Jon Moulton, managing partner of Alchemy, the UK mid-market buy-out firm, fired a broadside at larger groups today describing the fees they demand for running funds as "ludicrous and inappropriate".

Speaking at a panel debate on future trends in the buy-out industry at the Super Return conference in Frankfurt, he said a buy-out firm with a $10bn (€8.4bn) fund could not possibly justify receiving $200m a year in management and transaction fees.