Butterfield Bank is offering investors access to a top private equity fund by committing a fraction of the multi-million-dollar investment that would be necessary to invest directly.

Curtis Dickinson, whose promotion to the position of senior vice-president, wealth management, was announced this week, said the Bank had launched a fund in conjunction with the Carlyle Group, which has achieved hugely impressive returns, sustained over two decades.

"There has been a lot of interest in alternative investments, such as hedge funds and private equity funds over the last 10 or 15 years," Mr. Dickinson said.

"Typically what you would need to invest directly in the Carlyle Group is something like $35 million. We have launched our own fund that effectively gives the investor access to Carlyle funds through our vehicle with a minimum commitment of $250,000."

Private equity groups tend to be formed by groups of wealthy institutions and investors and are known for buying listed companies, taking them off the stock exchange and after a period of time, taking them public again.

Their buy-out activity has helped to maintain the bull market of the last few years.

The Carlyle Group has indulged in own fair share of such buy-outs. They included energy infrastructure provider Kinder Morgan ($27.5 billion), information and media company VNU Group ($17.5bn) and car rental company Hertz ($5.6bn) in 2005.

In the case of Hertz, Carlyle took the company private for six months and then took it public again.

The Carlyle Group has more than $58.5bn under management in 51 funds across four investment disciplines (buy-outs, venture and growth capital, real estate and leveraged finance). It has offices in 18 countries seeking investment opportunities in North America, Europe, Asia, Australia and Africa.

Butterfield Assets Management Private Equity I, Limited Partnership will invest in four Carlyle funds — Carlyle Europe Partners III, Carlyle Real Estate Partners V, Carlyle Strategic partners II and Carlyle Partners V.

The fund was launched on June 12 and a series of investor meetings on the Island, featuring principals of the Carlyle Group, attracted great interest.

Mr. Dickinson said the Carlyle Group's returned had averaged 33 percent (annualised) over the past 20 years.

"We believe there should be some opportunity for exposure to alternative investments," Mr. Dickinson said. "Through our vehicle we can facilitate access for a reduced minimum amount.

"When we were considering who to work with, we looked at the Carlyle Group, which is one of the biggest private equity funds in the world with an excellent track record."

After a strong initial response from clients, Mr. Dickinson is confident the new fund will prove popular in Bermuda. "It's been reported that Bermuda has one of the highest standards of living in the world," he said. "So I would think there will be a number of individuals who will be interested in this product. And at our investor sessions, we had a huge level of interest."

In his new role, Mr. Dickinson will be responsible for all aspects of wealth management product and service delivery including the Bank's asset management, private banking and personal trust operations in Bermuda.

The Bank also announced this week that Michelle Wolfe, formerly managing director of Rothschild Trust (Bermuda) Ltd., will join Butterfield Bank as senior vice-president, private banking and fiduciary services, with responsibility for leading private banking and personal trust services in Bermuda.

Ms Wolfe, who is a Chartered Accountant, has over 20 years of experience, working with firms such as Grant Thornton, Price Waterhouse and Coutts.

Graham Jack, managing director of Butterfield Trust (Bermuda) Ltd., in addition to his current responsibilities for managing the Bank's personal trust business in Bermuda, will assume responsibilities related to the development of Butterfield Bank's international wealth management capabilities.