Teneo will comprise a merchant bank with offices initially in New York, London, Washington and Toronto.
Mr Kelly, 42, has formed the company in partnership with Douglas Band, the former advisor to Clinton, and Paul Keary from FTI Consulting and Financial Dynamics, who will act as chief operating officer.
A brother of Labour TD, Alan, Mr Kelly was born in Portroe, Co Tipperary and is a former vice-president of FTI. He also worked as advisor to Hillary Clinton during her campaign for the White House.
Both Clinton and Blair will serve on Teneo’s advisory board, where their experience will focus on assisting its international business expansion.
It is expected that Teneo, derived from the Latin “to guide”, will have a presence in Dublin at a future date.