----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

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----

| Delaware                                                      | 61-1552209                          |
|---------------------------------------------------------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |

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|                              |                                                       |                                |   |
|-----------------------------------|------------------------------------------------------------|-------------------------------------|--------|
| Large accelerated filer | o                                                          | Accelerated filer              | o      |
|                              |                                                       |                                |   |
| Non-accelerated filer        | o  (Do not check if a smaller reporting company) | Smaller Reporting Company | x      |

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INDEX

INDEX TO QUARTERLY REPORT

|       |                                                                                        | PAGE      |
|------------|---------------------------------------------------------------------------------------------|-----------|
| PART I     | FINANCIAL INFORMATION                                                                       |      |
| ITEM 1.    | Financial Statements                                                                        |   3  |
|       | Consolidated Balance Sheets – March 31, 2011 and December 31, 2010 (Unaudited)        |   3  |
|       | Consolidated Statements of Operations –                                               |      |
|       | Three Months Ended March 31, 2011 and 2010 (Unaudited)                                      |   4  |
|       | Consolidated Statement of Changes in Partners’ Capital –                        |      |
|       | Three Months Ended March 31, 2011 (Unaudited)                                               |   5  |
|       | Consolidated Statements of Cash Flows –                                               |      |
|       | Three Months Ended March 31, 2011 and 2010 (Unaudited)                                      |   6  |
|       | Notes to Consolidated Financial Statements – March 31, 2011 (Unaudited)               |   7  |
| ITEM 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   14 |
| ITEM 3.    | Quantitative and Qualitative Disclosures about Market Risk                                  |   22 |
| ITEM 4.    | Controls and Procedures                                                                     |   22 |
|       |                                                                                        |      |
| PART II    | OTHER INFORMATION                                                                           |      |
| ITEM 6.    | Exhibits                                                                                    |   22 |
|       |                                                                                        |      |
| SIGNATURES |                                                                                        |

----

INDEX

Item 1. Financial Statements

Consolidated Balance Sheets

|                                                     |   | March 31, |    |   | December 31, |   |
|----------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                                     |   | 2011      |    |   | 2010         |   |
| ASSETS                                                   |   |      |    |   |         |   |
| Cash                                                     |   | $         | 1,839   |   |         | $      | 394 |   |
| Restricted cash                                          |   |      | 20,135  |   |         |   | 20,505 |   |
| Investment in leases and loans, net                      |   |      | 293,038 |   |         |   | 334,826 |   |
| Derivative assets at fair value                          |   |      | — |   |         |   | 147 |   |
| Deferred financing costs, net                            |   |      | 3,855   |   |         |   | 3,487 |   |
| Other assets                                             |   |      | 243     |   |         |   | 253 |   |
| Total assets                                             |   | $         | 319,110 |   |         | $      | 359,612 |   |
|                                                     |   |      |    |   |         |   |   |   |
| LIABILITIES AND PARTNERS’ CAPITAL                  |   |      |    |   |         |   |   |   |
| Liabilities:                                             |   |      |    |   |         |   |   |   |
| Debt                                                     |   | $         | 252,775 |   |         | $      | 296,975 |   |
| Accounts payable, accrued expenses and other liabilities |   |      | 1,205   |   |         |   | 894 |   |
| Derivative liabilities at fair value                     |   |      | — |   |         |   | 2,856 |   |
| Due to affiliate                                         |   |      | 134     |   |         |   | 25 |   |
| Subordinated notes payable                               |   |      | 9,355   |   |         |   | 9,355 |   |
| Total liabilities                                        |   |      | 263,469 |   |         |   | 310,105 |   |
|                                                     |   |      |    |   |         |   |   |   |
| Commitments and contingencies                            |   |      |    |   |         |   |   |   |
|                                                     |   |      |    |   |         |   |   |   |
| Partners’ Capital:                                 |   |      |    |   |         |   |   |   |
| General partner                                          |   |      | (551    | )      |         |   | (609 | ) |
| Limited partners                                         |   |      | 55,535  |   |         |   | 49,642 |   |
| Total LEAF 4 partners’ capital                     |   |      | 54,984  |   |         |   | 49,033 |   |
| Noncontrolling interest                                  |   |      | 657     |   |         |   | 474 |   |
| Total partners’ capital                            |   |      | 55,641  |   |         |   | 49,507 |   |
| Total liabilities and partners’ capital            |   | $         | 319,110 |   |         | $      | 359,612 |   |

----

INDEX

Consolidated Statements of Operations

|                                                                                |   | Three Months Ended March 31, |      |
|-------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                |   | 2011                         |      |   | 2010 |   |
| Revenues:                                                                           |   |                         |      |   |   |   |
| Interest on equipment financings                                                    |   | $                            | 5,763     |   |   | $ | 9,952 |   |
| Rental income                                                                       |   |                         | 648       |   |   |   | 756 |   |
| Gains on sales of equipment and lease dispositions, net                             |   |                         | 61        |   |   |   | 196 |   |
| Gain on extinguishment of debt                                                      |   |                         | 13,677    |   |   |   | — |   |
| Other                                                                               |   |                         | 353       |   |   |   | 382 |   |
|                                                                                |   |                         | 20,502    |   |   |   | 11,286 |   |
|                                                                                |   |                         |      |   |   |   |   |   |
| Expenses:                                                                           |   |                         |      |   |   |   |   |   |
| Interest expense                                                                    |   |                         | 6,746     |   |   |   | 6,202 |   |
| Losses on derivative activities                                                     |   |                         | 126       |   |   |   | 1,971 |   |
| Depreciation on operating leases                                                    |   |                         | 559       |   |   |   | 636 |   |
| Provision for credit losses                                                         |   |                         | 4,549     |   |   |   | 5,932 |   |
| General and administrative expenses                                                 |   |                         | 378       |   |   |   | 604 |   |
| Administrative expenses reimbursed to affiliate                                     |   |                         | 739       |   |   |   | 868 |   |
| Management fees to affiliate                                                        |   |                         | —   |   |   |   | 1,234 |   |
|                                                                                |   |                         | 13,097    |   |   |   | 17,447 |   |
| Net income (loss)                                                                   |   |                         | 7,405     |   |   |   | (6,161 | ) |
|                                                                                |   |                         |      |   |   |   |   |   |
| Less: Net loss attributable to the noncontrolling interest                     |   |                         | (183      | ) |   |   | (63 | ) |
| Net income (loss) attributable to LEAF 4 partners                                   |   | $                            | 7,222     |   |   | $ | (6,224 | ) |
| Net income (loss) allocated to LEAF 4’s limited partners                      |   | $                            | 7,150     |   |   | $ | (6,162 | ) |
| Weighted average number of limited partner units outstanding during the period |   |                         | 1,259,537 |   |   |   | 1,260,131 |   |
|                                                                                |   |                         |      |   |   |   |   |   |
| Net income (loss) per weighted average limited partner unit                         |   | $                            | 5.68      |   |   | $ | (4.89 | ) |

----

INDEX

Consolidated Statement of Changes in Partners’ Capital

|                                                                   |   | General |    |   |             |   |      |            |   |   | LEAF 4      |   |   | Non-            |    |   | Total         |   |    |          |   |
|------------------------------------------------------------------------|--------|---------|---------|--------|------------------|--------|-----------|-----------------|--------|--------|-------------|--------|--------|-----------------|---------|--------|---------------|--------|---------|---------------|--------|
|                                                                   |   | Partner |    |   | Limited Partners |   |      | Partners’ |   |   | Controlling |   |   | Partners’ |    |   | Comprehensive |   |
|                                                                   |   | Amount  |    |   | Units            |   |      | Amount          |   |   | Capital     |   |   | Interest        |    |   | Capital       |   |    | Income (Loss) |   |
| Balance, at January 1, 2011                                       |   | $       | (609    | )      |             |   | 1,259,537 |            |   | $      | 49,642      |   |   | $               | 49,033  |   |          | $      | 474     |          |   | $ | 49,507 |   |   |   |   |
| Return of offering costs related the sale of limited partnership units |   |    | — |   |             |   | —   |            |   |   | 3           |   |   |            | 3       |   |          |   | — |          |   |   | 3 |   |   |   |   |
| Cash distributions paid                                                |   |    | (14     | )      |             |   | —   |            |   |   | (1,260      | )      |   |            | (1,274  | )      |          |   | — |          |   |   | (1,274 | ) |   |   |   |
| Comprehensive loss:                                                    |   |    |    |   |             |   |      |            |   |   |        |   |   |            |    |   |          |   |    |          |   |   |   |   |   |   |   |
| Net income                                                             |   |    | 72      |   |             |   | —   |            |   |   | 7,150       |   |   |            | 7,222   |   |          |   | 183     |          |   |   | 7,405 |   |   | $ | 7,405 |   |
| Comprehensive loss attributable to noncontrolling interest             |   |    | — |   |             |   | —   |            |   |   | —     |   |   |            | — |   |          |   | — |          |   |   | — |   |   |   | (183 | ) |
| Comprehensive income attributable to LEAF 4                            |   |    | — |   |             |   | —   |            |   |   | —     |   |   |            | — |   |          |   | — |          |   |   | — |   |   | $ | 7,222 |   |
| Balance, March 31, 2011                                                |   | $       | (551    | )      |             |   | 1,259,537 |            |   | $      | 55,535      |   |   | $               | 54,984  |   |          | $      | 657     |          |   | $ | 55,641 |   |   |   |   |   |

----

INDEX

Consolidated Statements of Cash Flows

|                                                                                               |   | Three Months Ended March 31, |          |
|----------------------------------------------------------------------------------------------------|--------|------------------------------|---------------|
|                                                                                               |   | 2011                         |          |   | 2010 |   |
| Cash flows from operating activities:                                                              |   |                         |          |   |   |   |
| Net income (loss) attributable to LEAF 4                                                           |   | $                            | 7,222         |   |   | $ | (6,224 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |                         |          |   |   |   |   |   |
| Gain on extinguishment of debt                                                                     |   |                         |  (13,677 | )  |   |   | — |   |
| Gains on sales of equipment and lease dispositions, net                                            |   |                         | (61           | ) |   |   | (196 | ) |
| Amortization of deferred charges and discount on debt                                              |   |                         | 3,918         |   |   |   | 1,844 |   |
| Depreciation on operating leases                                                                   |   |                         | 559           |   |   |   | 636 |   |
| Provision for credit losses                                                                        |   |                         | 4,549         |   |   |   | 5,932 |   |
| Net loss attributable to the noncontrolling interest                                               |   |                         | 183           |   |   |   | 63 |   |
| Unrealized losses (gains) on derivative hedging activities                                         |   |                         | 166           |   |   |   | (661 | ) |
| Changes in operating assets and liabilities, net of effect of acquisitions:                        |   |                         |          |   |   |   |   |   |
| Other assets                                                                                       |   |                         | 15            |   |   |   | 79 |   |
| Accounts payable, accrued expenses, other liabilities and other assets                             |   |                         | 311           |   |   |   | (281 | ) |
| Due to affiliates                                                                                  |   |                         | 107           |   |   |   | (171 | ) |
| Net cash provided by operating activities                                                          |   |                         | 3,292         |   |   |   | 1,021 |   |
|                                                                                               |   |                         |          |   |   |   |   |   |
| Cash flows from investing activities:                                                              |   |                         |          |   |   |   |   |   |
| Purchases of leases and loans                                                                      |   |                         | —       |   |   |   | (6,992 | ) |
| Proceeds from leases and loans                                                                     |   |                         | 36,047        |   |   |   | 35,624 |   |
| Security deposits collected, net of returns                                                        |   |                         | (227          | ) |   |   | (820 | ) |
| Net cash provided by investing activities                                                          |   |                         | 35,820        |   |   |   | 27,812 |   |
|                                                                                               |   |                         |          |   |   |   |   |   |
| Cash flows from financing activities:                                                              |   |                         |          |   |   |   |   |   |
| Borrowings of debt                                                                                 |   |                         | 89,748        |   |   |   | 14,179 |   |
| Repayment of debt                                                                                  |   |                         | (121,971      | ) |   |   | (44,732 | ) |
| Decrease in restricted cash                                                                        |   |                         | 370           |   |   |   | 3,141 |   |
| (Increase) decrease in deferred financing costs                                                    |   |                         | (1,665        | ) |   |   | 6 |   |
| Termination of financial derivatives                                                               |   |                         | (2,875        | ) |   |   | — |   |
| Cash distributions to partners                                                                     |   |                         | (1,274        | ) |   |   | (2,705 | ) |
| Redemption of limited partnership units                                                            |   |                         | —       |   |   |   | (43 | ) |
| Net cash used in financing activities                                                              |   |                         | (37,667       | ) |   |   | (30,154 | ) |
|                                                                                               |   |                         |          |   |   |   |   |   |
| Increase (decrease) in cash                                                                        |   |                         | 1,445         |   |   |   | (1,321 | ) |
| Cash, beginning of period                                                                          |   |                         | 394           |   |   |   | 1,621 |   |
| Cash, end of period                                                                                |   | $                            | 1,839         |   |   | $ | 300 |   |

----

INDEX

Notes To Consolidated Financial Statements

----

INDEX

----

INDEX

|                               |   | Three Months Ended March 31, |    |
|------------------------------------|--------|------------------------------|---------|
|                               |   | 2011                         |    |   | 2010 |   |
| Cash paid for:                     |   |                         |    |   |   |   |
| Interest                           |   | $                            | 2,721   |   |   | $ | 7,125 |   |
|                               |   |                         |    |   |   |   |   |   |
| Non-cash investing activities:     |   |                         |    |   |   |   |   |   |
| Increase in participation in loans |   | $                            | — |   |   | $ | 349 |   |

|                            |   | March 31, |    |   | December 31, |   |
|---------------------------------|--------|-----------|---------|--------|--------------|--------|
|                            |   | 2011      |    |   | 2010         |   |
| Direct financing leases (1)     |   | $         | 96,030  |   |         | $      | 108,406 |   |
| Loans (2)                       |   |      | 204,161 |   |         |   | 231,953 |   |
| Operating leases                |   |      | 3,407   |   |         |   | 4,008 |   |
| Future payment card receivables |   |      | 294     |   |         |   | 313 |   |
|                            |   |      | 303,892 |   |         |   | 344,680 |   |
| Allowance for credit losses     |   |      | (10,854 | )      |         |   | (9,854 | ) |
|                            |   | $         | 293,038 |   |         | $      | 334,826 |   |

| (1) | The Fund’s direct financing leases are for initial lease terms generally ranging from 24 to 96 months. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (2) | The interest rates on loans generally range from 7% to 14%. |
|-----|-------------------------------------------------------------|

----

INDEX

|                                           |   | March 31, |    |   | December 31, |   |
|------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                           |   | 2011      |    |   | 2010         |   |
|                                           |   | Leases    |    |   | Loans        |   |   | Leases |   |   | Loans |   |
| Total future minimum lease payments            |   | $         | 103,181 |   |         | $      | 233,496 |   |   | $ | 117,370 |   |   | $ | 266,679 |   |
| Unearned income                                |   |      | (9,489  | )      |         |   | (24,539 | ) |   |   | (11,228 | ) |   |   | (29,713 | ) |
| Residuals, net of unearned residual income (1) |   |      | 3,604   |   |         |   | — |   |   |   | 3,578 |   |   |   | — |   |
| Security deposits                              |   |      | (1,266  | )      |         |   | (4,796 | ) |   |   | (1,314 | ) |   |   | (5,013 | ) |
|                                           |   | $         | 96,030  |   |         | $      | 204,161 |   |   | $ | 108,406 |   |   | $ | 231,953 |   |

| (1)  | Unguaranteed residuals for direct financing leases represent the estimated amounts recoverable at lease termination from lease extensions or disposition of the equipment. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | March 31, |   |   | December 31, |   |
|--------------------------|--------|-----------|--------|--------|--------------|--------|
|                     |   | 2011      |   |   | 2010         |   |
| Equipment                |   | $         | 8,470  |   |         | $      | 8,549 |   |
| Accumulated depreciation |   |      | (5,063 | )      |         |   | (4,541 | ) |
|                     |   | $         | 3,407  |   |         | $      | 4,008 |   |

|                     |   | Investment in leases |    |   |   |   |
|--------------------------|--------|----------------------|---------|--------|--------|--------|
| Age of receivable        |   | and loans            |    |   | %      |   |
| Current                  |   | $                    | 282,801 |   |   |   | 93.1 | % |
| Delinquent:              |   |                 |    |   |   |   |   |   |
| 31 to 91 days past due   |   |                 | 5,470   |   |   |   | 1.8 | % |
| Greater than 91 days (a) |   |                 | 15,621  |   |   |   | 5.1 | % |
|                     |   | $                    | 303,892 |   |   |   | 100.0 | % |

| Performing    |   | $      | 288,271 |   |
|---------------|--------|--------|---------|--------|
| Nonperforming |   |   | 15,621  |   |
|          |   | $      | 303,892 |   |

----

INDEX

|                                           |   | Three Months Ended March 31, |   |
|------------------------------------------------|--------|------------------------------|--------|
|                                           |   | 2011                         |   |   | 2010 |   |
| Allowance for credit losses, beginning of year |   | $                            | 9,854  |   |   | $ | 15,634 |   |
| Provision for credit losses                    |   |                         | 4,549  |   |   |   | 5,932 |   |
| Charge-offs                                    |   |                         | (3,808 | ) |   |   | (7,743 | ) |
| Recoveries                                     |   |                         | 259    |   |   |   | 97 |   |
| Allowance for credit losses end of period (a)  |   | $                            | 10,854 |   |   | $ | 13,920 |   |

| 2011       |   | $      | 1,663 |   |
|------------|--------|--------|-------|--------|
| 2012       |   |   | 1,042 |   |
| 2013       |   |   | 603   |   |
| 2014       |   |   | 370   |   |
| 2015       |   |   | 101   |   |
| Thereafter |   |   | 76    |   |
|       |   | $      | 3,855 |   |

|                       |   |                  |   |          |         |        |   |   |              |      |   |            |   |   |
|----------------------------|--------|-----------------------|--------|---------------|--------------|-------------|--------|--------|-------------------|-----------|--------|-----------------|--------|--------|
|                       |   |   March 31, 2011 |   |          | December 31, |        |
|                       |   |                  |   |          |         | Outstanding |   |   | Interest rate per |      |   | 2010Outstanding |   |
|                       |   | Type                  |   | Maturity Date |         | Balance (1) |   |   | annum             |      |   | Balance         |   |
|                       |   |                  |   |          |         |        |   |   |              |      |   |            |   |   |
|                       |   |                  |   |          |         |        |   |   |              | One month |   |            |   |   |
| Morgan Stanley             |   | Term                  |   |          | (2)          |        |   | $      | —           |      |   | LIBOR + 3.%     |   |   | $ | 101,855 |   |
|                       |   |                  |   |          |         |        |   |   |              |      |   |            |   |   |   |   |   |
| 2011-1 Term Securitization |   | Term                  |   |          | (2)          |        |   |   | 82,581            |      |   | 1.7% to 5.5%    |   |   |   | — |   |
|                       |   |                  |   |          |         |        |   |   |              |      |   |            |   |   |   |   |   |
| 2010-1 Term Securitization |   | Term                  |   |          | (3)          |        |   |   | 45,673            |      |   |  5.00%     |   |   |   | 54,638 |   |
|                       |   |                  |   |          |         |        |   |   |              |      |   |            |   |   |   |   |   |
| 2010-3 Term Securitization |   | Term                  |   |          | (4)          |        |   |   | 124,521           |      |   | 3.5% to 5.5%    |   |   |   | 140,482 |   |
|                       |   |                  |   |          |         |        |   | $      | 252,775           |      |   |            |   |   |   | $ | 296,975 |   |

| (1)  | Collateralized by specific leases and loans and related equipment. As of March 31, 2011, $262.0 million of leases and loans and $18.7 million of restricted cash were pledged as collateral under the Fund’s term securitizations. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | The Morgan Stanley term loan matured on August 4, 2010. Subject to negotiations between Morgan Stanley and the Fund, the facility was terminated and paid off at a discount  on January 26, 2011 with the proceeds from the 2011-1 Term Securitization, in which 6 classes of asset-backed notes were issued that have varying maturity dates ranging from December 2018 to December 2023. The asset-backed notes totaled $ 96.0 million and bear interest at fixed, stated rates ranging from 1.7% to 5.5% and were issued at an original discount of approximately $6.2 million.  As a result of the securitization and cancellation of the term loan, the Fund recognized a gain on extinguishment of debt of approximately $13.7 million. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

| (3)  | On May 18 2010, a previous lender was paid- off with the proceeds from the 2010-1 Term Securitization in which 3 classes of asset-backed notes were issued, one that matures on October 23, 2016 and two that mature on September 23, 2018, respectively. The asset-backed notes total $92.7 million and bear interest at a fixed, stated rate of 5% and were issued at an original discount of approximately $6.5 million. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | On August 17, 2010, two previous lenders were paid- off with the proceeds from the 2010-3 Term Securitization in which 5 classes of asset-backed notes were issued, one that matures on June 20, 2016 and 4 that mature on February 20, 2022, respectively. The asset-backed notes total $171.4 million and bear interest at fixed, stated rates ranging from 3.5% to 5.5% and were issued at an original discount of approximately $3.7 million. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2012       |   | $      | 89,342  |   |
|------------|--------|--------|---------|--------|
| 2013       |   |   | 77,145  |   |
| 2014       |   |   | 48,495  |   |
| 2015       |   |   | 20,029  |   |
| 2016       |   |   | 8,548   |   |
| Thereafter |   |   | 9,216   |   |
|       |   | $      | 252,775 |   |

----

INDEX

|                    |   | Three Months Ended March 31, |    |
|-------------------------|--------|------------------------------|---------|
|                    |   | 2011                         |    |   | 2010 |   |
| Acquisition fees        |   | $                            | — |   |   | $ | 139 |   |
| Management fees         |   |                         | — |   |   |   | 1,234 |   |
| Administrative expenses |   |                         | 739     |   |   |   | 868 |   |

----

INDEX

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

INDEX

----

INDEX

|   | ● | The U.S. housing market, historically a significant contributor to economic growth and wealth, continues to be depressed.  On April 26, 2011 the S&P/Case-Shiller Home Price Report for February  2011 was released and reported that single family home prices fell for an eighth consecutive month.  The report went on to state “Recent data on existing-home sales, housing starts, foreclosure activity and employment confirm we are still in a slow recovery.” |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The National Association of Credit Managers reported that the manufacturing and Services Index Levels for March 2011 declined. “There were sharp declines in sales, new credit applications, dollar collections and the amount of credit extended. . .” |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Institute of Supply Management reports that its non-manufacturing index declined in March 2011 as compared to February 2011. Similarly the Institute of Supply Management’s manufacturing index declined in March 2011 as compared to February 2011. Significantly both indices reported declines in new orders. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The MLFI-25 Monthly Leasing and Finance Index published by the Equipment Lease and Finance Association reported increases in both delinquencies and charge-offs in March 2011 as compared to February 2011. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

|                                                                               |   | March 31, |    |   | December 31, |   |
|------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                                                               |   | 2011      |    |   | 2010         |   |
| Investment in leases and loans, net                                                |   | $         | 293,038 |   |         | $      | 334,826 |   |
|                                                                               |   |      |    |   |         |   |   |   |
| Number of contracts                                                                |   |      | 12,500  |   |         |   | 12,900 |   |
| Number of individual end users (a)                                                 |   |      | 11,100  |   |         |   | 12,500 |   |
| Average original equipment cost                                                    |   | $         | 60.8    |   |         | $      | 60.9 |   |
| Average initial lease term (in months)                                             |   |      | 57      |   |         |   | 57 |   |
| Average remaining lease term (in months)                                           |   |      | 24      |   |         |   | 27 |   |
|                                                                               |   |      |    |   |         |   |   |   |
| States accounting for more than 10% of lease and loan portfolio:              |   |      |    |   |         |   |   |   |
| California                                                                         |   |      | 14      | %      |         |   | 14 | % |
|                                                                               |   |      |    |   |         |   |   |   |
| Types of equipment accounting for more than 10% of lease and loan portfolio:       |   |      |    |   |         |   |   |   |
| Medical equipment                                                                  |   |      | 23      | %      |         |   | 23 | % |
| Industrial equipment                                                               |   |      | 21      | %      |         |   | 21 | % |
| Restaurant equipment                                                               |   |      | 11      | %      |         |   | 11 | % |
| Types of businesses accounting for more than 10% of lease and loan portfolio: |   |      |    |   |         |   |   |   |
| Services                                                                           |   |      | 46      | %      |         |   | 46 | % |
| Retail trade                                                                       |   |      | 18      | %      |         |   | 18 | % |
| Finance/Insurance/Real Estate                                                      |   |      | 13      | %      |         |   | 13 | % |

| (a) | Located in the 50 states as well as the District of Columbia and Puerto Rico. No other individual end user or single piece of equipment accounted for more than 10% of our portfolio based on the origination amount. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

|                                                                                                     |   |  As of and for the      |    |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                     |   | Three Months Ended March 31, |    |
|                                                                                                     |   |                         |    |   |   |   |   | Change |   |
|                                                                                                     |   | 2011                         |    |   | 2010 |   |   |  $ |   |   | % |   |
|                                                                                                     |   |                         |    |   |   |   |   |   |   |   |   |   |   |
| Investment in leases and loans before allowance for credit losses                                        |   | $                            | 303,892 |   |   | $ | 479,443 |   |   | $ | (175,551 | ) |   |   | (37 | )% |
| Less: allowance for credit losses                                                                        |   |                         | 10,854  |   |   |   | 13,920 |   |   |   | (3,066 | ) |   |   | (22 | )% |
| Investment in leases and loans, net                                                                      |   | $                            | 293,038 |   |   | $ | 465,523 |   |   | $ | (172,485 | ) |   |   | (37 | )% |
| Weighted average investment in direct financing leases and loans before allowance for credit losses |   | $                            | 141,590 |   |   | $ | 328,991 |   |   | $ | (187,401 | ) |   |   | (57 | )% |
| Non-performing assets                                                                                    |   | $                            | 15,621  |   |   | $ | 10,944 |   |   | $ | 4,677 |   |   |   | 43 | % |
| Charge-offs, net of recoveries                                                                           |   | $                            | 3,549   |   |   | $ | 7,646 |   |   | $ | (4,097 | ) |   |   | — |   |
| As a percentage of finance receivables:                                                                  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for credit losses                                                                              |   |                         | 3.57    | % |   |   | 2.90 | % |   |   |   |   |   |   |   |   |
| Non-performing assets                                                                                    |   |                         | 5.14    | % |   |   | 2.28 | % |   |   |   |   |   |   |   |   |
| As a percentage of weighted average finance receivables:                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs, net of recoveries                                                                           |   |                         | 2.51    | % |   |   | 2.32 | % |   |   |   |   |   |   |   |   |

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INDEX

|                                                                |   |   |    |   |   |   |    | Increase (Decrease) |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|---------------------|--------|
|                                                                |   | 2011   |    |   | 2010   |   |    |  $             |   |   | % |   |
| Revenues:                                                           |   |   |    |   |   |   |    |                |   |   |   |   |   |
| Interest on equipment financings                                    |   | $      | 5,763   |   |   | $      | 9,952   |                |   | $ | (4,189 | ) |   |   | (42 | )% |
| Rental income                                                       |   |   | 648     |   |   |   | 756     |                |   |   | (108 | ) |   |   | (14 | )% |
| Gains on sales of equipment and lease dispositions, net             |   |   | 61      |   |   |   | 196     |                |   |   | (135 | ) |   |   | — |   |
| Gain on extinguishment of debt                                      |   |   | 13,677  |   |   |   | — |                |   |   | 13,677 |   |   |   | — |   |
| Other                                                               |   |   | 353     |   |   |   | 382     |                |   |   | (29 | ) |   |   | (8 | )% |
|                                                                |   |   | 20,502  |   |   |   | 11,286  |                |   |   | 9,216 |   |   |   | 82 | % |
|                                                                |   |   |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |   |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Interest expense                                                    |   |   | 6,746   |   |   |   | 6,202   |                |   |   | 544 |   |   |   | 9 | % |
| Losses on derivative activities                                     |   |   | 126     |   |   |   | 1,971   |                |   |   | (1,845 | ) |   |   | — |   |
| Depreciation on operating leases                                    |   |   | 559     |   |   |   | 636     |                |   |   | (77 | ) |   |   | (12 | )% |
| Provision for credit losses                                         |   |   | 4,549   |   |   |   | 5,932   |                |   |   | (1,383 | ) |   |   | (23 | )% |
| General and administrative expenses                                 |   |   | 378     |   |   |   | 604     |                |   |   | (226 | ) |   |   | (37 | )% |
| Administrative expenses reimbursed to affiliate                     |   |   | 739     |   |   |   | 868     |                |   |   | (129 | ) |   |   | (15 | )% |
| Management fees to affiliate                                        |   |   | — |   |   |   | 1,234   |                |   |   | (1,234 | ) |   |   | — |   |
|                                                                |   |   | 13,097  |   |   |   | 17,447  |                |   |   | (4,350 | ) |   |   | (25 | )% |
| Loss before equity in losses of affiliate                           |   |   | 7,405   |   |   |   | (6,161  | )                   |   |   | 13,566 |   |   |   |   |   |
| Equity in losses of affiliate                                       |   |   | — |   |   |   | — |                |   |   | — |   |   |   |   |   |
| Net income (loss)                                                   |   |   | 7,405   |   |   |   | (6,161  | )                   |   |   | 13,566 |   |   |   |   |   |
| Less: Net income (loss) attributable to the noncontrolling interest |   |   | (183    | )      |   |   | (63     | )                   |   |   | (120 | ) |   |   |   |   |
| Net income (loss) attributable to LEAF 4 partners                   |   | $      | 7,222   |   |   | $      | (6,224  | )                   |   | $ | 13,446 |   |   |   |   |   |
| Net income (loss) allocated to LEAF 4’s limited partners      |   | $      | 7,150   |   |   | $      | (6,162  | )                   |   | $ | 13,312 |   |   |   |   |   |

|   | •  | A decrease in interest on equipment financings of $4.2 million. Our weighted average net investment in financing assets decreased to $141.6 million for the period ended March 31, 2011 as compared to $329.0 million for the period ended March 31, 2010, a decrease of $187.4 million (57%). |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

|   | •  | A decrease in our provision for credit losses principally due to a decrease of our equipment financing portfolio. |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------|

|   | •  | Losses on derivative hedging activities include cash payments or receipts relating to our hedging activities and the changes in the fair value of our derivative financial instruments. For the three months ended March 31, 2011, the change in fair value resulted in a non-cash gain of $126,000.  Since the completion of 2011-1 Term Securitization, all of our debt is on a fixed-rate basis generally mitigating our exposure to floating-rate interest rate risk.  Accordingly, we longer own any derivative instruments. |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | A decrease in our management fees as beginning August 1, 2010, our General Partner waived its asset management fees..  The General Partner has waived all future management fees. |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  |   |
|--------|---------------|--------|

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INDEX

|                                      |   | Three Months Ended March 31, |    |
|-------------------------------------------|--------|------------------------------|---------|
|                                      |   | 2011                         |    |   | 2010 |   |
| Net cash provided by operating activities |   | $                            | 3,292   |   |   | $ | 1,021 |   |
| Net cash provided by investing activities |   |                         | 35,820  |   |   |   | 27,812 |   |
| Net cash used in financing activities     |   |                         | (37,667 | ) |   |   | (30,154 | ) |
| Increase (decrease) increase in cash      |   | $                            | 1,445   |   |   | $ | (1,321 | ) |

|                       |   |   |   |     |   |   | Amount      |   |    | Amount of      |   |
|----------------------------|--------|--------|--------|----------|--------|--------|-------------|--------|---------|----------------|--------|
|                       |   | Type   |   | Maturity |   |   | Outstanding |   |    | Collateral (1) |   |
| 2011-1 Term Securitization |   | Term   |   |     | (2)    |   |        | $      | 82,581  |           |   | $ | 89,181 |   |
| 2010-1 Term Securitization |   | Term   |   |     | (3)    |   |        |   | 45,673  |           |   |   | 52,153 |   |
| 2010-3 Term Securitization |   | Term   |   |     | (4)    |   |        |   | 124,521 |           |   |   | 139,341 |   |
|                       |   |   |   |     |   |   |        | $      | 252,775 |           |   | $ | 280,675 |   |

| (1) | Recourse under these facilities is limited to the amount of collateral pledged. |
|-----|---------------------------------------------------------------------------------|

| (2) | The Morgan Stanley term loan matured on August 4, 2010. Subject to negotiations between Morgan Stanley and the Fund, the facility was terminated and paid off at a discount on January 26, 2011 with the proceeds from the 2011-1 Term Securitization, in which 6 classes of asset-backed notes were issued that have varying maturity dates ranging from December 2018 to December 2023. The asset-backed notes totaled $ 96.0 million and bear interest at fixed, stated rates ranging from 1.7% to 5.5% and were issued at an original discount of approximately $6.2 million.  As a result of the securitization and cancellation of the term loan, the Fund recognized a gain on extinguishment of debt of approximately $13.7 million. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On May 18, 2010, a previous lender was paid -off with the proceeds from the 2010-1 Term Securitization in which 3 classes of asset-backed notes were issued that mature on October 23, 2016 and September 23, 2018, respectively. The asset-backed notes totaled $92.7 million and bear interest at a fixed, stated rate of 5% and were issued at an original issue discount of approximately $6.5 million. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | On August 17, 2010, two previous lenders were paid- off with the proceeds from the 2010-3 Term Securitization in which 5 classes of asset-backed notes were issued that mature on June 20, 2016 and February 20, 2022, respectively. The asset-backed notes total $171.4 million and bear interest at fixed, stated rates ranging from 3.5% to 5.5 % and were issued at an original issue discount of approximately $3.7 million. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4 – CONTROLS AND PROCEDURES

ITEM 6 – EXHIBITS

| Exhibit |   |        |
|---------|--------|-------------|
| No.     |   | Description |
| 3.1     |   |        | Certificate of Limited Partnership (1) |
| 3.2     |   |        | Amended and Restated Agreement of Limited Partnership (2) |
| 4.1     |   |        | Forms of letters sent to limited partners confirming their investment (1) |
| 10.1    |   |        | Form of Origination and Servicing Agreement Among LEAF Financial Corporation, LEAF Equipment Finance Fund 4, LP and LEAF Funding, Inc. (1) |
| 10.2    |   |        | Indenture by and between LEAF Commercial Finance Fund, LLC and U.S. Bank National Association (3) |
| 10.3    |   |        | Amended and Restated Limited Liability Company Agreement of LEAF Commercial Finance Fund, LLC(3) |
| 10.4    |   |        | Limited Liability Company Agreement of LEAF Funds Joint Venture 2, LLC (3) |
| 10.5    |   |        | Indenture between LEAF Receivables Funding 2, LLC and U.S. Bank National Association dated as of May 1, 2010 (4) |
| 10.6    |   |        | Indenture between LEAF Receivables Funding 4, LLC and U.S. Bank National Association dated as of July 4, 2010 (5) |
| 10.7    |   |        | Indenture between LEAF Receivables Funding 6, LLC and U.S. Bank National Association dated as of January 6, 2011 |
| 31.1    |   |        | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 31.2    |   |        | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1    |   |        | Certification of Chief Executive Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2    |   |        | Certification of Chief Financial Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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INDEX

----

| (1) | Filed previously as an exhibit to our Registration Statement on Form S-1 filed on March 24, 2008 and by this reference incorporated herein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed previously as an exhibit to Form 8-K on May 8, 2009 and by this reference incorporated herein. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (3) | Filed previously on May 12, 2009 in Post-Effective Amendment No. 1 as an exhibit to our Registration Statement and by this reference incorporated herein. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2010 and by this reference incorporated herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Files previously as an exhibit to our Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2010 and by this reference incorporated herein. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

SIGNATURES

|         | LEAF EQUIPMENT FINANCE FUND 4, L.P. |                                            |
|--------------|-------------------------------------|-------------------------------------------------|
|         | A Delaware Limited Partnership      |                                            |
|         |                                |                                            |   |
|         | By:                                 | LEAF Asset Management, LLC, the General Partner |   |
|         |                                |                                            |   |
| May 16, 2011 | By:                                 | /s/ CRIT S. DEMENT                         |   |
|         |                                | Crit S. DeMent                                  |   |
|         |                                | Chairman and Chief Executive Officer            |   |

| May 16, 2011 | By:    | /s/ ROBERT K. MOSKOVITZ |   |
|--------------|--------|------------------------------|--------|
|         |   | Robert K. Moskovitz          |   |
|         |   | Chief Financial Officer      |   |
|         |   |                         |   |

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