The former chief executive of French buyout firm PAI Partners and his closest lieutenant, both of whom left the firm in mid-2009 after what some investors called a “coup”, are considering a return to private equity with a new fund that will rival the group they served for 25 years.

Dominique Mégret, formerly chief executive of PAI, and Bertrand Meunier, a member of its executive committee until his departure with Mégret, are in talks with investors over a potential fundraising according to a source close to the pair. Their non-compete agreements with PAI have now expired, enabling them to launch a new fund, the source said.