Vardy Venture Capital will make investments of between £500,000 and £2m to support new firms.
VVC is based at new offices at Aykley Heads in Durham after moving out of Reg Vardy's headquarters at Doxford International Business Park after it was sold to Pendragon earlier this year. The deal prevents Sir Peter from entering the automotive business for the next 12 months.
Sir Peter said: "We ended up with £150million of the £500million and I thought we can get this going again and turn it into £300million but then asked myself if that was really what we should be doing.
"I need to be looking after my sons and daughters and getting them started in business, look after the Vardy Foundation and look after the schools.
"What's the difference between £150m and £300m? You can't spend it anyway.
"There's some fabulous businesses out there, great ideas, passionate people, but they need the funding, mentoring or support.
"VVC will try to help these businesses and most of the start-ups can get funding up to £500,000 and over £2m the banks start to get interested so we saw a gap in the market to help this group of people."
The Vardy family received £150million from the £506million sale of the Sunderland-based motor business three months ago to Pendragon.
In his new venture, he will work with financial director Paul Edwards, former managing director of Bannatyne's casino division.