Fund house Aberdeen Standard investments is partnering with specialist private equity investment firm 21 Partners to launch a direct private equity fund.
The fund will aim to take minority stakes in unquoted companies, and take an active role in the management of those companies.
The aim is for the fund to be €1bn (£880m) in size.
It will invest in companies located in Europe, and expects to exist for 15 years.
Aberdeen and 21 Partners are launching a separate, joint venture company, to manage the fund.
The joint venture company, 21ASI, will have its own offices in London.
Martin Gilbert, co-chief executive of Aberdeen Standard Investment, said: "The joint venture is a powerful combination of a team led by one of the most reputable figures in the private equity industry combined with our own expertise in that area and a global footprint which will greatly enhance the marketability of the product.
"This is an exciting opportunity to provide a direct private equity offering to our clients.
"There is a clear demand from them for private markets products which offer attractive returns and important diversification."
Alistair Cunningham, financial planning director of Caterham-based Wingate Financial Planning, said the fund is not something he considered to be appropriate for most retail investors.
david.thorpe@ft.com
