Germany's third-largest fund manager has appointed Unigestion, a Swiss alternatives manager, to advise on a private equity fund of funds due to launch by the third quarter of this year.

The fund manager, Union Alternative Assets, a subsidiary of Union Investment which is owned by Germany's co-operative banks, aims to raise between €150m ($193m) and €170m for its new product. It will be the fund manager's first foray into private equity.