Exit of the Year – Small Cap
(Equity commitment on entry – below $50 million)

Canva (Blackbird Ventures)

Blackbird Ventures made its first realisation from Canva, an Australia-headquartered design and workplace collaboration platform, in August 2023 through a AUD 150m (USD 96m) share sale to growth equity investors. A portion of the shares were held by the firm’s debut fund, which invested AUD 3m in Canva in 2013. Blackbird went on to participate in multiple subsequent rounds (the exit represented 3% of its overall holding) as Canva’s valuation hit AUD 40bn in September 2021. Corrections in listed technology stocks meant the exit transacted at a valuation of AUD 25.5bn, but Blackbird remains up 337x on the 2013 valuation.

Japan Drilling (Aspirant Group)

Aspirant Group sold Japan Drilling (JDC), the country’s only offshore drilling contractor, to JX Nippon Oil Exploration Corporation for USD 185m in March 2020, generating a return of 5.3x. The private equity firm acquired JDC in 2019 and put in additional capital in 2021 as part of a business reorganisation after a long period of stagnation in the offshore drilling market. In addition to operating a drilling fleet, JDC is involved in offshore wind power installation. Business development during Aspirant’s holding period included an expansion into carbon capture and storage, whereby JDC drills wells to inject and store C02 underground.

Lunit (Legend Capital)

Legend Capital completed its exit from Lunit, a Korean developer of artificial intelligence-based diagnostic tools for cancer screening, in June 2023 through public market sales. The proceeds amounted to around KRW 127bn (USD 93.4m), giving the VC investor an 8.5x return. The VC firm held 6.45% when it started selling its position. Legend participated in three funding rounds for Lunit worth about USD 100m between 2018 and 2021. The company listed on KOSDAQ in July 2022. Lunit is best known for its Insight and Scope devices, which can detect chest abnormalities and breast cancer with up to 99% accuracy.

Welfare Suzuran (NSSK)

NSSK exited Japan-based nursing care provider Welfare Suzuran to Ricoh Leasing, a Tokyo-listed leasing company, in December 2022, generating a 3x multiple and a 45% IRR. The PE firm acquired Welfare Suzuran in 2017 through its flagship buyout fund and debut impact fund. There was double-digit growth in revenue and EBITDA during the holding period. The number of facilitates under management jumped by 25% - funded by internal working capital – while margins and occupancy rates both increased. On the ESG side, the share of female employees rose to 78% and the share of women in management positions rose to 46%.

Yaruki Switch Group (Advantage Partners)

Advantage Partners completed its exit from Yaruki Switch Group, a Japan-based operator of private tutoring schools, in May 2023 when TBS Holdings paid JPY 27.7bn (USD 186m) for a 78% stake. This included a 46.9% position held by Advantage. The PE firm acquired a majority interest in Yaruki in 2017 and led development of the brand and expansion of the service. Net sales and EBITDA both grew strongly, with the latter outpacing the former due to a focus on opening franchised schools. Advantage made three partial exits to different groups in 2022. Its return on the investment was around 9x.