Gresham House is to raise up to £8.2 million in new equity from the Royal County of Berkshire Pension Fund, giving it a 20% stake in the specialist asset manager.
Gresham House has also announced the launch the British Strategic Investment fund (BSIF), a discreet long-term and low-liquidity strategy designed to appeal to pension fund and family office investors.
Chair of the Berkshire pension fund John Lenton said: 'This platform will enable us to reduce costs and obtain diversity in our investments.
'We will be targeting niche areas and make investments which are smaller and usually longer term than those that interest the major investment houses.'
Berkshire has subscribed for up to 2.5 million new ordinary shares in the business at a price of 325p per share, a 7.3% premium to the closing price on on 20 February.
The deal depends on Financial Conduct Authority approval and the blessing of current shareholders at the AGM next month.
Gresham House hopes to raise £300 million in new investment for BSIF, which will focus on 'innovation', housing and infrastructure
Investors will have the ability to be involved in the investment process and have discretionary co-investment rights so they can add to any investments in preferred sectors.
The company said a number of local authorities have already expressed interest.
Tony Dalwood (pictured), CEO of Gresham House, said: ‘Today’s announcement represents a further significant step in delivering the growth strategy that we set out when repositioning the group two years ago.
'We welcome our new strategic shareholder in Gresham House and the long term capital investment platform we are now proposing is expected to grow our third party assets under management significantly, accelerating our path to profitability.’