The chair of the Australian Business Growth Fund, Will Hodgman, has quit after only a few months in the role and will be replaced by former New South Wales Premier and NAB senior executive Mike Baird.

Hodgman, a former Premier of Tasmania, was appointed as the ABGF’s inaugural chair in April.

The fund has been set up as a government and business partnership to provide equity funding for small and medium enterprises. The government will invest A$100 million and the major banks have each committed $100 million.

HSBC Bank Australia and Macquarie group have committed $20 million each. The Treasurer has said he hopes to grow the fund to $1 billion.

The Treasurer did not give any explanation for Hodgman’s short tenure.

Last month, banker Anthony Healy was appointed to run the fund. Healy moved from NAB subsidiary JB Were, where he was chair for the past two years. Prior to that, he was the chief customer officer in business and private banking at NAB and chief executive of Bank of New Zealand.