The Brain Fund, a private equity co-investment fund, aims to secure sustainable funding for Paris Brain Institute to support its research teams’ projects and drive the development of new treatments for nervous system disorders. Managed by the Impact Partners firm, it has today concluded its first funding round, having raised €25 million.
Established at the initiative of the Paris Brain Institute Friends Committee, a committee of twenty high-level figures whose mission is to boost public donations to the Institute, the Brain Fund has active support from Jean-Charle Decaux, CEO of JCDecaux, Maurice Lévy, President of the Executive Board of Publicis Groupe, Eddie Misrahi, President of Seven2, and Serge Weinberg, President of Weinberg Capital Partners and Paris Brain Institute Treasurer. The purpose of the fund is to make 10 to 15 co-investments in three years alongside major buyout funds in Europe. 80% of the returns generated by the fund will go to Paris Brain Institute, while 20% will go to fund subscribers.
The purpose of the Brain Fund is to provide Paris Brain Institute with a new source of funding, in addition to its support from sponsors, donors and testators, and funding from competitive grants secured by researchers or the Institute itself.
“For us, this first fund is a sign that, just like philanthropy, private equity will become increasingly important in research”, says Gérard Saillant, President of Paris Brain Institute. “We are hoping that this new investment pillar will enable us to launch vital research projects. Neurodegenerative diseases such as Alzheimer’s, Parkinson’s, multiple sclerosis and amyotrophic lateral sclerosis, as well as psychiatric disorders and epilepsy- and stroke-induced disorders are a major public health challenge. These challenges need creative, effective and personalized solutions. This is something that cannot be accomplished in an uncertain environment: to achieve our major research ambitions, we also need a long-term financial vision”.
AN EFFICIENT AND SUSTAINABLE FINANCIAL STRUCTURE
The Brain Fund is designed to provide sustainable support for research, based on the “endowment” model of major American foundations. It will mobilize successive private equity funds of €25–30 million for co-investment via LBOs alongside major investment funds, with no management fees or outperformance premium for the Brain Fund.
Twenty-four investors have subscribed to this first fund, including institutional investors such as Banque des Territoires, large companies such as Publicis, Klesia and Engie, and many family offices and entrepreneurs. It has already completed or initiated five co-investment transactions alongside HLD, IK Partners, Keensight Capital and Seven2.
“This success proves that the model is attractive to investors who want to actively support Paris Brain Institute’s mission to discover pioneering therapeutic solutions for nervous system disorders while making a small return on investment”, says Eddie Misrahi, member of Paris Brain Institute’s Friends Committee. “It has also been well received by several management companies, which have already offered, or are ready to offer, co-investment opportunities”.
All of the legal work required to establish the fund and make the investments has been done pro bono by the teams at Willkie Farr & Gallagher LLP in Paris.