial services)