Pinnacle Investment Management has launched a new boutique fund management firm that will invest in mid-sized companies.

The new firm, called Pinnacle Private Equity, will be led by joint managing partners Bill Cook and Peter Ludemann.

They have come across from AMP Capital Investors, where they were working in the private equity team.

"The current challenging economic and business conditions will present outstanding opportunities for experienced private equity professionals to make high-quality investments in the mid-market segment at attractive valuations," Pinnacle managing director Ian Macoun said.

"We believe that 2009 will be an excellent vintage for private equity investment - perhaps one of the best ever."

Cook and Ludemann hold a 70 per cent stake in the new firm, with Pinnacle holding the other 30 per cent.

The company does not expect to expand its stake in the near future.

"We are happy with 30 per cent - most of our holdings in boutique firms are between 30 and 40 per cent," Macoun said.

The new private equity firm seeks to raise $300 million from superannuation funds, high net worth individuals and overseas fund-to-fund managers to invest in high growth companies that have an enterprise value of up to $200 million.

Once funds are raised, more senior staff are expected to join the new firm.

The firm is the sixth boutique for Pinnacle. It also has stakes in Solaris, Plato, Resolution Capital, Hyperion and Palisade, who together manage about $4 billion of funds.