Citadel Capital Reports First Quarter 2010 Results

Leading private equity firm reports 4.1% growth in principal investments. Existing investments are on track as the firm continues an incremental build-out of platform companies and prepares to complete greenfield investments.

(Cairo, Egypt) — Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), the leading private equity firm in the Middle East and Africa, announced today its standalone financial results for the first quarter of 2010, reporting a 4.1% quarter-on-quarter rise in principal investments. Citadel Capital continues to note improved performance at its current investments, with its Platform Companies completing two greenfield projects in the quarter on time and on budget; four additional projects are on track to begin operations in the second quarter.

With no significant exits in the first three months of the year, Citadel Capital reported net earnings of US$ 0.3 million (EGP 1.5 million) in 1Q10 on revenues of US$ 7.7 million (EGP 42.3 million).

Total assets under management (committed) were stable from the end of 4Q09 to the end of the first quarter of 2010 at US$ 3.7 billion (EGP 20.4 billion), while total invested assets under management rose 2.3% (or US$ 64.5 million) to US$ 2.9 billion (EGP 16.2 billion) in the same period. Limited partners answered capital calls worth a combined US$ 32.9 million (EGP 181.9 million), accounting for 51% of new invested AUM. Total invested AUM at the end of 1Q10 included US$ 1.9 billion (EGP 10.5 billion) of third-party fee-earning assets under management, a rise of 1.0% from the end of 4Q09.

The firm had total investments under control of US$ 8.3 billion (EGP 45.5 billion) as of 31 March 2010.

“Citadel Capital made substantial progress last quarter, growing our principal equity investments while reporting a declining balance of loans to platform companies as targeted,” said Citadel Capital Chairman and Founder Ahmed Heikal. “We maintained a close eye on business plans at our existing investments, delivering profitability while bringing greenfield projects to completion and restocking our deal pipeline with two new investments.”

Note to Editors: Please click here to download the full version of this press release, which includes summary financials as well as text and graphics explaining the total asset valuation methodology.

First Quarter 2010 Highlights

I. Citadel Capital as a Principal Investor (Own Balance Sheet)

  • Total principal investments (including convertibles and interest-bearing loans to Platform Companies) stood at US$ 788.3 million (EGP 4.4 billion) at the end of 1Q10, a 4.1% rise over the previous quarter.
  • New investments by Citadel Capital as a principal investor in 1Q10 stood at US$ 30.1 million (EGP 165.3 million), all in existing Platform Companies (primarily in upstream oil and gas, transportation and logistics, and agriculture). The firm reported a declining balance of both interest-bearing loans and convertibles to platform and portfolio companies, while investing new equity of US$ 31.6 million (EGP 173.8 million).
  • Gains from the sale of principal investments from a partial exit of ASCOM stood at US$ 1.7 million (EGP 9.6 million) in 1Q10 compared with nil in the same quarter the previous year.

II. Asset Management Business

  • Total assets under management (committed) in Citadel Capital’s 19 Opportunity-Specific Funds (OSFs) were unchanged in 1Q10 from US$ 3.7 billion (EGP 20.4 billion) at the end of the fourth quarter of 2009.
  • Total invested AUM rose 2.3% quarter-on-quarter to US$ 2.9 billion (EGP 16.2 billion). Limited partners (LPs) accounted for 51% of new invested AUM.
  • Total invested third-party AUM rose 1.6% in 1Q10 to US$ 2.1 billion (EGP 11.8 billion). New LP investments in the period were weighted toward oil and gas, transportation and logistics, and specialty real estate.
  • Total third-party fee-earning AUM stood at US$ 1.9 billion (EGP 10.5 billion) at the end of 1Q10, a rise of 1.0%.
  • Net new invested AUM from both Citadel Capital and the LPs in its OSFs stood at US$ 63.2 million (EGP 347.8 million) in 1Q10. Citadel Capital invested equity of US$ 31.6 million (EGP 173.8 million) in 12 OSFs, while LPs invested equity of US$ 32.9 million (EGP 181.0 million) in six OSFs.
  • Revenue from advisory fees stood at US$ 4.5 million (EGP 24.8 million), on par with those recorded in the same period last year.

III. Financial Highlights

 

  • Citadel Capital revenue in 1Q10 reached US$ 7.7 million (EGP 42.3 million), a 69.3% increase from US$ 4.5 million (EGP 25.0 million) the previous year.
  • EBDITA for the period stood at a negative US$ 2.0 million (EGP 10.8 million), unchanged from the same quarter of last year.
  • Net income after taxes in 1Q10 totaled US$ 0.3 million (EGP 1.5 million) against a loss of US$ 3.7 million (EGP 20.3 million) in 1Q09.
  • Debt-to-equity ratio stood at 22% as at 31 March 2010.

—Ends—

Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.

For more information, please contact:

Ms. Ghada Hammouda
Head of Corporate Communications
Citadel Capital (S.A.E.)

g...@qalaaholdings.com (click to reveal this email)

Tel: +20 2 2791-4440 • Fax: +20 22 791-4448
Mobile: +20 16 662-0002