Standard Life Investments has opened an office in the US and hired Dan Cahill, formerly in charge of State Street Global Advisors, as its first step to create a global fund of private equity funds business.

Standard Life, the Edinburgh-based insurer, has given Cahill $200m (€174m) to spend on investments in 10 to 12 funds in the US. He said investments would be predominantly in mid-market buy-out funds until the venture industry picks up. It will also consider some large buy-out funds, distressed debt funds and mezzanine funds.