Filed under: Deals, China, Private equity, Blackstone Group L.P (BX)

When the Blackstone Group LP (NYSE: BX) went public a year ago, the Chinese government invested $3 billion in the firm. No doubt, this was a sign that Blackstone was ready for lots of dealmaking.

But so far, things have been underwhelming. One of the deals was for a mere $600 million for a 20% stake in China National Bluestar Corporation (a chemicals company). There was also the $160.7 million purchase of a commercial building in Shanghai.

However, Blackstone isn’t giving up. In fact, today the company announced the opening of its Chinese office in Beijing. The chief of the operation will be Fu Shan who was formerly the VP of Beijing Mainstreets Investment Group Corporation (which focuses on real estate deals). He also has extensive background with governmental divisions, such as the National Development and Reform Commission (NDRC).

Blackstone realizes that China requires more than just money and deal structuring. There needs to be staff that has deep experience in dealing with the intricacies of the country. Even with this, the dealmaking is still prone to be a slog.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the web Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Filed under: Deals, General Electric (GE), Private equity

Infrastructure assets can be stable, long-term investments, and as a result, private equity firms are certainly interested.

In fact, TPG has joined Global Infrastructure Partners - a joint venture of Credit Suisse and GE Infrastructure (NYSE: GE) - to make a preliminary $6.5 billion bid (when you include the debt load) for Asciano, a port and rails infrastructure firm based in Australia.

Actually, TPG has had a blended performance with Australian deals. For example, the firm was unable to pull off its $11.1 billion buyout of Qantas.

Yet, now the markets are much different, and infrastructure operations definitely need cash - which is tough to get in the current credit crunch.

Asciano has about 8,000 employees and generates $2.5 billion in revenues. Some of its key assets include bulk export facilities, four leading container terminals, Stevedoring equipment and rail operations for freight and commodities. There are also joint ventures, such as Patrick Autocare (processing, storage and distribution of motor vehicles).

Of course, Ascaino has already rejected the buyout offer, but it’s going to be tough to get a much higher bid, especially in light of the company’s heavy debt load and weak operational performance over the past year.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the internet Guide to Decoding Financial Statements. He also operates MergerBook.com.

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