Information on the Target

Eliance Holding, commonly known as Eliance, is a prominent provider of aerial emergency and firefighting services based in Spain. The company specializes in delivering essential aerial services for critical activities such as firefighting, medical emergencies, search and rescue operations, as well as engineering and maintenance functions. Eliance employs approximately 409 individuals and boasts an extensive fleet of 72 aircraft, which are utilized for vital public missions.

Operating under availability-type and medium-term contracts with around 30 public authorities, predominantly in Spain, Eliance has positioned itself as a key player in the niche aerial service industry. The company’s commitment to serving critical social needs underscores its importance and reliability in managing emergency situations efficiently.

Industry Overview in Spain

The aerial emergency and firefighting services industry in Spain has experienced significant growth due to increasing demands for effective disaster response mechanisms. Spain's diverse geography, characterized by its forests and mountains, presents unique challenges in managing wildfires and emergencies, making aerial services indispensable in safeguarding life and property.

Moreover, the Spanish government has prioritized emergency preparedness, which has led to increased investments in firefighting and rescue capabilities. Legislative measures supporting public safety initiatives further contribute to the industry's expansion, creating a favorable environment for service providers like Eliance to grow and innovate.

Alongside firefighting, the medical emergency services sector continues to evolve, necessitating enhanced operational capabilities in aerial responses. The combination of public investment and private sector expertise is critical in ensuring that emergency services are adequately equipped to address the challenges posed by natural disasters and public health emergencies.

Overall, the aerial services sector in Spain is set for continued expansion, driven by ongoing investment in public safety infrastructure and a growing realization of the importance of rapid response capabilities in crisis situations.

The Rationale Behind the Deal

RiverRock's investment in Eliance aligns strategically with its investment philosophy of targeting resilient assets. Eliance's operations fall within the category of defensive investments, which provide stability and consistent returns, making them appealing in the current economic landscape. By partnering with existing shareholders, GED Capital and Himilcon, along with CEO Juan Carlos Martínez Saiz, RiverRock aims to accelerate Eliance's growth trajectory and expand its service delivery both within Spain and internationally.

This investment not only enhances RiverRock's portfolio but also creates synergies with its current holdings in Public Private Partnership projects across Europe, offering substantial yield potential while serving critical public needs.

Information About the Investor

RiverRock European Capital Partners LLP is a distinguished alternative asset management firm specializing in private markets and real assets. With headquarters in London and offices across several major European cities, including Paris, Milan, Madrid, and Frankfurt, the firm is well-positioned to leverage regional market opportunities. RiverRock is authorized and regulated by the Financial Conduct Authority in the UK, ensuring compliance and robustness in its operations.

The RiverRock Brownfield Infrastructure Fund 1 (RBIF1), with a substantial capital base of €195.5 million, focuses on equity participations in government-related infrastructure assets across Western Europe. The fund is dedicated to long-term investments and partnerships that yield stable returns, particularly in sectors aligned with availability-based revenues.

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This investment represents a strategic move with significant potential for both parties involved. Eliance's operational framework, aligned with public safety and emergency response, ensures a steady demand for its services. RiverRock's approach to investing in essential services underscores its commitment to generating long-term value for its stakeholders.

Furthermore, the decision to invest in an industry that has shown resilience amidst economic fluctuations demonstrates RiverRock's confidence in Eliance's management and operational model. The backing of experienced partners further enhances credibility and positions Eliance for sustained growth.

However, the investment landscape does come with risks; maintaining operational efficiencies in a highly regulated environment while managing public contracts can be challenging. Still, the anticipated growth in aerospace and emergency services mitigates some of these concerns, paving the way for potential lucrative returns.

Overall, this deal is not only an intelligent investment within RiverRock's portfolio but also a significant endorsement of Eliance’s operational competence and future growth prospects.

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