Under the name CogitalGroup, the new firm will build its presence in the accounting space with the acquisition of accounting firms with a focus on high net worth clients and entrepreneurial businesses and will be chaired by Connolly.

HgCapital specialises in investments in services, telecoms and industrials while a separate arm invests in renewbales. Companies in its portfolio include Iris Software, car leasing operators, Leasedrive and Zenith, insurance broker A-Plan, and HR provider Citation.

Earlier this week, HgCapital denied that the plans were in the final stages of inception, although filings at Companies House showed that CogitalGroup was registered in July with a registered office in Bristol.

The first move to make a mark on the UK accounting market was the acquisition of London firm Blick Rothenberg, a niche player with annual fee income of £25m. Although it did not participate in the annual Accountancy Top 75 firms survey, it would have been ranked 25th. The name Blick Rothenberg will be retained for the time being.

Thorsten Toepfer, member of the services team at HgCapital said: ‘John's track record and knowledge of the professional services space speaks for itself. We feel fortunate to have him on board and believe he will play an important role in the future development of the CogitalGroup.’

John Connolly, chairman of CogitalGroup, said: ‘We plan to build a different kind of advisory business with an exceptional level of innovative, client focused service.

‘Delivering high value service to our clients will be an obsession. We feel there is a place in the market for a firm focused on entrepreneurial businesses, delivering a personal service whilst harnessing the value-enhancing role of technology. This approach, already embedded in Blick Rothenberg, provides an excellent foundation for our new business.’

As yet Cogital has not set up a web presence. Further information on HgCapital here