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Citadel Capital reports 5.3 per cent growth in total net asset value per share

Citadel Capital, a private equity firm in the Middle East and Africa, has reported a 5.3 per cent rise in total net asset value per share for the second quarter of 2010.

The portfolio net asset value rose by 1.7 per cent and the asset management value rose by 12.5 per cent.

“The second quarter of 2010 was about delivering on our promises to investors,” says chairman and founder Ahmed Heikal. “In our last business review, we pledged to fine-tune our balance sheet by recovering loans that we had extended to platform companies to bridge LP delays in answering capital calls. We also set targets to close the debt package for the Egyptian Refining Company, to deliver four more greenfield projects and to achieve first close on the Mena and Africa joint investment funds. We have delivered on all fronts.”
 
With no exits in the second quarter, the firm reported net income of USD0.05m (EGP0.3m) on revenues of USD6.8m (EGP38.5m) on a standalone basis.
 
In the second quarter of 2010 Citadel Capital delivered four greenfield projects, in addition to the first quarter completion of two others.

Projects included the soft-launch of Designopolis, the Middle East and Africa’s first home furnishings destination under platform company Bonyan; ASEC Ready Mix, a concrete production and distribution plant in Upper Egypt under platform company ASEC Holding; Al-Takamol Cement, a Sudanese cement plant, also under ASEC Holding; and Berber for Electrical Power, a power-generation plant in Sudan under platform company Taqa Arabia that will provide Al-Takamol with all of its electricity needs.
 
Citadel Capital recovered significant bridge financing extended to platform investments. Loans to platform companies declined 48.8 per cent to EGP221.7m.
 
The firm made new equity investments in platforms including Wafra (Sudanese agriculture), Nile Logistics (river transport and port management), East Africa Railways and the Egyptian Refining Company, among others.
 
Total assets under management at the end of Q2 2010 were stable quarter-on-quarter in dollar terms at USD3.7bn (EGP20.9bn).
 
Total invested AUM as at 30 June 2010 rose a net 2.3 per cent (or EGP366.7m) to USD2.9bn (EGP16.6bn).

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