Detailed Description of Portfolio Companies of Fund I

Drug Eleven Holdings Co., Ltd
(Holding company of Drug Eleven Co., Ltd.)

Features Established in Kagoshima prefecture in 1989 and grew into a regional drug store chain with 175 stores (Mar 06) in Kyushu and Okinawa area. Defines itself as “specialty store for health and beauty” with customer orientation and counseling capability in order to differentiate it from large scale discounting drug stores.
Investment Pattern MBI & Secondary buy-out from another fund
Investment Theme Increase the value of the company by supporting the growth strategy for expanded business lines at the transition from the turn-around phase under the previous sponsor to the autonomous growth phase
Date of Exit May 2007
Exit Pattern Trade sale to JR Kyushu
Exit Story Within a year from the investment, stronger business position and significant improvement of profitability were achieved to secure a growth trend. Then, Polaris could sell the entire holdings to JR Kyushu as the company was strategically important for JR Kyushu’s retail business which was their third business pillar following railroads and development of Hakata station. The company would benefit from JR Kyushu’s ownership by way of new stores at station premises and implicit credit support in financing.