Prominent buyout bosses have conceded they face a future of lower fees and consolidation as the tough fundraising environment is expected to lead to better terms for investors in their battle for more power over private equity firms.

The comments were made at a debate yesterday held in response to a damning report on the buyout industry published in July by think tank the Centre for the Study of Financial Innovation. The report's criticisms included buyout firms "exploiting" investors and taking more than their "fair share" from investments, and firms depending on debt to drive returns.