The fees relate to debt, equity, M&A and syndicated loan products. Fees paid by the top 10 private equity houses increased from US$2.16bn in 2006 to US$2.35bn in 2007. KKR moved up from fifth spot in 2006 to take the top place in 2007, knocking Permira from the top slot in 2006 to third place last year.
The market share of fees paid by the top 10 fell marginally from 44.9% in 2006 to 42.7% in 2007.
The top 10 private equity fee payers remained reasonably similar for the 2006 and 2007. However,
The main area of increase in fees paid to investment banks by private equity related to M&A and loan fees, followed by a marginal increase in equity fees. However, fees generated from debt by the top 10 firms fell dramatically from US$84m to US$25.9m in 2007.
Deutsche Bank jumped from third place at the end of 2006 to become to the top private equity fee recipient in 2007, generating US$431.4m of fees in the past 12 months.
Total fees received by the banks from the top 10 houses increased from US$2.6bn in 2006 to US$2.9bn last year, with the average fees earned by the top 10 investment banks increasing from US$259.9m to US$293.53m.
However, the market share of fees earned by the top 10 banks fell from 53.9% in 2006 to 53.4% last year.