A firm set up by private equity veteran Peter Laib is raising a fund to buy up to $250m of diamonds from North American diamond miner and retailer Harry Winston, with an eye on institutionalising investment in the precious stones.

Harry Winston said in a statement last night that it has set up a relationship to sell polished diamonds to Diamond Asset Advisors, a company found by Laib. Winston eventually expects to sell 10,000 of the precious stones to the fund, according to someone familiar with the fundraising.