Rothschild's firm aims to raise £1bn

An acquisition vehicle backed by financier Nat Rothschild and former BP chief executive Tony Hayward is expected to announce its intention to float as early as next week.

It is looking to raise about £1bn to invest in oil assets.

The board of Vallares – set to be a sequel to Rothschild's Vallar, a mining investment vehicle which now has a market value of £2.5bn – has approved publication of a pathfinder prospectus. "The prospectus... has been approved for distribution," sources near to the deal said. "It will be privately distributed to a very, very large group of investors."

Vallares is believed to be looking to secure preliminary interest in up to 80 per cent of its stock before going public with its listing plans. It could tap sovereign wealth funds.

The intention to float will be published in the next two weeks, the sources said, though it could be as early as next week.

The vehicle will target stakes in early stage projects or projects in production where operating firms need some more cash to expand.