Five Arrows Capital Partners, the private equity arm of storied merchant bank Rothschild, has set up a new office in the US and is seeking to raise $500m to invest in mid-market companies, FN's sister publication Private Equity News reports.

Five Arrows set up the office last year and has hired more than a dozen executives, some of which came from Diamond Castle Holdings, a private equity firm set up in 2004 by former Credit Suisse dealmakers Larry Schloss, Ari Benacerraf and Michael Langer.