Former Credit Suisse chief executive Brady Dougan plans to launch a merchant bank in early 2017 and has lined up a $3 billion investment to seed the venture, according to people familiar with the matter.

Dougan's firm will be backed by Scepter Partners, a syndicate of Middle Eastern ultra-wealthy families and state investment funds. The business, which is slated to launch next spring, will aim to make investments across a number of industries while providing investment banking and trading services, the people said.