The Edmond de Rothschild Fund UK Synergy will target takeover deals and companies for restructuring.
The fund was seeded with £3m and Edmond de Rothschild is aiming to build up a "scalable franchise in the UK", with no specific targets or timelines for capital raising set.
City A.M. understands the increase in UK mergers and acquisitions activity is anticipated no matter what the result of the referendum.
The fund will be led by Philippe Lecoq and Oliver Huet, who have worked together for 12 years, and will follow the same investment process as the €1.4bn (£1.1bn) Edmond de Rothschild Fund Europe Synergy, which holds 30 per cent of its assets in the UK.
"In the lead up to the EU referendum in June we believe that M&A activity will be slightly constrained but for the mid-term, we are expecting a flurry of M&A activity post the referendum vote when uncertainty recedes," said Lecoq.
"Corporate activity will remain strong this year and into 2017 as this kind of cycle tends to last between three and four years.
"The combination of weak growth outlook and low inflation is a big incentive for corporates to transform their portfolio of assets and/or to consolidate some of their activities."
Dan Lee, head of UK wholesale at Edmond de Rothschild in London, added: "In an environment where there is an enormous choice of UK equity funds, the dual approach of targeting M&A bid targets and restructuring/turnaround companies stands out as a compelling, differentiated investment proposition.
"I look forward to introducing the team’s capabilities and discussing the strategy with investors in the months ahead."