Schroder Investment Management will be taking over the Woodford Patient Capital Trust by the end of the year, with Tim Creed and Ben Wicks leading the team-based approach.
The investment company will be renamed Schroder UK Public Private Trust plc, retaining the company's existing investment objective and policy through bringing together its established investment approach across quoted and unquoted companies with a long-term outlook.
In an announcement to the stock exchange, WPCT board chairman Susan Searle noted the "challenging circumstances" surrounding Woodford Investment Management and called Schroders the "natural choice" to take over the fund.
Schroders said it will use "deep resources" in both its private assets and equities management teams, which will be led by Creed, head of European private equity and Wicks, head of data insights and research innovation.
The pair will be supported by Andrew Howard, head of sustainable research and Erwin Boos, healthcare specialist for Schroder Adveq, as well as a team of 25 data scientists.
Schroders' experience in public and private markets as well as healthcare and technology sector expertise will see the portfolio agnostic over whether quoted or unquoted companies are selected.
The team said it will seek "positive outcomes for shareholders and British enterprise".
Searle said: "Following a competitive process, we are delighted to be appointing Schroders as the company's portfolio manager. Its careful and considered long-term approach to investment, backed by its substantial research resources in both public and private assets, makes it the natural choice to manage the company's portfolio."
On appointment, Schroders will not take a management fee for three months, after which they will be paid an annual management fee of 1% on market capitalisation up to £600m and 0.8% thereafter.
No performance fee will be payable until 31 December 2022, at which point Schroders will be eligible to a fee of 15% of any excess returns above a net asset value (NAV) per share of 77p.
At 22 October, the last reported NAV share was 63.23p.
Thereafter, the team will earn a performance fee of 15% of any performance above a hurdle of 10% of net assets each year, subject to a high-water mark. The board said the fee structure will align the interests of shareholders and the incoming manager.
Searle added: "I would like to thank our shareholders for their support throughout this process as we have worked to put in place the right portfolio manager against the background of challenging circumstances.
"Throughout the process, the board has had a clear focus on achieving an outcome that protects and enhances long-term shareholder value and we believe Schroders is best placed to deliver this.
"A well-managed handover is underway to protect shareholder value and deliver long-term performance for all shareholders."
Further details will be announced following Schroders' formal appointment.