The private banking unit at Absa, South Africa's largest retail bank, majority owned by Barclays, has raised a ZAR200 million ($28 million) private equity fund from clients, according to a Reuters report.

Launched by Absa Private Bank in May, the fund had passed the target amount by the end of July. Ian Henstock, who heads Absa Private Bank's wealth and investment capability, said: "This is a unique offering in South Africa and an ambitious attempt by a domestic banking institution to break into the individual market."

The fund allows private banking clients to participate in future private equity deals done by Absa's investment banking unit, Absa Capital. The private bank will launch more such funds when the existing one has been fully invested.