Detailed Description of Portfolio Companies of Fund II
|Features||Started business to provide Japanese large corporations with the effective ERP solution that was popular in Europe and the U.S.. Has risen to the industry leading player in Human Resources and Payroll category. Increased investment to develop the comprehensive product line that includes Accounting package and Supply Chain Management package to compete against SAP and other non-Japanese vendors. Differeciates itself with the training program including the undergraduate student internship that is not common in Japan.|
|Investment Pattern||Going-private MBO
Friendly tender offer from the SPC owned by Polaris K&C Partnership that Polaris Private Equity Fund II, L.P. and Polaris Karita Investment Fund invest in.
|Investment Theme||For the transition to the global and full-product line ERP solution vendor that can compete against SAP and other non-Japanese vendors with the faster and greater investment, make the company private to hedge against the stock price fluctuation and to enable simple and fast decision making. Enhance finance and corporate planning function for the growth strategy.|
|Date of Exit||October 2017|
|Exit Pattern||Trade sale of the entire holdings to a fund managed by ACA Investments Pte. Ltd.|
|Exit Story||After MBO and taken private, Works Applications Co., Ltd. continuously allocated significant management resources to product development focusing onwith mainly “HUE” and customer acquisition/support to address the declining pace of growth while the company had stable annual fee revenue from the existing customers. As a result, the revenue grew 2.2 times during the 6 years period of Polaris’s ownership where Polaris dispatched several officers to support enhancement of corporate governance and business administration and procurement of additional funds. Since the company aimed to do an IPO in a couple of years after its new product would become profitable, Polaris decided to sell its entire holdings to a financial buyer which agreed with and would support such an IPO strategy.|