Having secured £150m from the £506m sale of Reg Vardy to Pendragon in March, Sir Peter maintained he harboured no ambitions of a return to the industry.
“I have no intention of doing a Tony Bramall and coming back to the trade,” he told Motor Trader.
Instead, the Christian philanthropist is targeting the regeneration and growth of fledgling businesses across the UK and in his native north east in particular.
Vardy Venture Capital, which began running last week from the Vardy Group's new offices in Durham, will look at investing between £500,000 and £2m
to support new companies.
“There are lots of small to medium-sized businesses out there which have brilliant ideas, but are short of funds, advice and mentoring,” said Sir Peter.
“We saw a gap in the market to help this group of people which we are in a position to fill.”
The new project has already attracted a number of interested parties with some connected to the motor trade.
In his new venture, Sir Peter will work with financial director Paul Edwards, former managing director of Bannatyne's casino division.
Sir Peter also said he would help his sons develop their businesses.
Richard Vardy is heading up a new property investment company while Peter Vardy is developing his Scotland-based motor retailing business.