Rothschild plans to raise a €500 million (about $710 million) investment fund as chairman David de Rothschild’s son joins the firm, two people familiar with the plan have told Bloomberg. 

Alexandre de Rothschild has joined the family bank from Argan Capital, Bank of America’s former European private equity arm, to work on the project, according to the unnamed sources. Rothschild managing director Marc-Olivier Laurent will oversee it.

The fund will acquire minority stakes in closely held companies valued at €100 million to €500 million, reflecting a nearly 50 per cent fall in worldwide mergers and acquisitions in the past twelve months.

Investors will include Rothschild partners and clients.