Blackstone Group is a private equity firm, but like its big name competitors, it sees the value--indeed, the necessity--of diversification. For the second quarter, revenue from financial advisory work rose 62.4 percent from a year earlier, to $135.6 million, notes IDD . The corporate advisory and restructuring operations are indeed growing fast, employing 185 professionals.

John Studzinski, formerly of HSBC, heads the corporate advisory group and is pushing the firm into new markets. He has opened in Paris last year and in Hong Kong in 2008. Blankstone is eying markets in China and European centers, among other places.

The firm is also seeking more business creditors. In the past, it has been hired mainly by debtors. But work for creditors has been climbing, and will likely go even higher.

Blackstone deserves credit for leaning against the wind by diversifying into a hot area as the core private equity market slowed down. We may see another reversal, as the economy mends and workouts slowly. At some point, the firm may opt to move deeper into investment banking.

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