The Blackstone Group, the global investment and advisory firm, has announced the appointment of Martin Donnelly as managing director of its Sydney, Australia office.

Donnelly, who joins the company from ING Investment Management Australia, where he was deputy chief executive officer, will head the business development and client relations functions in the country and the Pacific Rim for Blackstone Alternative Asset Management. BAAM provides hedge fund solutions for institutional investors.

"As investors look both for attractive returns and capital preservation, they are increasingly turning away from traditional investment vehicles to customised solutions, using tailored combinations of hedge funds and other proprietary exposures," J Tomilson Hill, vice chairman for Blackstone and head of BAAM, said in a statement.

Donnelly joins Philip Levinson as the second managing director for the Sydney office.

Australia has a continuously expanding market for alternative investment products, particularly after the 2008 crisis resulted in many investors turning away from bank-related activities. As of 31 December 2010, BAAM records $33 billion in assets under management worldwide.