A Mountain State money manager wants to give variable life and variable annuity owners a vehicle for profiting from private equity deals.

ALPS Fund Services Inc., Denver, an investment management services firm, has hired Red Rocks Capital L.L.C., Denver, to help it set up an AVS Listed Private Equity Portfolio for use in insurers’ variable insurance products.

The new variable product fund mirrors a Listed Private Equity Fund mutual fund that ALPS established in December 2007.

The mutual fund invests in 30 to 50 publicly traded private equity firms.

Since ALPS introduced the private equity firm fund, insurers have been asking ALPS to develop a similar investment option for variable insurance product portfolios, according to ALPS President Edmund Burke.

ALPS also markets a family of asset-allocation portfolios that hold costs down by investing in exchange-traded funds.