Information on the Target

RiverRock has successfully acquired a significant minority stake in Eliance Holding, a prominent provider of aerial services critical to essential public domains, such as firefighting, medical emergencies, search and rescue, and engineering maintenance. Eliance operates with a dedicated workforce of approximately 409 employees and manages a fleet of 72 specialized aircraft. The company's operations are primarily governed by availability-type and medium-term contracts with around 30 public authorities, predominantly located in Spain.

Under the leadership of CEO Juan Carlos Martínez Saiz, Eliance is poised for growth. The partnership with RiverRock, along with existing shareholders GED Capital and Himilcon, aims to enhance Eliance's operational capabilities and strategically elevate its presence both in Spain and internationally.

Industry Overview in Spain

The aerial services industry in Spain is witnessing significant evolution, driven by increased demand for services that ensure public safety and emergency response. The sector is highly specialized, catering to a variety of critical functions such as firefighting and medical evacuation, making it a vital component of national and regional emergency infrastructure.

Spain's geographical diversity presents both challenges and opportunities for aerial service providers. The varying landscapes necessitate tailored solutions for search and rescue operations and disaster management. As climate change continues to impact natural disasters, the demand for reliable aerial services is likely to grow in response to the need for rapid and efficient emergency support.

Additionally, governmental investments in public-private partnerships (PPPs) are facilitating growth in the sector. These partnerships are designed to enhance public capabilities and resources available during crises, promoting collaboration between government agencies and private entities, such as Eliance, to optimize response efforts.

The regulatory environment also plays a critical role in shaping the aerial services industry. Compliance with strict safety standards and operational regulations ensures that providers like Eliance maintain their competitive edge while fostering public trust. This adherence not only bolsters their reputation but also encourages investments from stakeholders who prioritize safety and reliability.

The Rationale Behind the Deal

This acquisition aligns seamlessly with RiverRock's super-core investment strategy, highlighting the defensive nature and yield potential of Eliance's operations. The investment supports RiverRock's objective to enhance its portfolio of 24 Public Private Partnership projects across France, Spain, and the Netherlands, which already provide substantial returns to shareholders.

By partnering with Eliance, RiverRock aims to accelerate growth in a sector characterized by resilience and a consistent demand for essential services. This strategic investment positions RiverRock to capitalize on Eliance's expansion opportunities both locally and beyond Spain, ultimately driving financial performance and strategic alignment.

Information About the Investor

RiverRock European Capital Partners LLP is a reputable alternative asset management firm that specializes in private market investments and real assets. Headquartered in London, RiverRock maintains a robust presence across Europe with offices in Paris, Milan, Madrid, and Frankfurt. The firm is regulated by the Financial Conduct Authority in the UK, ensuring high standards of governance and compliance.

The RiverRock Brownfield Infrastructure Fund 1 (RBIF1), which has successfully raised €195.5 million, is dedicated to investing in governmental infrastructure assets within the Euro area. Its focus lies on operational investments that contribute to sustainable development while delivering stable, long-term yields to the firm's stakeholders.

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This investment in Eliance by RiverRock appears to be a prudent decision, reflecting a strategic alignment with current market needs and the potential for lucrative returns. The aerial services sector is gaining prominence, particularly due to its pivotal role in public safety and emergency response, which remains in constant demand.

The partnership with existing shareholders and management reinforces Eliance's growth trajectory and operational capabilities, positioning the firm to adapt to evolving industry dynamics. Furthermore, the backing from RiverRock's established infrastructure fund provides Eliance with the necessary resources to expand its market presence and address the growing needs of public authorities.

Moreover, the defensive nature of Eliance's services contributes to its attractiveness as an investment, especially in uncertain economic climates. The diversification of revenue streams through contracts with multiple public authorities reduces risk and enhances revenue stability, making it an appealing addition to RiverRock's existing portfolio.

Overall, RiverRock's strategic investment in Eliance is not only timely but also aligns with their long-term investment philosophy, promising potential rewards ahead for both the firm and its stakeholders.

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