Involved in degradation of small peptides. Digests preferentially peptides containing an aliphatic or hydrophobic residue in P1' position, as well as methionine, leucine or phenylalanine in P1 position of ester substrate. Release of a C-terminal amino acid with broad specificity. Heterodimer of two subunits of 32 kDa and 19 kDa derived from the precursor protein and linked by a disulfide bond. Lysosome-like vacuoles. Belongs to the peptidase S10 family.