May 22 (Bloomberg) -- Tate Modern in London announced its largest individual donation, with a commitment of 5 million pounds ($9.87 million), from John Studzinski, of Blackstone Group LLP.

The money will go toward the expansion of the Tate Modern with a new building on the south side. The London Development Agency has already committed 7 million pounds to fast track the building, so that it is ready for London's hosting of the Summer Olympic Games in 2012.

``This first really major donation is crucial,'' Nicholas Serota, director of the Tate, said in an interview after a press conference at Tate Modern today. Serota said Studzinski is ``well known in the banking community. There are other people interesting in collecting and the visual arts who will be stimulated by his example.''

The Tate receives public funding via the Department for Culture, Media and Sport, and raises twice as much. This money comes from various sources, including corporate hire, partnerships and sponsorship, exhibitions, shops and cafes.

Studzinski has been a Tate trustee since 1998. He joined Blackstone from HSBC Holdings Plc last year.

The Tate's income in 2005-06 totaled 97.62 million pounds. Of this, the museum received 31.80 million pounds in aid from the government and generated 65.82 million pounds of its own.

In 2004, the Tate started an initiative to sustain and develop the collection, with pledges of gifts by artists including Anthony Caro, Antony Gormley, Anish Kapoor and Paula Rego. The campaign, Building the Tate Collection, aims to obtain works through loans, gifts and bequests, while creating a cash endowment for acquisitions, research and conservation.

To contact the reporter on this story: Richard Vines in London at rvines@bloomberg.net.

Last Updated: May 22, 2007 09:03 EDT