A London-listed private equity firm is planning to open offices in Bristol and Exeter following the launch of a new fund to support fast-growing companies in the West of England.

Foresight Group said the capital, backed by Devon Pension Fund, would be used to target smaller equity investments in “established, promising companies with growth potential” across Bristol, Cornwall, Devon, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.

It will be administered by Devon County Council and will be used to invest in expanding businesses across all sectors in the region, including buy-outs and equity release.

Devon county councillor James Morrish, chair of the council’s Investment and Pension Fund Committee, which oversees the administration of the Devon Pension Fund, said: “We are delighted that the Devon Pension Fund is investing in a fund that will support local businesses and providing local jobs, whilst still delivering the investment return we need to meet our liability to pay pensions.”

The fund is designed to be evergreen, providing a permanent pool of capital around which SMEs can make long-term plans. Foresight will establish a local team to support the deployment of the fund, it said.

Matt Smith, partner at Foresight Group, said: “We are delighted to launch a fund dedicated to the South West of England with support from Devon Pension Fund. We look forward to embedding ourselves in the local community and supporting growing companies across the region.

“Our investment approach is to work collaboratively with entrepreneurs and the broader local business community. We look forward to providing further updates on this exciting fund.”

Foresight manages a number of regionally focused private equity and venture capital funds dedicated to growing companies across the UK and Ireland.

In March, Foresight invested £5m in Family Adventures Group – a Somerset-headquartered children’s leisure venue and day nursery business – to help it open more sites across the South West and Midlands.