Intracellular cholesterol transporter which acts in concert with NPC1 and plays an important role in the egress of cholesterol from the lysosomal compartment. Unesterified cholesterol that has been released from LDLs in the lumen of the late endosomes/lysosomes is transferred by NPC2 to the cholesterol-binding pocket in the N-terminal domain of NPC1. May bind and mobilize cholesterol that is associated with membranes. NPC2 binds cholesterol with a 1:1 stoichiometry. Can bind a variety of sterols, including lathosterol, desmosterol and the plant sterols stigmasterol and beta-sitosterol. cholesterol(in) = cholesterol(out) Interacts with NPC1 (via the second lumenal domain) in a cholestrol-dependent manner. Interaction with cell-surface M6PR mediates endocytosis and targeting to lysosomes. Binds cholesterol in a hydrophobic pocket; there are no hydrogen bonds between the sterol and the protein. Belongs to the NPC2 family.