FIRB chairman Brian Wilson joins Carlyle as adviser

FIRB chairman Brian Wilson is joining private equity giant the Carlyle Group as a senior adviser to its Asian team.

Foreign Investment Review Board chairman Brian Wilson. Picture: Larry Anda

Foreign Investment Review Board chairman Brian Wilson has accepted a role as adviser to the $180 billion private equity giant, the Carlyle Group, potentially putting the former investment banker in conflict when it comes to giving the green light or blocking key foreign investment moves.

The US-listed, Washington-based private equity group, which has completed more than $2bn worth of deals in Australia and more than $20bn worth in Asia, yesterday said Mr Wilson would become a senior adviser to its Asian buyout team.

However, Mr Wilson, who plans to remain in his current role at FIRB, has promised to stand aside from any decision involving Carlyle, the private equity fund that has a string of investments in Australia and through Asia.

Mr Wilson’s new role comes amid increasing sensitivity around foreign investment in Australia after FIRB has recommended the rejection of two major deals that involve Chinese investors — a bid for pastoral company Kidman and another for NSW electricity company Ausgrid. The Ausgrid decision in particular has led to confusion over the role of foreign bidders for major assets in Australia, particularly bidders from Asia.

The Sydney-based Mr Wilson will be working with Carlyle’s Asian buyout team looking for new investment opportunities in Australia and the region.

Mr Wilson yesterday told The Australian his role as an adviser to Carlyle was in a part-time ­capacity “akin to that of a non-executive director”. He said he would recuse himself from any decision involving the Carlyle group if it came before FIRB.

Mr Wilson said acceptance of his new role with Carlyle did not mean he was planning to leave his role as chair of FIRB.

Scott Morrison said FIRB had “strong procedures in place to manage conflict”.

“FIRB needs to attract people with deep knowledge and experience in foreign investment,” a spokeswoman for the Treasurer said yesterday.

The spokeswoman said Mr Wilson had advised the Treasury of his appointment and had “agreed to remove himself from consideration of any cases that Carlyle is involved in”.

Carlyle’s recent investments in Australia have included stakes in logistics company Qube, Coates Hire and private hospital company Healthscope. It has sold its investments in Healthscope and Qube, but retains an interest in industrial equipment hire company Coates Hire, which it bought in January 2008 with Seven Group executive chairman Kerry Stokes.

Significantly, Carlyle has been an active investor in China with investments in the Haier electronics, China Fishery Group, online market place 58.com, vending machine company Beijing Ubox Technology, Haier Bio-Medical and Laboratory Products and Meinian Onehealth Healthcare group.

Opposition treasury spokesman Chris Bowen said he trusted that “the Treasurer and Mr Wilson have put in place appropriate measures to ensure the avoidance of any real or perceived conflict of interest arising”.

Mr Wilson said he was “delighted to partner with an organisation that has an outstanding track record of investment and value creation”.

“I look forward to working closely with the team to assist as it pursues new investment opportunities across various sectors in Australasia and to create value for Carlyle’s portfolio companies,” he said.

Carlyle said Mr Wilson would be advising on “key trends, support investment due diligence and serve on portfolio company boards”.

Hong Kong-based Xiang-Dong Yang, managing director and co-head of the Carlyle Asia buyout team, said the firm was “thrilled to welcome such an experienced business leader as an adviser”.