UK-based Toscafund will become the latest hedge fund firm to launch a UCITS III version of one of its funds later this month, when it launches a UCITS-structured version of its mid-cap fund, Reuters reports.

The UCITS fund, which will be launched on a platform provided by Deutsche Bank and is expected to close at $300 million, will be run according to the same strategy as the firm’s mid-cap fund, Martin Hughes, founder of the firm, reportedly told the Reuters Private Equity and Hedge Fund Summit in London.

Around 80 percent of the fund's holdings could be liquidated within a week, and the UCITS III version will be "an alternative to the index-tracking large investment trusts," Mr Hughes is reported as saying.

A number of hedge fund firms have now launched UCITS versions of hedge funds, looking to access investors who want a liquid and regulated product, and after hedge funds’ traditional investor base was depleted in the financial crisis.