Butler, who left Zibrant LIVE in August after four and a half years at the agency, will head up Wolf & White as creative director, with Marc Lewis joining her as technical director.
The agency will deliver a range of events from large-scale conferences to experiential brand experiences.
Butler told C&IT: "We have decided to go down the experiential route rather than becoming a production or events based agency because we have vast experience in big scale and creative events.
"Clients want a brand to be shown off in an interesting way and our aim is to work on projects that we can offer creative solutions for."
Lewis, who has been a freelance technical director and production manager for the last 16 years, added: "We wanted to create a new hybrid agency - one that sits between the stereotypical, high-end, creative and strategic marketing agency and the insight, innovation and expertise of a full service events agency."
Butler and Lewis will work with a group of preferred freelancers who have worked with the likes of Jack Morton, WRG and Smyle, with a view to remaining a boutique agency.
Butler said: "We don’t want to grow a huge company with 200 staff as we don’t want to water down our talent and creativity. We want to deliver a certain amount of events a year that will allow us to use our talent to our advantage. This agency is all about our talent."