Tuesday, August 5, 2008

Arcapita Profits Increase by 90 Percent to $362.2 Million

BUSINESS WIRE --Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, with Atlanta-based subsidiary Arcapita Inc., today announced record profits of $362.2 million for fiscal 2008, the year ending June 30, 2008, representing a 90 percent increase on the annualized figure of $190 million recorded in fiscal 2007.

Overall since inception, Arcapitas net income has grown at a compounded annual growth rate of 40.6 percent. Total operating revenue for fiscal 2008 was $648.5 million, an increase of 59.1 percent compared to the figure of $407.5 million achieved in fiscal 2007. Arcapitas balance sheet footing at the end of June 2008 was $5.1 billion, up 35 percent on the $3.8 billion at the end of fiscal 2007. Worldwide, the bank now employs more than 300 people, a third of whom are located outside of the banks headquarters in its offices in Atlanta, London and Singapore.

Arcapitas Chief Executive Officer, Atif A. Abdulmalik stated We have witnessed considerable economic turbulence in much of the worlds economy during the last 12 months, but Arcapitas international network of resources has allowed us to move quickly and with flexibility to maintain a good flow of attractive investment opportunities for our investors. We made 13 new investments during the year with a total transaction value of more than $8 billion, bringing our funds under management to almost $5 billion.

Arcapita Executive Director Charlie Ogburn, head of the Atlanta office, added, Each of our markets has experienced challenges in the last 12 months, and this has been most pronounced here in the United States. Nonetheless, we have made several substantial investments, as well as a number of successful exits, and we continue to see value opportunities in each of our business lines of private equity, real estate, asset-based investments and venture capital.

During the year, Arcapita exited from six investments, and together with recapitalizations during the period, was able to return more than $1.1 billion to investors.

Significant transactions overseen by Arcapitas Atlanta office during 2008 include the acquisition of Varel International Energy Services Inc., PODS Inc. and the Bosque power facility in Texas. The Arcapita venture fund completed new investments in Intelleflex Corporation, Fidelis SeniorCare, Inc. and Aspen Aerogels, Inc., as well as their first exit, with the sale of Navini Networks. In addition to the new investments, there were three exits from the US portfolio, with the sale of Transportation Safety Technologies, Inc., Working Rx and TLC Health Care Services, Inc.


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