European institutional investors are taking a magnifying glass to extra fees charged by private equity firms for dealmaking and monitoring, according to Jonny Maxwell, the chief executive of Standard Life Investments Private Equity.

Speaking at the Super Investor conference in Paris, Maxwell said: "The fees private equity firms charge companies for making the initial deal, for monitoring, for making the exit deal and for more besides, on top of the annual management fee and share of the carry, has probably become the most hotly-negotiated issue between firms and investors." The "carry" is the capital gain made in a fund.