Detailed Description of Portfolio Companies of Fund II

Aucnet Inc.

Features Trailblazed the virtual auction services for B to B used car auction market and secures a unique position in the used car business with 7,000 service subscribers among used car dealers and 50% market share in terms of the number of cars auctioned in Japan.
Investment Pattern Going-private MBO jointly executed by Aucnet management, Polaris and other business partners.
Investment Theme Enable a drastic change of business structure to make it less dependent on the saturating used car auction services by going private, and strengthen corporate governance by Polaris’s involvement in the management as neutral and professional shareholders with the goal of maximize the value of the company on a medium term basis.
Date of Exit April 2011
Exit Pattern Sale of the entire holdings in IDSP Co., Ltd. ("IDSP"), which owns 100% of Aucnet, Inc., to IDSP through a stock repurchase transaction
Exit Story After the investment, Aucnet reduced its cost of operations, started distribution-related information services such as "Shared Inventory" and expanded into non-auto auction services for flowers, used PCs and brand items so that it could deal with the impact of the Great Financial Crisis and the steep appreciation of yen. As a result of these efforts, Aucnet achieved significantly better results in 2010. Aucnet and Polaris Fund II have been discussing how to cope with the new business environment after the Great Financial Crisis and recently came to an agreement for a revision of the exit plan of Polaris Fund II. Previously Aucnet targeted for an IPO in several years with Polaris' support, but now decided to pursue long-term growth strategies on its own with its strong business franchise and solid financial position built in two and a half years since MBO. Polaris Fund II respected the decision and agreed to step out.