Martin Currie, the Edinburgh-based investment manager, plans to launch a private equity fund of funds for mid-market investments in Europe, reinforcing its recent enthusiasm to develop its alternative assets business.

Hamish Mair, head of private equity, said he hopes the group's second fund will be bigger than the first, which raised £100m (€156m) and had a global focus. The new fund will have a wider remit to include buy-outs, ventures, mezzanine and some special situation funds, and to target companies with €50m ($50m) to €500m in enterprise value.