European private equity executives are hoping that 2010 will be an improved year for fundraising, as 3i Group looks to become the latest top European buyout firm to return to the market on the back of a gradual return of confidence in the sector.

3i is discussing with investors the possibility of raising a stand-alone fund for growth capital investments, a source with knowledge of the situation confirmed. The firm has traditionally funded growth deals - investments in small to mid-sized, fast-growing companies - from its balance sheet.