One of the buyout industry’s most prominent figures has urged firms to stand up to potential investors who make unreasonable demands at a time when many private equity houses are seeking crucial cornerstone backers.

Mark Florman, chief executive of the British Private Equity and Venture Capital Association, has said some emerging private equity investors with limited experience dealing with large buyout firms were taking advantage of a shifting balance of power. These investors, such as sovereign wealth funds, were "asking more than they should" from buyout firms in negotiations over terms, he said.