KKR, Blackstone, Texas Pacific Group, Bain Capital and Permira are among the eight founding trustees on the committee of the new Private Equity Foundation, which is expected to be formally launched during the next few weeks at a gala dinner in London. The other members of the steering committee are Candover, Summit and TowerBrook.

Todd Fisher from KKR, David Blitzer at Blackstone, Carl Parker of Permira and Texas Pacific’s Stephen Peel are understood to be among the individuals who will sit on the committee.

About 30 private equity groups across Europe are thought to have backed the foundation, including CVC and Apax.

It is the first time the buyout industry in Europe has teamed up to work on a charitable initiative. “The list reads like a who’s who of the private equity industry,” said one source.

Speculation first surfaced about the proposed charitable foundation last autumn, but the plans have been kept tightly under wraps. The key players are believed to have committed an initial sum of £5m to kick-start the foundation, which will propel it into to the top echelons of the British charities league.

It is expected that tens of millions of pounds will be raised each year once the foundation becomes established. According to the UK Voluntary Sector Almanac, there are 167,466 charities in England and Wales, of which only 4,331 have annual income of more than £1m. There are just 570 charities with income of £10m and above.

The Private Equity Foundation is expected to focus on helping the underprivileged with a particular emphasis on education and children’s charities such as the National Society for the Prevention of Cruelty to Children.

“This is about the private-equity industry recognising it is very privileged and wanting to give something back,” said a City source. The private equity groups believe that by harnessing their resources they can make a greater impact. It is hoped the new vehicle will become the main fundraising vehicle for the private equity industry in Europe.

The groups also plan to work with charities to advise them on how to make the most impact and run their operations in the most efficient way.

The foundation is expected to be selective about the charities that it works with, applying the principles that private equity firms adopt when choosing their investments. The collective financial firepower and the skills they have could transform what some charities may be able to achieve.

The firms have been trying to keep the plan as low-key as possible, perhaps fearing a backlash.

The initiative will inevitably draw comparisons with Ark, the charity backed by Arpad Busson, the hedge-fund impresario, although the private equity industry tends to be less high-profile and flamboyant than the hedge-fund sector.

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• B&B shareholders forced into funding rescue
• John Lewis department store sales plunge 8.3%
• Families turn to credit to cover mortgage bills