Citadel Capital Reports Full-Year 2009 Results

Strong rise in net asset value, revenues and profits at Middle East and Africa's leading private equity firm

(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 financial results for the fiscal year 2009, reporting a total net asset value per share (TNAVPS) of US$ 2.83 (EGP 15.50) as of 31 December 2009. The total net asset value (TNAV) captures i) the present value of Citadel Capital’s principal investments in the 19 Opportunity-Specific Funds that it controls as well as ii) the asset-management component of the business.

Citadel Capital had total assets under management (committed) of US$ 3.7 billion (EGP 20.2 billion) as of 2009, of which total invested assets under management were US$ 2.9 billion (EGP 16.2 billion), up 9.5% from US$ 2.6 billion (EGP 14.8 billion) the previous year. These include US$ 1.9 billion (EGP 10.5 billion) of third-party fee-earning assets under management in addition to investments of US$ 757.2 million (EGP 4.2 billion) of its own balance sheet in its transactions.

The firm had total investments under control of US$ 8.3 billion (EGP 45.5 billion) as of year-end.

For the year ending December 2009, Citadel Capital reported net earnings of US$ 38.1 million (EGP 211.4 million), a 806.7% increase from the previous year, on revenues of US$ 79.2 million (EGP 438.9 million).

“We are very pleased not just to have recorded a substantial gain in the net asset value of our portfolio in the last quarter of the year alone, but also to have grown both our top and bottom lines on the full year,” said Citadel Capital Chairman and Founder Ahmed Heikal. “This is particularly significant in light of the impact of the global financial crisis on markets and valuations across our Middle East and Africa footprint, which meant the year just past was not conducive to substantial exits, which are the primary drivers of earnings in our industry.”

New investments in 2009 included Wafra (agriculture in Sudan, representing 2.2% of new investments), Africa Railways (transportation in Kenya and Uganda, representing 9.7% of new investments), and Tawazon (solid waste management in Egypt and the Middle East, representing 4.4% of new investments). The Africa Railway investment came as the firm began deploying what it expects will be US$ 200-400 million in new equity in East Africa in 2010-12.

Citadel Capital recorded EGP 271.4 million (US$ 48.9 million) in gains from the sale of some of its principal investments in FY09, a 37.4% rise over EGP 197.5 million the previous year. Sales included a partial exit of 6% of ASEC Holding and United Foundries, on-market sales of ASCOM shares and the spin-off of Sphinx Private Equity Management to Pharos Capital, a Portfolio Company of Citadel Capital’s Finance Unlimited Platform Company.

Since 2004, Citadel Capital has generated cash returns of more than US$ 2.5 billion to its shareholders and the co-investors in its Opportunity-Specific Funds.

“The year just ended was a challenging one for our industry across the world, but Citadel Capital has thrived,” said Heikal. “All of our existing investments are very much on track, and we see the coming two years as offering unparalleled opportunities.”

These earnings results are the first Citadel Capital has released since the firm listed on the Egyptian Stock Exchange in December 2009.

Citadel Capital’s 2009 standalone financial results and management’s discussion of the factors affecting performance are now available for download at

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.


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$ 757.2 million (EGP 4.2 billion) at year end, a 24.0% rise over FY08.
  • The portfolio net asset value (PNAV) of Citadel Capital’s principal investments in the 19 Opportunity-Specific Funds (OSFs) it controls stood at US$ 1.2 billion (EGP 6.8 billion) as of December 2009, a rise of 10.5% from 30 September 2009. PNAV per share (PNAVPS) stood at US$ 1.89 (EGP 10.33) at year-end.
  • New investments by Citadel Capital as a principal investor in FY09 stood at US$ 151.0 million (EGP 830.0 million), broken down as 28% to new platforms, 18% in existing platforms, 8% in additional investments in existing oil and gas convertibles and 46% in interest-bearing loans to Platform Companies in the amount of US$ 71.2 million (EGP 391.7 million).
  • Gains from the sale of principal investments from three partial exits stood at US$ 48.9 million (EGP 271.4 million), a 37.4% rise over US$ 35.6 million (EGP 197.5 million) in FY08.

II. Asset Management Business

  • Total assets under management (committed) in Citadel Capital’s 19 Opportunity Specific Funds (OSFs) rose 4.6% to US$ 3.7 billion (EGP 20.2 billion) in FY09 compared to US$ 3.5 billion (EGP 19.3 billion) the previous year.
  • Total invested assets under management rose 9.5% year-on-year to US$ 2.9 billion (EGP 16.2 billion) from US$ 2.6 billion (EGP 14.8 billion) in FY08.
  • Total invested third-party assets under management rose 7% to US$ 2.1 billion (EGP 12.0 billion), up from US$ 2.0 billion (EGP 11.2 billion) the previous year.
  • Total third-party fee-earning assets under management stood at US$ 1.9 billion (EGP 10.5 billion) at year end.
  • New invested assets under management from both Citadel Capital and the limited partners (LPs) in its OSFs stood at US$ 262.1 million (EGP 1.4 billion) in FY09. Of that total, US$ 151.0 million (EGP 830.0 million, or 57.6%) was contributed by Citadel Capital as a principal investor and US$ 111.11 million (EGP 608.9 million, or 42.4%) was contributed by LPs.
  • Revenue from advisory fees stood at EGP 103.6 million (US$ 18.7 million) in FY09, up 42.5% from EGP 72.7 million (US$ 13.1 million) the previous year. Revenue from Citadel Capital’s carried interest in its limited partners’ proceeds from exited or partially-exited investments was nil, as it was in FY08.
  • Asset management value (AMV), which captures the present-day value of Citadel Capital’s asset management business, stood at US$ 0.62 billion (EGP 3.4 billion) at year end 2009, a 10.9% rise from 9M09.
  • Asset management value per share (AMVPS) stood at US$ 0.94 (EGP 5.17) at year end.

III. Total Net Asset Value

  • Total net asset value (TNAV) of Citadel Capital, which captures both the value of the firm’s principal investments (PNAV) and of the asset management business (AMV), was US$ 1.9 billion (EGP 10.3 billion) for the year ending December 2009, a rise of 10.9% year-on-year.
  • Total NAV Per Share (TNAVPS) was US$ 2.83 (EGP 15.50) at year end.

IV. Financial Highlights

  • Citadel Capital revenue in FY09 reached US$ 79.2 million (EGP 438.9 million), a 59.7% increase over US$ 49.6 million (EGP 274.9 million) the previous year.
  • EBDITA for the period stood at US$ 38.4 million (EGP 213.2 million), a 227.6% rise from US$ 11.7 million (EGP 65.1 million) in FY08.
  • Net income after taxes in totaled US$ 38.1 million (EGP 211.4 million), a 806.7% increase from US$ 4.2 million (EGP 23.3 million) the previous year.
  • Debt-to-Equity Ratio stood at 22.4% as at 31 December 2009.


Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm focusing on building regional platform investments throughout Africa and the Middle East in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 18 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$ 2.4 billion in cash returns to its co-investors and shareholders, 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

For more information, please contact:

Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.) (click to reveal this email)

Tel: +20 2 2791-4440 begin_of_the_skype_highlighting              +20 2 2791-4440      end_of_the_skype_highlighting • Fax: +20 22 791-4448
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