Citadel Capital tells a top industry gathering in New York that despite the civil unrest that has swept through the region during the past few months, the positive fundamentals that created the MENA region's compelling investment opportunities are intact
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), the leading private equity firm in the Middle East and Africa with US$ 8.6 billion in investments under control, presented an overview of the civil unrest that has swept through North Africa and the Middle East to an audience of limited partners at Private Equity International’s (PEI) Emerging Markets Investor Forum in New York last week.
In a session entitled “Building Investor Confidence in Time of Crisis,” Citadel Capital addressed top-level LP’s with the message that: While popular uprisings in the MENA region will lead to increasing global energy prices, a weakening of local currencies and reduced levels of FDI in the short-term, the simple fact is that the positive fundamentals that created the region’s compelling investment opportunities in the past remain intact and could lead to tremendous opportunities once the situation stabilizes.
There is no denying that political uncertainty still prevails in much of the region, but the firm’s view of the current situation is long-term positive. As governments shift towards more democratic systems, transparency will increase, economies will be run more efficiently, corruption will be eliminated and subsidies will be better directed under the scrutiny of elected parliaments.
The firm expects returns on its existing portfolio to be negatively impacted in the short-term, but the new opportunities that are likely to arise in the next 12-18 months will mitigate that exposure to a great extent.
Citadel Capital’s diverse investments in industries including mining, cement, transportation, food and energy make it very well positioned to withstand the region’s economic fallout. With more than US$ 2.5 billion in cash returns generated for co-investors since 2004 (on investments of US$ 650 million), the firm’s unparalleled track record, diversification and size will keep ahead of the game as a more stable and level playing field begins taking shape in the MENA region.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm 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. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.6 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital 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 (2005-2010, 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