Beech Tree Private Equity has set aside funds of between £10m - £40m as it nears the completion of a deal in the wealth management sector.
The investment in an undisclosed wealth management business will see it support the firm's "rapid acquisition strategy" with hubs in London, the South East, the South West and Scotland.
Simon Hemley, director at Beech Tree, said the private equity firm had been targeting an investment in the wealth management sector "for some time now".
Mr Hemley said: "We are attracted to both the positive market drivers, and also the highly fragmented nature of the market.
"We are targeting an ambitious buy and build strategy and would welcome the opportunity to discuss our strategy with potential targets."
Private equity investment has become a prominent theme in the wealth management landscape in recent years.
Beech Tree is also readying itself for a "particularly busy" coming months as advice owners make moves ahead of the potential capital gains tax changes in April.
Last month FTAdviser reported CGT changes mooted by the Office of Tax Simplification could make it increasingly difficult for advisers looking to sell their business and leave the market.
Mr Hemley said: "We will target businesses with AUM of £50m plus, generating Ebitda upwards of £250,000.
"We would be a good home for someone looking to realise value, transition customers in a way that has customer service at the forefront of the acquisition model, and enable retirement."
Beech Tree provides funding to support management buy-outs, acquisitions or organic growth in the financial services industry, alongside the support services sector and technology market.
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