Stuart Widdowson, who quit as manager of the Strategic Equity Capital investment trust in February, is launching a new investment trust and committing at least £1.2m of his own cash to the vehicle.
Mr Widdowson has partnered with Harwood Capital to launch Odyssean Capital, a investment management company to launch the trust.
Harwood have committed to invest £20m in the trust at launch while Mr Widdowson and his immediate family have pledged to invest £1.2m.
The trust is seeking to raise £100m at launch.
Jason Hollands, managing director for business development and communications at wealth manager Tilney, said: "Mr Widdowson's investment strategy is based on using private equity techniques to invest in companies listed on stock markets."
Mr Widdowson confirmed this investment process will be repeated in his new venture.
He said the focus of the trust will be companies with a market cap of between £150m and £750m, but there will not be a specific lower limit for the size of companies into which the trust will invest.
He believes the strategy would cease to be as effective when the assets grow beyond £500m.