Steve Ilott, head of fixed income at Aberdeen Asset Management, plans to leave the firm at the end of the year to run a hedge fund. Aberdeen plans to back the new fund.

Mr Ilott, who joined Aberdeen when it acquired Deutsche Bank's UK business in 2005, will be replaced by his former Deutsche colleague Gary Bartlett who is currently head of Aberdeen's US business based in Philadelphia.

The firm said: "Aberdeen is in discussions with Mr Ilott regarding the potential establishment of an alternatives asset management business in 2008."

But it declined to comment on why he had chosen to move out of the business and was unable to say how much Aberdeen will contribute to his new hedge fund or where it will operate.

Martin Gilbert, Aberdeen chief executive, said: "We are naturally very interested in supporting Steve in his new venture and look forward to a close ongoing relationship."