Palo Santo grew out of Daniel Goldberg's earlier Bridge Investments network and focuses on next-generation mental health treatments, aiming to build therapies that fit within the existing healthcare and insurance system rather than chasing decriminalization trends or quick stock listings, and it favors biotech-heavy, patent-protected compounds over classic psychedelic assets alone. The fund sets aside an unusually large share of capital for follow-on investments in its top companies, is backed by a scientific advisory team with deep pharmacology expertise, and has seen portfolio companies acquired by major pharmaceutical companies like AbbVie and Otsuka, supporting its goal of connecting psychedelic research with mainstream drug development.