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The Blackstone Group LP (NYSE: BX) is planning to launch Blackstone Altius Advisors, a business focusing on event-driven investments in the Asia Pacific region and led by Aaron Nieman. The business will be based in Hong Kong and additional team members will operate from New York and Tokyo.

Aaron Nieman, Atius' Senior Managing Director and Chief Investment Officer, joins Blackstone after significant experience at S.A.C. Capital Management's Asia Pacific merger arbitrage division and at Lehman's Brothers Tokyo and Asia Pacific Global Trading Strategies Division. Also joining the team as Chief Operating Officer is Christopher Pesce. He has experience as Bank of America's Global Head of Prime Brokerage and with Goldman Sachs in New York and Hong Kong.

Blackstone Altius Advisors joins Blackstone Capital Partners and Blackstone Real Estate Partners, as well as a hedge fund and two closed-end mutual funds in Blackstone's Asia operations.

Shares of Blackstone were up a marginal $0.04 at $19.01 in early market trading, and now shares are down marginally by $0.05 at $18.92.

Jon Ogg produces the Special Situations newsletter for 247Wallst.com.

There is an interesting article out of the International Herald Tribune that is discussing the competitive environment in Asia that has essentially pitted private equity investment money against venture capital investment money.

As economies in South Asia have rapidly expanded over the last decade, U.S. investors have jumped at the opportunities to capitalize on the growth. However, venture capitalists and private equity investors alike have learned that they have to approach investments more cautiously than they do in the United States. Until the markets in South Asia mature, U.S. investors will likely continue to tread carefully when investing in early-stage growth opportunities.

This article notes that investors are putting their money into companies that have already tested the waters, avoiding early-stage investments that are subject to higher risks and regulatory issues. The size differential here is also surprising when you read into it. Initial funding for a deal in China and India runs much higher, up to $50 million, compared to $2 to $12 million in the United States, because the companies are often already in business, requiring more first-round capital. As a result, the distinction between private equity and venture capitalists is narrowing as they compete for the same mid-stage or later-stage deals in India and China.

In the U.S., the policies are much more clearly defined. Venture Capital firms (and angels) are the ones approached here for seed, start-up, and early stages of financing for emerging companies. Private Equity firms buy established businesses that either can be turned around and run more efficiently or they buy companies essentially for the cash flow streams.

At the beginning of this year, I wrote that Carlyle Group co-founder David Rubenstein was predicting that emerging markets would see a surge in private equity activity.

While he didn't say that the private equity money would be departing the West for that region, that may be what has happened. According to The New York Times, private equity firms are setting new records with the size of the buyouts funds they are raising for Asian markets: "... investors are expected to commit $25 billion more in the second half of this year to private equity funds in Asia, according to the Center for Asia Private Equity Research. That would be on top of $15.4 billion in fresh capital committed to regional funds in the first half of 2007, a rise of 57 percent over the period a year earlier."

With $35.7 billion in unallocated funds ready to be invested in the region, emerging markets could see private equity fueling a continued bull market. In addition, the confidence of firms like Carlyle, KKR, and TPG should assuage investors' concerns about the region. None of these firms have a reputation for speculative investment, and the rapid growth may be for real this time.

Use ETFConnect.com to find an emerging markets ETF for your portfolio if you don't already have one..

The Asian markets have been underrepresented in terms of private equity activity. But that's going to change fast.

This week, for example, Bain Capital raised a $1 billion Asian fund (this is the first one for the firm). This is according to a report from the Associated Press.

The main focus will be in China and Japan. No doubt, there are lots of companies to choose from. Although, dealing with the regulations will not be easy.

And, according to a report in Reuters, CCMP is in the process of raising a $3 billion Asian fund. The firm does have lots of experience in the region though. Its Asia Opportunity Fund II has a size of $1.6 billion.

Oh, and it looks like KKR is raising an Asia Fund and is targeting a cool $4 billion or so.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.