Finding Opportunity in Adversity

Citadel Capital Managing Director tells LP's at PEI's Emerging Markets Forum how the Middle East and Africa's leading private equity firm managed to raise over US$ 300 million of long-term capital despite challenging global and local market conditions

“Citadel Capital has a proven history of raising funds in challenging times, as it illustrated during the 2008-09 financial crisis and again this year amid the threat of a double-dip recession and the economic and political fallout from the Arab Spring,” said Citadel Capital Managing Director Amr El Barbary. “But despite these adverse conditions we have closed a US$ 175.6 million capital increase via rights issue and raised a further US$ 319.2 million in equity and senior debt in the nine-month period up to September 2011.”

El Barbary delivered a keynote speech on how to find opportunities during times of instability to an audience of high-level global fund managers and institutional investors at PEI’s Emerging Markets Forum held in London on November 1st and 2nd.

In his keynote, El Barbary outlined how the economic fundamentals that saw the MENA region and Africa out-perform global growth averages prior to the Arab Spring remain intact.

These fundamentals and competitive advantages — together including a large, fast-growing consumer market some 1.3 billion strong; a large workforce that is responsive to training; substantial natural resource wealth and proximity to key global markets — will only be enhanced as democracy takes root.
“Investors looking for high returns in the coming period need to look beyond the developed markets. Emerging markets are home to outstanding private equity firms and very attractive investment opportunities, particularly in the Middle East and Africa,” said El Barbary.

Citadel Capital, the leading private equity firm in the Middle East and Africa with US$8.7 billion in investments under control in 15 industries spanning 15 countries, has emerged as the partner of choice for sophisticated international investors seeking exposure to compelling investment opportunities in the region. The firm has demonstrated innovative and unique fundraising strategies throughout 2011. The successful close of its US$175.6 million capital increase despite challenging global and local market conditions is a ringing endorsement from key regional and international shareholders of Citadel Capital’s long-term fundamentals.

“During this critical transitional period you can still make money,” said El Barbary. “With a strong balance sheet and investments that are firmly on the right side of macroeconomic trends, we feel confident that we will have the flexibility we need to respond to market developments in the coming period,” he added.

—Ends—

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 OSFs control 19 Platform Companies with investments worth more than US$ 8.7 billion in 15 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.2 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 (2006-2011, 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