Lord Davies joins Corsair, which spun out of JPMorgan Chase in 2006, as vice chairman and partner, based in London.
He most recently served as minister of state for trade, investment and small business under Gordon Brown’s Labour government, a post he took up after leaving Standard Chartered in 2008.
The move sees Welshman Davies return to the buyout firm in a full-time deal making capacity. He previously served as a member of its advisory board during his time as Standard Chartered chairman. He also served as a senior executive of Wall Street giant Citigroup earlier in his career.
Corsair counts Standard Chartered’s Americas chief executive, David Stileman, and Resolution chief executive John Tiner – former head of City watchdog the Financial Services Authority – among its advisory board members.
The firm’s investments include California’s East West Bank and Polish insurer PZU.