F&C has acquired Martin Currie's private equity team along with its fund of funds vehicle and plans a merger with one of its existing trusts.
The deal, for an undisclosed sum, will see three private equity fund of funds managers, headed by Hamish Mair, relocate to F&C's Edinburgh office.
The board of the Martin Currie Capital Return Trust, currently managed by Mair's team, will transfer its mandate to F&C this week.
F&C's specialist Discovery Trust, run by the Bluehone Investors boutique, will be wound up in August. Investors will be offered cash and the option of transferring into the Capital Return Trust, which currently has net assets of £67.8m.
Capital Return will be re-named F&C Private Equity Trust and is expected to have about £90m in assets, including a £20m investment by F&C's majority owner Friends Provident.
Bluehone Investors, set up by former Isis manager and Discovery Trust lead manager Robert Mitchell and colleague Bill Brown, will manage the remaining Aim and small-cap shares transferred from the Discovery Trust until they are run down.
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