Bennelong Funds Management has launched an equity business lead by ING's former co-equity heads Paul Cuddy and Mark East.

Bennelong Australian Equity Partners will initially launch an Australian core and concentrated equity portfolio with plans to develop more strategies in the large cap area.

Under the partnership, the new equity team will exclusively manage the large cap Australian equity business for Bennelong.

Bennelong already has two boutiques, a funds management business led by James Wilton and a long short equities fund led by Richard Fish.

Cuddy will take on the job as chief executive while East has been appointed chief investment officer.

The large-cap team will include senior analysts Michael Chun and Michael Malseed who were also members of the ING' equity team. Former Schroders fund manager Keith Hwang will join the team as director of quantitative research.

The group "have a significant equity stake in the business", Cuddy said.

While at ING the team managed funds that totalled over $10 billion, the new business will cap its fund size.

"We are extremely excited about this business venture. This is not something we've done on a whim. We did not want to reach the age of 50 and think what if," Cuddy said.

Bennelong is confident of the success of the team, according to the firm's head of funds management Jarrod Brown.

"In previous roles, Paul and Mark have consistently added significant value," Brown said.

"The broader team they have brought together combines a great investment proposition.
 
"We see their decision to join Bennelong as a real coup and a great illustration of support for what we are trying to do."

Global custodian BNP Paribas has been hired to manage the back-office functions of the business.

The business will target both institutional and retail investors.