Citadel Capital investments up $761m
Cairo, May 6, 2012
Citadel Capital, a leading private equity firm in the Middle East and Africa, has reported an 8.7 per cent year-on-year rise in total investments under control to $9.5 billion last year.
The firm said assets under management (AUM) rose 6.3 per cent to $4.3 billion during 2011.
With no exits in the year, Citadel Capital reports a standalone net loss of $18.3 million for 2011 on revenues of $11.6 million compared with a net loss of $49.7 million the previous year, it said.
In the year ending December 31, 2011, despite the prevailing economic turmoil regionally and globally, Citadel Capital added $761.1 million in new investments under control. Included in that figure is $256.2 million in new AUM and $504.9 million in new debt, the company said.
“Despite substantial headwinds from the economic fallout attendant to the Revolution, we raised nearly three-quarters of a billion dollars in new equity and debt for our investments, decisively shored up our balance sheet at the Citadel Capital level, implemented decisive cash preservation measures, and undertook a program of closer operational oversight of our platform and portfolio companies,” said Citadel Capital chairman and founder Ahmed Heikal.
“Our success on these fronts sees us enter 2012 on a strong footing as we look to rebalance our portfolio through the divestiture of non-core assets, freeing capital to fuel growth at our core investments,” he noted.
Also in 2011, Citadel Capital’s principal investments in its own transactions rose 8.9% to US$ 941.0 million (EGP 5.4 billion), while the firm added a further US$ 325.6 million to its balance sheet through a US$ 175.6 million capital increase and US$ 150 million in new debt guaranteed by the US Overseas Private Investment Corporation. Drawdown on the OPIC funds took place in 1Q12.
The firm has also completed the refinancing of its pre-existing $175 million debt facility to better suit the planned pace and tenor of its investments, it said.
“Citadel Capital’s priority for 2012 is to maximise growth of our core platform and portfolio companies. We have secured new investment and debt for key investments including Rift Valley Railways in Kenya and Uganda, Sudan and South Sudan agriculture play Wafra, and Nile Logistics in Egypt, among others,” said Heikal.
“Our emphasis in the coming months is thus on financial close for the Egyptian Refining Company, finalising regulatory procedures for fuel bunkering platform Mashreq, obtaining the building permit for our 3.5 MTPA cement plant in Algeria, inaugurating our 2 MTPA cement facility in Egypt, completing the turnaround of NOPC / Rally Energy, closing the sale of National Petroleum Company Egypt, and reducing execution risk across our portfolio,,” Heikal added. - TradeArabia News Service