JSM Financial: Private equity firm Blackstone Group to establish presence in Australia.

May 19, 2010 - PRLog -- JSM Financial has learned that U.S. buyout giant Blackstone Group LP has announced that it is to set up a presence in Australia to capitalize on opportunities in the region.

"We are establishing a presence here to integrate the firm into the local business community, seeking opportunities to invest and to raise capital," managing director of Blackstone Group Australia Philip Levinson said in a recent conference call.

Blackstone Group joins other big name LBO’s, including Carlyle Group, which are already active in the $20 billion Australian private equity sector.

Recently Carlyle Group and TPG mounted a $1.6 billion bid for the Australian hospital operator Healthscope, which JSM Financial has learned is the biggest private equity deal for Australian since 2007.

Reports indicate that Blackstone had planned to open a Sydney, Australia office in the last half of 2009, but chose rather to delay the move while awaiting a final decision by Australian authorities on the taxation of private equity deals.

In the same conference call JSM Financial believes the vice chairman of Blackstone Advisory Partners, Byron Wien said that he did not expect a mass exodus of investors from the Australian mining sector if a proposed 40% tax on the industry was passed.

He went on to warn however that targets of the tax were likely to seek other alternatives.

"The government has to be very careful about this, because studies show that when you raise taxes too much you don't really get any more revenue," JSM Financial understands he told reporters.

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