UK railway industry pension fund Railpen has entered into a joint venture with three other investors to launch a new $700m (€569.3m) fund of funds, Constellation Capital.

Constellation’s other backers are Alaska Permanent Fund Corporation and The Public Institution for Social Security of Kuwait. Kuwaiti investment manager Wafra will manage the fund.

Constellation will provide capital to emerging private equity and alternatives managers. This is expected to include European private equity firms, Real Deals understands.

It has already made its first investment, committing $100m to Washington DC-based private equity firm Astra Capital Management.

Teaming up has been a popular approach for investors in the funds-of-funds space in recent years.