The spin-out of investment bank Jefferies’ European fund placement team has been pulled, according to a person familiar with the situation, after it emerged that its head was leaving to join TPG Capital.

The team, headed by Magnus Christensson, was in "advanced" discussions to become independent, the person said, after six years of Jefferies ownership. However, the deal has been shelved because Christensson has accepted a role at the US buyout firm.