Finance professionals make 5.4 billion pounds on private equity

LONDON (Reuters) - The financial services industry reaped 5.4 billion pounds -- or 12 percent of its total revenue -- in fees from private equity deals in the year to end-March 2007, a report said on Monday.

Investment bankers, lawyers and other finance professionals command high fees for working on deals such as last year's takeover of music group EMI by private equity firm Terra Firma.

This is the first such study by the industry body, the British Private Equity and Venture Capital Association (BVCA).

"This report shows just how important the private equity industry is to the UK economy and the financial services industry," said BVCA Chief Executive Simon Walker.

"We are part of the economic mainstream."

Private equity firms, fuelled by abundant credit, had contributed to record numbers of M&A and IPO deals until the global credit crunch escalated last August, sharply curtailing their ability to raise capital for acquisitions.

The researchers surveyed more than 250 BVCA members and associate members, including private equity and venture capital houses, secondary investors and financial and professional services firms.