Published on 03.07.2023
Co-investing in philanthropy: an exceptional initiative by an investment fund consortium
To enable the rapid deployment of the Invest for Childhood fund, RAISE has gathered a club of committed investors, currently composed of Ardian, Armen, Astorg, Aurickx Investissement, BC Partners, Capza, CVC, HLD, Parquest, and Qualium.
These investors are committed to proposing one or more co-investment opportunities to the fund in their most promising deals. Thus, the Invest for Childhood fund aims to quickly deploy its assets under management, allowing the two beneficiaries to benefit from this new source of financing as soon as possible.
The fund's specific feature is that a significant portion (50% or 80% depending on the actions) of the capital gains generated by the investments is donated, starting from the first euro, to one, the other, or both supported projects. This is a significant commitment from the LPs (Limited Partners) of the fund - AXA, BPCE Assurances, COVEA, Groupama, ODDO BHF, and several family offices - who have made this completely unprecedented initiative by private equity actors possible. For its launch, the Invest for Childhood fund announces an initial closing of 25 million euros.
In addition to the donations made by the investors, RAISE Conseil, as the fund's management company, will contribute half of its annual management fees to the beneficiaries.
Commitment at the heart of the model: enabling projects to scale up
The capital gains generated by this fund will revolutionize the financing mechanism for the two partners, the association Espérance Banlieues and Institut Imagine, and thus contribute to key strategic developments for them. By using private equity mechanisms for the common good, the Invest for Childhood fund aims to help both organizations scale up and multiply their impact.
The two beneficiaries of the fund work in two fundamental areas of childhood: education and health.
- Espérance Banlieues, the first network of independent schools in priority neighborhoods of urban policy, works to prevent school dropout from an early age and addresses issues of educational and cultural equity. Its specificity lies in combining educational programs with the acquisition of social skills, French codes, and culture. The organization strives to ensure that every child can find their place in society and grow with confidence and a desire to succeed.
With the Invest for Childhood fund, Espérance Banlieues aims to open four new schools in priority fragile areas in France by 2030 and double the number of students by opening new classes, especially in preschool. The association also aims to support pedagogical innovation and strengthen the impact of each of its schools.
"Engaging in the education of our children is the best investment we can make: it is an investment in the future citizens. Thanks to RAISE for providing its expertise, enabling the development of this venture, and mobilizing its network!" says Eric Mestrallet, founder of Espérance Banlieues.
- Institut Imagine is the leading European center for research, education, and care for genetic diseases. By accelerating research, Institut Imagine aims to improve the lives of children and families affected by genetic diseases. To achieve this goal, it relies on four complementary and interdependent missions: research, innovative care, education, and research valorization. By 2026, Institut Imagine aims to double the number of diagnosed children and the availability of treatments for them.
With the Invest for Childhood fund, Institut Imagine will recruit new scientific talents from the best international teams, continue to acquire state-of-the-art equipment, and implement new ambitious research programs addressing a significant public health issue affecting over 3 million people in France.
"Thanks to RAISE, the Invest for Childhood fund, its investors, and the management companies actively participating in this extraordinary project, this exceptional and generous initiative will allow us to practice the best science today to build the best medicine of tomorrow, and thus win our battle for the benefit of sick children," says Stanislas Lyonnet, Director of Institut Imagine.
A fund already in deployment with an initial deal
Thanks to the commitment of its partners, the Invest for Childhood fund has already begun its deployment with an initial co-investment alongside Capza. This operation in Magellan Consulting, a strategy, management, and IT consulting firm specializing in digital transformation, will enable the company to accelerate its development, particularly through a targeted and ambitious acquisition policy.
"I am very proud to see the birth of this sharing fund 'Invest for Childhood' today, a project I have dreamt of for several years. While RAISE is at the heart of a committed model, supporting French and European entrepreneurs and helping transform companies in our economy, we wanted to imagine a model capable of directly supporting associations for the common good. This project is now possible thanks to the generosity of our shareholders, who have decided to share their capital gains to support these associations, and thanks to the commitment of the partner management companies, who will enable rapid deployment of this fund and thus provide opportunities for these two extraordinary associations to work for even more children," explains Gonzague de Blignières, co-founder of RAISE.
"As the leading French insurer and a major investor in the French economy, we believe that finance has a key role to play in creating a more inclusive society and sustainable growth. We are delighted to participate in this particularly innovative initiative led by RAISE and to support these associations in their development," adds Gilbert Chahine, CEO of Mutuelles AXA.
As part of this operation, RAISE was advised by Jones Day on a pro bono basis:
- Florence Moulin, Partner, and Marine L'Hostis (Investment Funds/Private Equity), and
- Emmanuel de La Rochethulon, Partner (Tax Law).
+33 6 67 06 80 26
+33 6 79 39 03 94
Established in 2013 by Clara Gaymard and Gonzague de Blignières, and with €1.9 billion in assets under management, RAISE Group is a pioneer in responsible finance. As a mission-driven company with a unique model of sharing success in support of entrepreneurs, RAISE operates through three business divisions: investment companies in companies of all sizes and sectors - RAISE Invest, RAISE Ventures, RAISE Seed for good, RAISE Impact, RAISE REIM, and RAISE Infrastructure; innovation hubs - RaiseLab and Domaine La Plume; and a foundation dedicated to startups: RAISE Sherpas.
RAISE Group is based on a financing mechanism that combines profitability and generosity, as the investment teams donate 50% of their incentives to finance the RAISE Sherpas endowment fund. This pioneering system in France creates a virtuous ecosystem that brings together major shareholder groups and institutional investors, mid-cap companies, and startups.
For more information, visit: www.raise.co