Swiss private bank Valartis Group AG has selected Russian VTB Capital Investment Management as sub-advisor for its US$1 billion Russian fund.

Valartis senior portfolio manager Tim McCarthy and a team of analysts will relocate to the VTB unit following the deal, reported Bloomberg.

Valartis CEO Gustav Stenbolt said that the bank was looking for a buyer earlier this year to target wealthy clients in Eastern Europe and Russia.

As part of the deal, the bank said that the fund’s structure, custodian and administrator will remain the same in the future.

Valartis and VTB plan to change the fund’s management to VTB pending regulatory, board and shareholder approvals.

VBT fund unit CEO Vladimir Potapov said that McCarthy was appointed to develop new products for international investors and expand the firm into foreign markets.

Potapov added that VBT also plans to expand its distribution team in 2014 to London, Dubai, Hong Kong and New York.

McCarthy has worked alongside Potapov at Troika Dialog, the investment group acquired by OAO Sberbank.