Frequently Asked Questions About Citadel Capital

What is Citadel Capital?
Citadel Capital is the leading private equity firm in the Middle East and Africa. In addition to its Cairo, Egypt, headquarters, the firm has an office in Algiers, and is opening offices in Nairobi, Kenya. Citadel Capital is also opening an office in Dubai to be closer to its limited partners. The firm focuses primarily on control investing in emerging markets in the Middle East and Africa. Citadel Capital’s 19 Opportunity-Specific Funds control Platform Companies in 15 industries with more than US$ 8.3 billion in investments under control in industries ranging from cement and agrifoods to transportation and energy.

When was Citadel Capital founded?
The firm was founded in early 2004 by Ahmed Heikal and Hisham El-Khazindar.

How is the leadership team structured?
In addition to founder Ahmed Heikal (Chairman) and co-founder Hisham El-Khazindar (Managing Director), the firm’s executive committee includes managing directors Karim Sadek, Ahmed El Houssieny, Marwan Elaraby and Ahmed El Shamy.

The firm employs 66 professionals, including a 38-strong team of investment professionals who have long relationships with key players in the regional business and investment communities. Those relationships have helped the firm source most of its transactions on a proprietary or advantaged basis.

How is the firm structured?
Citadel Capital’s investment professionals are largely divided into three teams: debt, equity and transactions. The investment professionals are supported by professionals in other disciplines including legal affairs, communications, information technology, project management and human resources.

What is your total paid-in capital?
Citadel Capital’s total paid-in capital stands at EGP 3.308 billion (US$ 606 million) as of 31 December 2009.

What are Opportunity-Specific Funds?
Citadel Capital prefers to raise equity on a transaction-by-transaction basis and so creates an Opportunity-Specific Fund (OSF) for each deal instead of raising a pool of money for a permanent fund. Each OSF controls a Platform Company that is generally specific to one industry.

What’s the difference between a Platform Company and a Portfolio Company? How many of each do you have?
Citadel Capital Platform Companies stand alone and serve as engines for regional expansion; each is controlled by Citadel Capital and its co-investors through an Opportunity-Specific Fund. Portfolio Companies are under the control of the Platform Companies. We currently have 19 Platform Companies and more than 100 Portfolio Companies.

How much of your own money do you invest in each deal?
We commit 10-20% of the equity component to every Opportunity-Specific Fund.

Do you contribute to community development programs?
Yes. Investment in the communities in which we do business is a priority for Citadel Capital.

We have contributed more than US$ 20 million to community development programs since 2004, excluding the personal philanthropy of the firm’s partners and staff. The firm is proud to have established the Citadel Capital Scholarship Foundation, a nonprofit organization run by an independent Board of Directors. The Foundation sends university graduates to study for Master’s degrees and PhDs at some of the world’s most prestigious universities on condition that they return to work in Egypt upon graduation.

Citadel Capital is also establishing a foundation that will focus building and developing Egyptian schools targeting lower-middle income segments of the population in both urban and rural settings.