The fees that private equity groups pay to investment banks have declined by 64% through the first nine months of this year from the same period last year as the drought in deals depresses a once-generous revenue stream.

Investment banking revenue from financial sponsors, or private equity managers, totalled $4.8bn (€3.5bn) through the first three quarters of 2008, the lowest at this point in the year since 2002, when $3.9bn in revenue was collected, according to research provider Dealogic. At this same time last year, the amount was $13.5bn.