Deutsche and KKR take top fee slots in third quarter

KKR took top spot in the third quarter fee tables produced by Thomson Financial in conjunction with Freeman & Co covering Europe, Middle East and African (EMEA) region, with Deutsche Bank coming top as the recipient of private equity related fees. The fees relate to debt, equity, M&A and syndicated loan products. Fees paid by the top ten private equity houses increased from US$3.5bn in the third quarter of last year to US$4.53bn in the third quarter of this year. KKR beat off CVC Capital Partners who took the top spot in the second quarter.

Interestingly the market share of fees paid by the top ten fell marginally from 46.9% in the third quarter of last year to 45.5% this year.

The top ten private equity players in the third quarter data for 2006 are almost identical to those for the third quarter of 2007, with BC Partners and perhaps surprisingly Carlyle Group giving way to Goldman Sachs and unsurprisingly 3i Group this year.

The main areas of increase in fees paid too investment banks by private equity related to loan and equity fees followed by M&A and then debt. In fact loan fees increased US$1.99bn to US$2.5bn this year while equity increased from US$335m to US%540m this year.

Deutsche Bank remained in the top slot as the main EMEA fee recipient in the third quarter this year. This time last year JP Morgan was the leader followed by Deutsche, Goldman Sachs and Morgan Stanley. This year Morgan Stanley has given its top four slot to Royal Bank of Scotland which took second place up from third place in the second quarter.

Total fees received by the banks from the top ten houses increased from US$US$3.5bn this time last year to US$4.5bn this year. Deutsche Bank made US$381.5m in private equity related fees this year – up from US$256.1m last year and over US$100m more than the JP Morgan who took the top slot in 2006.

The market share received from the top ten private equity houses by the top ten investment banks decreased marginally from 55.1% to 54.8%.