Philippe Nguyen, who unexpectedly resigned as chief executive of Crédit Lyonnais Private Equity two years ago, is trying to raise a €300m ($341m) fund for his new French mid-market buy-out firm.

His re-emergence will add pressure on an already competitive market. Helen Steers, Paris-based managing director of Frank Russell's European private equity fund of funds business, said: "The French mid-market has become extremely popular over the last 12 months. An awful lot of funds have been raised and it is competitive, but it has proved a fertile market with steady dealflow." Nguyen's new firm, Investors in Private Equity (IPE), will compete with established French firms Chequers Capital, Astorg, Atria, LBO France and Alpha Associés, which are raising funds or have recently completed fundraising.