Private-equity firms don't have a good track record for improving the properties they buy. They're better known for buying firms, improving efficiencies (sometimes to the company's detriment), milking them for cash, and then flipping them when they can profit. Recently I wrote the sad but familiar tale of Simmons, an iconic mattress company forced into bankruptcy from the debt load left by frequent private-equity flipping.

Will Blackstone Group (NYSE: BX) do the same to Busch Entertainment? On Wednesday, Anheuser-Busch InBev (NYSE: BUD) finalized a deal to sell the group to Blackstone for $2.7 billion, and the early signs suggest that this deal might go better than others.

Shamu, the first female orca ever captured, has been dead for 38 years. Isn't it time the world's most famous performing killer whale got her own wax figure?

With private-equity firm Blackstone Group (NYSE: BX), which owns Madame Tussauds wax museums, reportedly in talks to buy SeaWorld and Busch Gardens parks from brewer Anheuser-Busch InBev (NYSE: BUD) for up to $3 billion, a Shamu immortalized in wax may no longer be out of the question.

If this private-equity deal is completed, it would be the biggest in 2009 and one of the largest since the economic crisis began in 2008, The Wall Street Journal reports.

According to the Wall Street Journal, China's government recently has pushed development of its local private-equity industry so that Chinese investors can get in on the country's private-equity deals. To that end, Chinese officials have tried to lure foreign money managers to raise funds from local investors.

Hong Kong-based First Eastern Investment Group, which plans to raise six billion yuan through a new wholly owned Shanghai subsidiary, and Asian brokerage CLSA Ltd., which plans to raise a 10 billion yuan fund through a joint-venture with state holding company Shanghai Guosheng Co., are just the latest to establish local-currency private-equity funds in Shanghai.

As seen on the Blackstone Group's (NYSE: BX) latest earnings conference call, the firm is trying to find ways to diversify its platform beyond buyouts (this is no fluke as other firms, like KKR, are doing the same thing). One of the areas of interest is actually hedge funds.

To this end, Blackstone made a big hire this week, bringing Byron Wien on board as the vice chairman of Blackstone Advisory Services. Actually, he is leaving Pequot Capital Management Inc., which is a hedge fund that is in the process of closing down (assets were as high as $15 billion). The firm is now faces an SEC investigation regarding trading in Microsoft's (NASDAQ: MSFT) stock. This is according to a report in the Wall Street Journal [a paid publication].

It looks like Wilbur Ross and John Paulson have some company.

Ross, who runs the private equity shop W.L. Ross & Co., and Paulson, the chief executive of hedge fund manager Paulson & Co., oppose new rules under discussion in Washington that would make it harder for firms like theirs to buy failed banks.

Now, as the window for public comment on the proposed changes closes, KKR and the Blackstone Group (NYSE: BX), two of the biggest private equity firms, say they too would probably be discouraged by the new rules from buying failed banks after they've been seized by the government.

The market has made a nice rebound over the past few months, and one question is on every investor's lips: Can it continue?

To get an answer, it might not be a bad idea to look at what the private equity firms are planning. Remember when The Blackstone Group (NYSE: BX) decided to cash out with an IPO and it marked the exact top of the private equity boom? Take a look at how that stock has performed since then.

Well, now The Financial Times reports that "Kohlberg Kravis Roberts, the world's biggest buy-out group, is preparing up to six companies for initial public offerings worth billions of dollars, including Toys 'R Us, as it sells some of its most valuable groups back to the stock market."

Wilbur Ross isn't happy about a proposed overhaul of the rules that govern deals between the government and private investors for the assets of failed banks.

Ross, who runs W.L. Ross & Co., joined with a handful of other big private-equity investors to buy the remains of Florida's BankUnited after it was seized by regulators in May. But if the new rules pass, "I assure you that my firm will never again bid if the proposed policy statement is adopted in its present form," he reportedly wrote in a letter to the Federal Deposit Insurance Corp.

Blackstone Group co-founder Peter Peterson has elected to donate $1 billion -- which he calls the "vast majority" of his "net proceeds" from the company -- to his very own Peter G. Peterson Foundation. The foundation's mission statement on its website reads:

Our mission is to increase public awareness of the nature and urgency of key economic challenges threatening America's future and accelerate action on them. To meet these challenges successfully, we work to bring Americans together to find sensible, sustainable solutions that transcend age, party lines and ideological divides in order to achieve real results.

Not long ago, the private equity firm, Fortress Investment Group LLC (NYSE: FIG), appeared to be in deep trouble. But things are looking better now, as the stock price has gone from $1 to $4.65 this year.

In fact, Fortress is now pulling the trigger on some deals. Just this week, the firm teamed up with Crestview Partners LP and Lightyear Capital LLC to invest $450 million in First Southern Bancorp (Lightyear is operated by Donald Marron, who was the former chief of PaineWebber Group).

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

With global markets in turmoil – and as the credit crunch worsens – AIG (NYSE: AIG) has the miserable task of raising $75 billion to meet its capital requirements. The firm has talked to various private equity firms, who have basically wanted the keys to the operation. There were even talks with Warren Buffett.

No doubt, AIG is scrambling to assess its asset base as well. Which could fetch good values?

Interesting enough, there is one asset that hasn't received much attention: an equity stake in Blackstone Group LP (NYSE: BX).

About 10 ears ago, AIG invested roughly $150 million in the private-equity powerhouse. Now, the stock is worth about $700 billion. Moreover, AIG has investments in Blackstone funds that amount to about $1 billion.

So yes, AIG may dump these holdings on the market – and put pressure on Blackstone's shares, right?

Perhaps. Although, investors don't seem to be concerned (the stock price has held steady in the current financial storm). Then again, Blackstone doesn't have balance sheet issues. More importantly, the firm has been bulking up its abilities to capitalize on distressed investments – which seems spot-on right now.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

With bulging coffers, U.S. private equity firms have been aggressively expanding into foreign markets. One of the big players is The Blackstone Group LP (NYSE: BX).

According to a piece in the Financial Times, it looks like Blackstone is taking a look at Informa Plc, a UK publisher.

Actually, it looks like other major private equity firms, such as Providence Equity Partners Ltd. and Carlyle Group, are swarming over the company.

Informa was formed, in 1998, as the result of a merger of the IBC Group plc and LLP Group plc, but if you take a look at the various businesses, the roots go back to 1734 with the first maritime publication.

As of now, Informa has operations in 40 countries and about 10,000 employees. Moreover, the firm organizes more than 10,000 events and conferences a year. There are also 2,500 subscription based information services.

In other words, Informa has a fairly steady business, with strong recurring revenues.

Interestingly enough, last month Providence Equity made a preliminary overture for Informa for about $4.29 billion. But getting debt financing won't be easy.

Then again, in the case of Blackstone, it might not have to worry about such things since it looks like the firm is teaming up with the cash-flush Dubai World Trade Center sovereign wealth fund.

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

According to The New York Times, everybody's doing it! Well, maybe not the birds and the bees, but certainly Blackstone (NYSE: BX), KKR, and now Apollo Management, the latter to the tune of $1 billion, are investing in distressed debt.

It's no surprise that Blackstone is ahead of the game and has already raised a $1.4 billion fund to focus on cheap loans and bonds. The Deal.com also lists Cerberus and Carlyle as being interested in joining the party.

Apollo's Leon Black wrote in a letter to investors:"We're doing exactly what you would expect of us in this market -- using our distressed expertise and appetite for complexity to find investments in good companies that are available at a significantly discounted basis."

Luckily for Apollo, they happen to own some of those "good companies" that are "significantly discounted." So some of the bonds it will invest in will be issued by companies it already owns. Neat trick, huh?

As for the "appetite for complexity" -- I'll bet. Blood from a stone, anyone?

With the severe credit crunch, the private equity world has come to a screeching halt. Sure, there is some dealmaking – but nothing like it was just a year ago.

So, what are the private equity folks doing? Well, they are raising billions of dollars. This is according to a piece in the FT.com (subscription required).

Although, the typical investors in private equity funds, such as pension funds, are actually losing their appetites. There are concerns about lower returns as well as larger concentrations of portfolio risk. Just look at the recent write-downs at KKR.

Yet, the top-tier private equity firms are still having little trouble raising money. TPG plans to snag $15 billion and Apollo should also get the same amount. And, as for Bain and Blackstone (NYSE: BX), it looks like they'll get $20 billion apiece.

OK, so where is the big money coming from? Yep, it's the sovereign wealth funds. With bulging coffers – especially from oil – the money needs to go somewhere. And, with lower valuations and distressed companies, it could be spot-on timing for those with a long-term perspective.

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

Alliance Data Systems (NYSE: ADS) is recently at $39.00 in pre-open trading, below its close of $65.60. ADS says affiliates of The Blackstone Group (NYSE: BX) have informed ADS that they do not anticipate closing the merger due to problems obtaining approvals from the Office of the Comptroller of the Currency (OCC).

ADS announced on May 17, 2007 it would be acquired for $81.75 in cash ($7.8 billion) by BX. ADS is expected to announce Q4 EPS on January 30. ADS February option implied volatility of 105 is above its 26-week average of 41 according to Track Data, suggesting larger risk.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com