The deal, for an undisclosed amount, will result in Equistone taking control of the previously BPE managed funds BPE Funds I, II and III.

Barclays Capital, the investment banking division of high street bank Barclays Bank, formally owned the private equity arm. On completion of the management buy-out Barclays Capital will continue to invest in the newly rebranded firm.

BPE’s primary investments are management buy-outs and since 1996 the firm has invested €5.3 billion (£4.5 billion) in 214 transactions, a statement says.

Guillaume Jacqueau, managing partner of Equistone, comments: ‘This strong track record means Equistone is well positioned from the outset to capitalise on continuing investment opportunities in Western Europe as an independent investment firm.’

The Equistone management team will own the management company. The firm will continue to operate from its six offices in France, Germany, Switzerland and the UK, with a team of 35 professionals.

Deals completed by Barclays Private Equity so far this year include investments in Coventya Group, a business in the development and supply of electroplating and surface treatment, and The Mill, a content business for global brands and advertising agencies, from global alternative asset manager The Carlyle Group.