City investment bankers advising private equity firms on takeovers and capital markets work have been left chasing a smaller share of a dwindling revenue stream in 2016.

Overall investment banking fees have dropped more than a quarter in the UK so far this year, according to Dealogic, leaving banks scrabbling for deals. But their task is proving even tougher in the financial sponsors space, where fees have nearly halved from their level in 2015.