Post on 11-Feb-2018
Lenders, investors, and developers seek independent
assessments of critical project, regulatory and commercial
risk to assure investment returns or craft their divestment
strategies.
Castalia’s transport, water, telecoms and energy expertise
helps investors identify good deals, make sound
investment or divestment decisions, and manage risk.
Mission
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Who We Are
• Castalia is an independent, international economic and financial
advisory firm with broad experience in transport, energy, telecoms
and water
• Our mobile team of 40 professionals is based out of our offices in
New York, Washington, D.C., Sydney (Australia), Wellington (New
Zealand), Paris (France), and Bogotá (Colombia)
• Castalia’s mission is to apply our real world, practical, market-
tested knowledge of project risk and return in the context of
competitive, regulatory, cost, and demand drivers
• We are a global firm with local presence and knowledge. We offer
unbiased, objective advice without the influence of outside
shareholders or interests.
www.castaliacapitaladvisory.com
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Castalia Track Record
• Advised on privately financed infrastructure projects worldwide totaling more than
US$70 billion across the transport, energy, and water sectors
• Advised on assignments in more than 60 countries in the Americas, Africa, Asia,
Europe, Oceania, and the Caribbean
• Worked on successful transactions for private investors, developers, governments,
utilities, and multilateral banks.
Many of our engagements are from repeat clients, demonstrating our dedication and the
quality, commitment and value of our work product.
www.castaliacapitaladvisory.com
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Our Work Has
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• Enabled our clients achieve successful, closed financings
• Better positioned our clients’ investments for long-term financial
viability
• Provided assurance to lenders and investors
• Provided unbiased assessments of project, environmental and
regulatory risk and return profiles
• Identified opportunities for capturing or creating value, and
assisted our clients shape their hold or divestment strategies
• Featured global best practices, combined with local and sector
knowledge.
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Feasibility
analysis
Project risk
Regulatory risk
Value for money
Services During the Entire Project Lifecycle
Castalia’s expertise helps our clients identify good deals, make sound
investment decisions, and manage project, regulatory, and government risk at
every phase of the development lifecycle.
www.castaliacapitaladvisory.com
Due diligence
Valuation support
Lenders’ reports
Transaction
support
Idea generation
Project sourcing
Deal origination
Due diligence
Valuation
Lenders’ reports
Business case
Commercial case
Negotiation
Transaction
Launch and
Execution
Post-transaction
close
Operational
Performance and
Monitoring
Optimizing
revenue
Managing risk
Investment
Decision
Screening
Operations CASTALIA’S EXPERTISE
- Project economic drivers and financial analysis
- Regulatory and contract analysis, risk register
- Market analysis
- Global knowledge
Divestment
Advice
Commercial
Assessment
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Full Suite of Services
CLIENT TRANSACTION TEAM Legal
Accounting
Financial Advisor/ Investment Bank
Risk OpEx/OM&R CapEx Environmental
Pricing/ Tariffs
Demand/ Revenue
Operations Competition/
Regulation CASTALIA VALUE ADDED
Castalia global and sectoral expertise Source &
Manage
Best of breed asset specialists
www.castaliacapitaladvisory.com
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Broad Asset Coverage
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• Transportation Roads, airports, railways, ports
• Utilities and Pipelines Power transmission and distribution, oil and gas
pipelines, water systems, waste collection and
treatment
• Generation Thermal and renewable, long term contract and
merchant generation
• Communications Telecommunication towers, cable networks, satellite
systems
• Social infrastructure Hospitals, schools, stadiums, prisons, courts,
subsidized housing
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Energy Sector Experience of Our Senior Professionals
www.castaliacapitaladvisory.com
$3.4 billion AES Corporation
Coal and gas-fired generation assets acquisition Philippines
Market and Strategy Advisor 2007
Ilijan and St. Rita Power Plants
$1 billion Queensland Investment Corporation
Purchase of 50% stake of electricity distribution utility
New Zealand
Market Advisor 2008
Powerco Power Utility
$1.2 billion Hastings Fund Management
Purchase of 41% of electricity
transmission company Australia
Regulatory Advisor
2012
Electranet
$3.2 billion
Origin Energy
Purchase of 2880 MW power station plus retail assets of Integral Energy
and Country Energy Australia
Competition Advisor 2011
Eraring Power Station and Retail Assets
$630 million Genesis Energy
Acquisition of the 185MW Tekapo A&B hydropower stations
New Zealand
Market and Financial Advisor 2010
Tekapo Hydropower Plant
$3 billion Indonesia Infrastructure Guarantee
Fund
1,800MW IPP sale Indonesia
Risk Appraisal 2012
1,800MW Coal-Fired Power Plant
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Port Experience of Our Senior Professionals
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$250 million Port of New Orleans
Napoleon Avenue container terminal P3
US
Concession Advisor 2010
Port of New Orleans Container Terminal
$150 million Manatee County Port Authority
Options for capital improvement and terminal expansion
US
Financial and Concession Advisor 2012
Port of Manatee
$2.4 billion Ontario Teachers’ Pension Plan
Container terminal acquisition Canada, US
Transaction Advisor 2007
North American Container Terminals, NY/NJ/Vancouver
$600 million Advent International
Acquisition of an active concession Brazil
Equity Advisor 2011
Port of Paranaguá Container Terminal
$800 million Lyttelton Port of Christchurch
P3 Port Merger New Zealand
Economic Advisor 2009
Port of Otago and Lyttelton Port
$2 billion QIC, CPPIB & AimCo
Port privatization Australia
Regulatory Advisor 2013
Port Botany and Port Kembla
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Airport Experience of Our Senior Professionals
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$1 billion Advent International
International airport concession Brazil
Equity Advisor 2012
Guarulhos International Airport
$250 million International Finance Corporation
Options for concessioning four airports Jamaica
Concession Advisor 2010
Norman Manley Airport
$600 million Highstar Capital/Asur Consortium
P3 airport concession Puerto Rico
Equity and Lenders Advisor 2013
Luis Muñoz Marin International Airport
$300 million UBS
Concession for a second runway Colombia
Transaction Advisor 1993
El Dorado International Airport
$187 million Christchurch International Airport
Commercial Strategy for airport pricing New Zealand
Commercial Advisor 2010
Christchurch International Airport
$135 million National Investment Bank of Jamaica (Now Development Bank of Jamaica Ltd.)
International airport privatization Jamaica
Regulatory Advisor 2000
Sangster International Airport
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Surface Transport Experience of Our Senior Professionals
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$900 million Transurban & Fluor
Highway P3 transaction US
Lenders’ Due Diligence Advisor 2012
I-95 High Occupancy Express, Managed Lanes (HOT/HOV)
$900 million Inter-American Development Bank
160km toll road development Brazil
Technical, Market, and Financial Advisor
2002
Sistema Anchieta-Imigrantes Toll Road (Lot 22)
$2.1 billion Macquarie & Skanska
Extension of MLK Freeway US
Lenders’ Technical and Traffic Advisor 2012
Midtown/Downtown Tunnel, MLK Freeway
$2.5 billion
Indonesia Infrastructure Guarantee Fund
Preparation of a coal hauling railway Indonesia
Financial Advisor 2012
Central Kalimantan Coal Railway
$2.6 billion Government of Victoria
Franchise reorganization and concession retender
Australia
Contract Advisor 2002
Australian Rail and Tram Franchises
$500 million Inter-American Development Bank,
Financial Security Assurance, & Dexia
P3 toll road development Chile
Transaction Advisor 2002
Santiago-Valparaíso-Viña del Mar Toll Road
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Water Sector Experience of Our Senior Professionals
www.castaliacapitaladvisory.com
$250 million
Multilateral Investment Guarantee Agency
Evaluation of a water supply project Jamaica
Financial and Economic Advisor 2010
Jamaican Water Supply Project
$100 million Indonesia Infrastructure
Guarantee Fund
Bulk water P3 project appraisal Indonesia
Financial Advisor 2012
$2.3 billion Ontario Teachers’ Pension Plan &
Hastings Funds Management
Desalination plant asset acquisition Australia
Regulatory Advisor 2011
Sydney Desalination Plant
$300 million Inter-American Development Bank,
Obrascon Huarte Lain Group
Reverse osmosis desalination plant Chile
Technical and Market Due Diligence Advisor 2002
Antofagasta Seawater Desalination Plant
Bandar Lampung Bulk Water Supply Project
$197 million
Hawke’s Bay Regional Council
Demand forecast for irrigation project New Zealand
Strategic Advisor 2012
Ruataniwha Plains Water Storage Project
$750 million International Finance Corporation
Wastewater treatment P3 Egypt
P3 Advisor 2008
New Cairo Wastewater Treatment Plant PPP Project
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Why Engage Us?
www.castaliacapitaladvisory.com
You can rely on a Castalia report.
Our commercial and technical insights help clients assess value, mitigate risks, and structure workable procurement and financing strategies leading to acquisitions, divestments, and Public Private Partnerships
We step in quickly and work to the pace and granularity required by the investor and lender community
We have the bandwidth for a full diligence effort given our global reach and access to best of breed, independent asset specialists
We’re independent, objective, and have global best practice experience
We have a track record of helping our clients take projects to market
16 www.castaliacapitaladvisory.com
Yuval Cohen, Managing Director
Dr. Yuval Cohen is a project financial and economic advisor with over 27 years of experience in built
infrastructure throughout North, Central and South America, Central Europe, and the Middle East. With hands on
experience advising on closed transactions on projects currently in operation, his financial, economic, technical,
business case assessments have supported over US$15 billion in closed capital raised for roads, airports, rail,
water/wastewater treatment and ports/container terminal acquisitions in North and South America and Europe,
with an enterprise value several times that amount.
Yuval played a key role in many of the largest privately financed infrastructure transactions that have recently
achieved financial close in the Americas. He was lead equity advisor to the Highstar Capital/Asur consortium
awarded the 40-year concession for the Luis Marín Muñoz, San Juan Airport in Puerto Rico that reached financial
close in February 2013, the first US-regulated airport to undergo a P3.
He was lead technical and traffic advisor for the US$2.1 billion Midtown Tunnel P3, and on the US$0.9 billion I-95
Express Lanes P3, both in Virginia, both achieving financial close in 2012. He led the equity advisory team for
the largest (US$2.4 billion) syndicated North American port financing in 2007, Ontario Teachers’ acquisition of
four container terminals in NY/NJ and Vancouver. He also served on other award winning transactions in South
America, including the transport deal of the year in Chile, the Santiago-Valparaíso-Viña del Mar toll road, and the
Rodoanel, Colinas, Tiete and Nascentes Toll Roads in Brazil. More recently, he led the equity advisory team to
the winning bidder for the Goethals Bridge P3 in New York/New Jersey.
David Ehrhardt, Managing Partner and Chief Executive
Mr. David Ehrhardt is CEO of Castalia, a firm specializing in policy, economic, and strategic business consulting.
With 30 years of advisory work in more than 60 countries worldwide, Castalia is a leading expert on P3
transactions in infrastructure and has worked on a wide variety of P3 programs and projects. We have
determined effective P3 structures, risk allocation arrangements, and policies for managing financial obligations
associated with P3 transactions.
David is a recognized expert on P3 with more than 20 years of experience with P3s. He has designed,
implemented or advised on P3s and privatizations in Australia, New Zealand, Europe and many other countries.
In the transportation sector he has designed or managed five P3 projects totaling US$4.4 billion in value. In water
he has advised on ten P3 projects worth over US$1 billion in total. In energy and telecommunications he has
designed or managed more than eight P3 transactions with a value in excess of US$11.6 billion.
Our Senior Team
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Our Senior Team
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Alex Sundakov, Managing Partner and Executive Director
Mr. Alex Sundakov is Executive Director of Castalia. He joined Castalia after a career spanning the New
Zealand Treasury, the International Monetary Fund and serving as the Director of the New Zealand Institute
of Economic Research. Alex is based in Sydney, Australia.
Alex brings a unique combination of public policy leadership and commercial experience. Since 2003, he
has advised on numerous transactions for private clients, national and municipal governments, and
international institutions. In the water sector, he recently led a team that provided regulatory advice to
Hastings Fund Management and the Ontario Teachers’ Pension Plan, the successful bidder for the US$2.4
billion Sydney Desalination Plant. Alex also recently advised the Indonesia Infrastructure Guarantee Fund on
the appraisal of a US$100 million guarantee to a prospective Build-Operate-Transfer (BOT) contractor of a
bulk water supply project in Lampung.
In energy in the last five years alone, Alex has advised on deals totaling over US$13 billion for some of the
biggest private sector clients in Australia and New Zealand.
Gary Conway, Director
Mr. Conway is an experienced corporate finance professional with 20 years of experience advising large
corporations, governments and investors on strategies reviewing, developing, financing, and restructuring
large infrastructure and resource related projects across a number of jurisdictions. He has a strong focus on
providing business strategy and operations advisory leadership and implementing high impact strategic
initiatives. Gary has a sound understanding of risk management frameworks, methodologies and risk
allocation practices.
Gary is a resilient, outcome focused negotiator with a strong commercial acumen. He is experienced in
contract management including developing, structuring and negotiating large, complex contracts and
transactions with multiple stakeholders. Gary is proficient at leading numerous transactions simultaneously
and able to galvanize multi-disciplinary teams to deliver superior results, often within tight time frames and
budget.
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Castalia Staff Deal Experience
www.castaliacapitaladvisory.com
Name Transaction Value
(US$ billion) Country Role Work Tasks Status
Midtown / Downtown Tunnel 2.1 USA Buy-side Lenders' technical and traffic advisor for Macquarie and Skanska consortium for the extension of the MLK Freeway. Achieved financial close in April 2012
Closed
I-95 High Occupancy Express 0.9 USA Buy-side Lenders' due diligence advisor to Transurban and Fluor for PPP for I-95 highway. Achieved financial close in July, 2012
Closed
Denver Eagle Fastracks P3 Rail Concession - Rail Transit Denver
1.6 USA Buy-side Lenders' technical advisor to RTD (Macquarie and Fluor), equity investors Lloyds Banking Group and John Laing
Closed
I-495 Capital Beltway HOT Lanes 2.2 USA Buy-side Lenders' due diligence advisor, construction oversight provider during post-close period to Transurban and Fluor for PPP for I-495 highway
Closed
Development of Ruzizi III Hydropower Plant
0.6 Burundi, Rwanda,
DR Congo Sell-side
Financial advisor on a consortium engaged by Energie des Grands Lacs (EGL) to structure and procure a 147MW hydropower plant. Scheduled financial close in 2013
Imminent Close
Eraring Power Station and Retail Assets 3.3 Australia Buy-side Competition Advisor for Origin Energy on bid packages for state-owned electricity retail and generation businesses. Transaction closed in March, 2011
Closed
Powerco Acquisition 1 Australia, New
Zealand Buy-side
Market advisor for Queensland Investment Corporation (QIC) for the purchase of 50% of Powerco from Babcock and Brown Infrastructure. Achieved financial close in 2008.
Closed
Sydney Desalination Plant Privatization 2.4 Australia Buy-side
Advisor to Hastings Fund Management (HFM) and the Ontario Teachers’ Pension Plan (OTPP), the successful bidder for the Sydney Desalination Plant (2011)
Closed
Ninh Binh - Bai Vot Expressway Concession 2.6 Vietnam Sell-side
Financial Advisor to the Ministry of Transport on the design of a Build-Operate-Transfer transaction for a 220km greenfield expressway (2013). Financial close scheduled for 2018
Pending Close
Corredor Pacifico Highway Concession 2.6 Central America Sell-side
Financial advisor to Inter-American Development Bank for the design of the financing structure for a 2,300 km road in 2011. Deal did not reach financial close
Did not reach financial close
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Castalia Staff Deal Experience
www.castaliacapitaladvisory.com
Name Transaction Value
(US$ billion) Country Role Work Tasks Status
Tekapo Hydropower Plant 0.6 New Zealand Buy-side
Financial advisor to Genesis Energy on the acquisition of the 185MW Tekapo A&B hydropower stations from Meridian Energy. The negotiations were concluded successfully in 2011
Closed
North American Container Terminals 2.4 USA, Canada Buy-side
Transaction advisor to Ontario Teachers' Pension Plan for the acquisition of container terminals in Canada and the US from OOIL, North America. Largest syndicated deal in North America, overall North American Deal of the Year 2007 (Project Finance Magazine)
Closed
Port of Paranagua Container Terminal 0.6 Brazil Buy-side Equity advisor to Advent International for the acquisition of concession for container terminal at Brazil's third largest port. Achieved financial close in 2011
Closed
Luis Munoz Marin International Airport 0.6 Puerto Rico Buy-side Equity and lenders advisor to the Highstar Capital and Asur Consortium for successful P3 airport concession. Achieved financial close in February, 2013
Closed
Guarulhos International Airport 1 Brazil Buy-side Equity advisor to Advent International for the acquisition of concession for Guarulhos International Airport. Advent was not awarded the bid
Unsuccessful Bid
El Dorado International Airport 0.3 Colombia Buy-side Transaction advisor to UBS for a concession for a second runway in El Dorado international airport. Achieved financial close in 1993
Closed
Sangster International Airport 0.1 Jamaica Buy-side Advisor to the National Bank of Jamaica (NIBJ) for successful concession of Sangster International Airport to MBJ Airports Limited in 2000
Closed
Central Kalimantan Coal Railway 2.5 Indonesia Buy-side Financial advisor to the Indonesia Infrastructure Guarantee Fund (IIGF) in the preparation of a coal hauling railway transaction in 2012
Pending Close
Sistema Anchieta-Imigrantes Toll Road 0.9 Brazil Buy-side Advisor to IDB and other senior lenders on a bid to develop a 160km toll road in Sao Paulo (Lot 22). Reached financial close in 2002
Closed
Santiago-Valparaiso-Vina del Mar Toll Road
0.5 Chile Buy-side
Advisor to IDB, FSA, and Dexia for toll facility involving new tunnels, refurbishment of existing tunnels, major viaducts and so on. 2002 Project Finance Magazine Transport Deal of the Year
Closed
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Castalia Staff Deal Experience
www.castaliacapitaladvisory.com
Name Transaction Value
(US$ billion) Country Role Work Tasks Status
Lot 12 Castello-Raposo Toll Road, Viaoeste 0.7 Brazil Buy-side
Transaction advisor to IDB and senior lenders, all services leading up to and following financial close including monitoring ongoing construction, maintenance and operations of the 170-km long toll road
Closed
Madden Trans-Isthmus Corredor Norte with extension to Madden
0.3 Panama Buy-side Transaction advisor (financial, T&R and technical) to Citigroup arranging financing, and to Odebrecht for this major 58-km toll road refinancing
Closed
Linha Amarela Toll Road, Rio de Janeiro 0.5 Brazil Buy-side
Transaction advisor to OAS Construtora concessionaire seeking to develop concession for major new start-up toll road in the Municipality, performing T&R, technical and financial services
Closed
Rosario-Victoria Bridge 0.5 Argentina Buy-side
Transaction advisor to IDB and senior lenders on behalf of Impregilo, all services leading up to and following financial close for this 60-km wide new bridge, including key environmental services
Closed
Development of Rail and Tram Franchises 2.6 Australia Buy-side
Contract Advisor to Government of Victoria on Melbourne's train and tram development through franchises reorganization or concession retender in 2002. Government awarded Yarra Trams with a new concession
Closed
Development of 360MW Power Plant Tender
0.6 Jamaica Buy-side Transaction advisor to Armorview Holdings in bid to develop a 360MW power under contract with Jamaica OUR
Pending Close
Strategy for Development of Lignite-to-Liquids Plant
8 New Zealand Buy-side Economic and strategic advisor to Solid Energy NZ (largest state-owned coal company) on the development of lignite-to-liquids plant in 2008.
Pending Close
Acquisition of Ilijan and St. Rita Power Plants
3.4 Philippines Buy-side
Market and strategy advisor to AES for the acquisition of Mirant Global's 2.2GW of coal and gas-fired generation assets in the Philippines. Plants were sold to a Marubeni-led consortium in 2007
Closed
Acquisition of Masinloc Power Plant 0.9 Philippines Buy-side
Market advisor to AES for the successful acquisition of the Masinloc 600MW coal-fired plant from the Power Sector Assets and Liabilities Company (PSALM) in 2007
Closed
Acquisition of Ambuklao and Binga Power Plants
0.2 Philippines Buy-side
Market advisor to AES for the successful acquisition of the Ambuklao and Binga 200MW hydropower plant from PSALM. Plants were sold to SN Aboitiz Power in 2007
Closed
Acquisition of Calaca Power Plant 0.4 Philippines Buy-side Market advisor to AES for the acquisition of the Calaca 400MW coal-fired power plant from PSALM. Plant was sold to Suez-Tractebel in 2007
Closed
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Castalia Staff Deal Experience
www.castaliacapitaladvisory.com
Valuation of Jamaica Public Service Company Limited (JPS)
0.6 Jamaica Buy-side
Valuation advisor to DB&G—largest investment bank in Jamaica—in possible acquisition of 80% interest in JPS, the country’s national electricity utility. DB&G ultimately chose not to bid
Unsuccessful Bid
BOT Lampung Bulk Water Supply Project 0.1 Indonesia Sell-side
Financial advisor to the Indonesia Infrastructure Guarantee Fund (IIGF) on the appraisal of a guarantee to prospective Build-Operate-Transfer (BOT) contractor of a bulk water supply project in 2012
Pending Close
Antofagasta Seawater Desalination Plant 0.3 Chile Buy-side Advisor to IDB, Obrascon Huarte Lain Group on major new seawater reverse osmosis plant construction. Achieved financial close in 2002
Closed
Concession Contract for Water Supply in Metro Iloilo
0.3 Philippines Sell-side Transaction advisor to the Board of the Metro Iloilo Water District (MIWD) on its attempt to introduce a concession contract in 2009
Pending close
Development of Salto Y-Y Power Plant 0.5 Nicaragua Buy-side Market and financial advisor to sponsor of a 25MW hydropower plant in Nicaragua in 2007. Work included advice on capital raising
Pending Close
Acquisition of Duracom Power Barge 0.2 Philippines Buy-side Technical and market advisor to Deustche Bank for the acquisition of a 242MW heavy fuel oil (HFO) power barge in 2007
Pending Close
Acquisition of New South Wales Ports 2 Australia Buy-side
Advisor to QIC, CPPIB & Aimco bidding for the privatization of the Ports of Botany and Kembla in New South Wales in 2012. Consortium failed to win the bid
Unsuccessful Bid
Name Transaction Value
(US$ billion) Country Role Work Tasks Status
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New York T +1 (646) 632 3770
200 Park Avenue, Suite 1744
New York, New York 10166
Washington T +1 (202) 466 6790
1747 Pennsylvania Avenue NW
Suite 1200
Washington, D.C. 20006
Sydney T +61 (2) 9231 6862
36-38 Young Street
Sydney, NSW 2000
Australia
Wellington T +64 (4) 913 2800
Level 2, 88 The Terrace
PO Box 10-225
Wellington
New Zealand
Paris T: +33 (1) 45 27 24 55
7 Rue Claude Chahu
Paris 75116
France
Bogotá T: +571 6466626
Carrera 7 No. 99-53
Torre 1, Oficina 1424
Bogotá, Colombia
Alex.Sundakov@castalia-advisors.com
Sydney, Australia
Ben.Gerritsen@castalia-advisors.com
Wellington, New Zealand
Roland.Leroy@castalia-advisors.com
Paris, France
Yuval.Cohen@castalia-advisors.com
New York, USA
David.Ehrhardt@castalia-advisors.com
Washington, D.C., USA
Cristina.Cano@castalia-advisors.com
Bogotá, Colombia
For more information please contact:
advisory@castaliacapital.com