UK law firms pocketed more than £1bn in fees from the private equity sector in 2006, with legal advisers confirmed as one of the main beneficiaries of the boom in venture capital activity over recent years.

Research published today (21 January) by the British Private Equity & Venture Capital Association (BVCA) shows that the estimated 200 law firms involved in private equity work trousered fees worth a combined £1.2bn for the 12-month period.

Professional services firms, including law firms, earned a total of £5.4bn in 2006, with private equity deals for the year totalling £14.9bn – equivalent to 1.4% of the UK's gross domestic product.

Omega Funds general counsel Claire Wilkinson, who chairs the Private Equity Lawyers Forum, said the industry was due recognition for its contribution to the UK economy.

She commented: "The general trend is that all law firms want to have a slice of this kind of work; it's a highly lucrative sector. This has been the nature of the industry for a long time now. We are finally getting some recognition of the benefits the sector brings."

BVCA chief executive Simon Walker added: "This report shows just how important the private equity industry is to the UK economy and the financial services industry. It confirms something that many of us have known for some time – we are part of the economic mainstream."

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