Ive studied finance, it was my major at Georgetown, and I was hoping to get a job somewhere, and I got a job at Morgan Stanley which way exceeded my dreams at that point. BARATTA: Well, I would say in my 25-year history at Blackstone, there were certain industries that were growth industries that we were investing in in the mid 90s and late 90s and early 2000s, that now are no longer investable. BARATTA: Yeah. I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to consumers. Mr. Baratta owns over 85,000 units of Blackstone Inc stock worth over $99,814,339 and over the last 3 years he sold BX stock worth over $81,255,679. It seems like private equity is qualitatively different than it was back in the early days. As for the right way, the correct way, and the only way, it does not exist. He was the senior guy at that time. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. So warm sunshine, no interest? Theres definitely been proof of concept for large scale institutional investors and even retail investors, that we can produce sustainable, predictable, above public market returns. RITHOLTZ: Really interesting. Joe Baratta, The Blackstone Group: Profile and Biography - Bloomberg Markets Bloomberg TV+ Bloomberg Surveillance: Early Edition Bloomberg Surveillance: Early Edition with Francine Lacqua. And the fact that financing costs are higher, kind of its neither here nor there because our returns are not predicated really on the cost of financing. This website uses cookies, including third-party cookies, in order to obtain information about your visit to the website and make this website better. The whole dressing custom, yeah. Blackstone's Buyout Head Is Eyeing Public Companies You can take margins up. Even when you read that announcement from that was 2012 . And there, we were two young Americans, no language skills, like what are we supposed to do? RITHOLTZ: Really interesting. To view recent press releases,click here. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. Terms and Conditions. But Mayer and a former Disney colleague, Tom Staggs, had a different pitch: Would Blackstone back a brand-new media company they were forming that would tap into the gusher of money going into streaming? And I think people just need to relax, take a deep breath. You have to have like an open mind and realize that things are changing. RITHOLTZ: We take for granted totally that youre out in a car, you can pull over anywhere and tank up with gas. But youre not wrong, I mean, theres different names within the individual businesses, but we all work at Blackstone. Blackstone was right on their heels back then. RITHOLTZ: Makes a lot of sense. I mean, at least, it was back then. And they had like bottles of Bordeaux on the conference room table. April 15, 2023 10:00am by You know, in the market, its like if you start at the wrong time, if youre wrong for a few quarters, like, boom, like the career is abbreviated. Disputes over compensation and firings, and potentially over layoffs, could push both sides into fresh legal battles. Its not just power generation from those sources, but its companies that are involved in consulting, in utility services, in companies that make components that are helping electrify the economy, in electric vehicles or in HVAC systems. Is this just part of the life cycle of business, or do you go through these periodic spasms where everything changes? You see these things before they start to show up in the economic data. Industry structures are changing. Ive been a Dallas Cowboys fan since Im 7 years old. When I came to the city, I was like, wow, this place is amazing. He joined Blackstone . And you have to enjoy that process and enjoy like the time it takes. Its very hard for us to assemble much more than a $5 billion equity check. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. Clever. So I read a quote of yours that cracked me up, I have to ask you about, you said if you werent working in private equity, the next best job would be general manager of the Dallas Cowboys. We never have to sell, only when we want to because we control the companies. Blackstone is one of the worlds leading investment firms. It sounds like a good background for someone who eventually ends up buying companies. Joseph Baratta on the Future of Private Equity Masters in Business Investing Bloomberg Radio host Barry Ritholtz speaks with Joseph Baratta, who has served as global head of private equity at Blackstone - the world's largest alternative asset manager, with $975 billion in assets under management - since 2012. . BARATTA: I agree with you, I mean, 100 percent. RITHOLTZ: How did you first get involved with them? But were seeing solid demand. From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. Global Head of Private Equity, Joe Baratta, shared insights on how Blackstone is thinking long-term in this business cycle and how investors can prepare - by focusing intently on sector &. RITHOLTZ: So lets talk about some of those different types of funds. BARATTA: Not a bit, not a bit. And there are thousands of companies in the U.S. . Joe Baratta to Join Blackstone's Board of Directors Blackstone Hires Droga5 Chief Strategy Officer Jonny Bauer To - Forbes Joseph Baratta on the Future of Private Equity - Apple Podcasts RITHOLTZ: Lets talk a little bit about your career at Blackstone. And I thought private equity was interesting because you could live with those investments for a longer period of time. Blackstone: long-life private equity funds 'now an asset class' You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. BARATTA: I mean, with all respect to the Joneses who run that team, you know . "For any professional investor, this is the most difficult period we've ever experienced . The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. Talk about linear TV , BARATTA: there were two games, one at 10:00, one at 1:00, and the Cowboys playing in the NFC East. The Tate Foundation is the private philanthropic arm of the Tate that helps fund special projects, whether its exhibitions or building new buildings, you know, the big Tate Modern gallery was, in large part, funded by private donations. BARATTA: Roger Staubach, Tony Dorsett, Tony Hill, those guys. Its really quite fascinating. BARATTA: Yeah. JOSEPH BARATTA, GLOBAL HEAD OF PRIVATE EQUITY, BLACKSTONE: Thank you. I think were 4,500 , BARATTA: or something like that. BARATTA: Its certainly investable for venture investors and smaller guys who are willing to sort of dig holes in the ground and hope something comes out. And its cool and, you know, Bitcoin or whatever, theyre just probably a real store of value. And then at Blackstone, you know, Steve Schwarzman changed my life; and Tony James, who when I was about four years into Blackstone, really helped transform the firm and make it what it is today. Switchboard:+1 (212) 583-5000. BARATTA: Yeah. So, yeah, theres a few companies where Im closely involved, and I sit on the board and I help their management teams plot strategy and deal with important strategic issues. Our People - Blackstone And the total AUM of our private equity business, AUM assets under management is roughly $80 billion, $90 billion. You know, that did not happen when we were kids. RITHOLTZ: and they then diversify and or Im sorry, they made them divest those vertically integrated holdings? While Qatar has reportedly spent $200 billion or more, most nations are now unwilling to spend a fraction of that on money-losing mega-events like the World Cup or the Olympics. Jesuit Announces Million Dollar Donation to School's Tuition Assistance So I think the large end of the market we think is the most attractive. We were trying to figure out whether any of these assets were investable, said Baratta, global head of private equity at Blackstone, referring to media companies. No, no, thats I mean, the firm is called Blackstone, period. And so, thats what we were able to do to a large degree, is to become more conservative, to become more cautious on valuations, you know, as we started seeing evidence of inflation, and thinking that rates were probably going to go up at some point. RITHOLTZ: Well, so far, youre pretty interesting. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. Disclosures Transcript: Joe Barratta of Blackstone April 18, 2023 8:00am by Barry Ritholtz The transcript from this week's, MiB: Joe Barratta, Blackstone's Global Head of Private Equity, is below. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. Lets start out with just a little background on your career. RITHOLTZ: You start out in California. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. BARATTA: We leaned into exiting what we could in that period. And it also happens to be a production of one of our portfolio companies, Hello Sunshine. Joseph Baratta Net Worth (2023) | wallmine You werent taken seriously. There are 23 older and 2 younger executives at Blackstone Inc. And we were like, look, wed be great partners as youre looking at assets. I have to point out that your life history is a series of ever-worsening weather. So thats been a really important book Ive read recently, and I think hes great. Abraham Shafi has stepped down as CEO of messaging app IRL following allegations that the company used bots to inflate the users it reported publicly and to investors, according to a person with direct knowledge. So you move to the U.K. RITHOLTZ: Youre an hour to hop from all the key places . And like I said, those companies arent too big to make good returns with. And weve become better at what we do in buying control of companies, engaging with them, making them better, helping them grow. Get subscriber-only insights and news delivered by Barry daily. So I wanted to get a job at a private equity firm. RITHOLTZ: And you had mentioned private credit before, that seems to have been a giant growth area, especially when rates were at zero, when people arent seeing a whole lot of returns from fixed income. And so we sort of followed our real estate colleagues, where they went and establish a toehold, became successful. RITHOLTZ: Yeah. BARATTA: Yeah. Disclosures Both in terms of the aggregate revenue of our company, size of our portfolio, were probably now something like 150 total investments, many hundreds of billions of revenue, hundreds of thousands of employees if you add up all of the companies in which were invested. Paris Wald is my producer. RITHOLTZ: You see that on the private market? We cant do that. I mean, I was in my mid-20s and, you know, looking to build a career in private equity. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. And within Blackstone, our private equity funds are called Blackstone Capital Partners. BARATTA: Well., they definitely did that. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land What attracted you to them in 1998 when they were still kind of a modest, small firm? Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . RITHOLTZ: Really interesting. The dot-com had just imploded. Those do seem to be valued relatively more attractively. Inflation is significant. BARATTA: crisis. Am I exaggerating that at all or . Hes way more interesting than me. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. Clearly, there was a ton of hype in crypto. RITHOLTZ: And you guys, your bread and butter is not forecasting the economy. You get paid for the incremental risk that youre taking in a more leveraged capital structure. Energy has been a major investment theme across many of our businesses in credit and corporate private equity. I had no language skills. at the top of the firm, you know, Steve, John, a few others of us who are on the management committee are really able to push down into the organization like what were seeing and to change investment behaviors. And so, you know, my base case was that it wouldnt and youd have like called it wonkily like mean reversion in global cost of capital, which means rates would go up, market risk premiums would go up, you know, PE multiples would come down, credit spreads would probably gap out. BARATTA: That was very yeah, and you couldnt wear brown shoes. I mean, I knew nothing about finance. Its been almost a year. And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. We use cookies for a number of reasons, such as keeping The Information reliable and secure, personalizing content and ads, providing social media features and to analyze how our sites are used. Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. As of 1 April 2023 he still owns at least 1,145,448 units of Blackstone Inc stock. I started at Blackstone in July of 98, and I guess what was going on that year, you had like a Southeast Asian currency crisis. RITHOLTZ: tell us about Blackstones boss. How Greed and Easy Money Corrupted Wall Street and Shook the World Economy JosephBarattais the Global Head of Private Equity and a member of Blackstones Board of Directors. BARATTA: I mean, theres no question that financing costs are higher, both debt and equity, which is a healthy thing because I think the global cost of capital was too low, induced by super low rates and capital allocation to riskier assets, institutional investors chasing return. Two years ago, Joe Baratta couldn't figure out what Blackstone, the private equity giant he worked for, should do for its next move in media and entertainment. Big software companies including Microsoft and Salesforce are racing to incorporate the technology behind ChatGPT, known as generative artificial intelligence, into their products to attract new users and boost profits. Blackstone on LinkedIn: Global Head of Private Equity, Joe Baratta Business models are changing. And in fact, I invited him to come talk to our partner group. The most active insiders traders include James Breyer, Hamilton E James, and International Group Incaig . BARATTA: Yeah. BARATTA: Like, it probably isnt going to happen forever. Elon Musk May Yet Meet Twitter Executives in Court - New York Times BARATTA: Yeah. Its where we have competitive differentiation, and its where you find better quality businesses. You know, I sort of looked at, well, the industry in Europe is a good decade or two behind the U.S. As for the right way, the correct way, and the only way, it does not exist. And we were kind of oddities at that time, particularly in private equity which was still really in its infancy. Now, the firm had assets. RITHOLTZ: Tell us what that growth has been like over the past 25 years? That had to be a giant challenge, especially given what was taking place. We find great management teams. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of. But, in financing acquisitions and capital needs of these middle market companies, the private credit market has played an important role in that. RITHOLTZ: So youre anticipating one of the questions Im going to ask you, which I might as well bring it up now. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. But I cant explain it. I think because the private equity investing model has been really good for our clients, which are state pension plans, sovereign wealth funds, you know, ensuring the retirement safety of many tens of millions of people. What was it like on the private side at the end in the 90s? So that is one sector that were investing, and that a decade ago, we wouldnt. Atika Valbrun is our project manager. So youre raising the bar. Blackstone's global head of private equity, Joseph Baratta is in contract to pick up a sweet 6-story townhouse from music mogul Lyor Cohen (he's Tory Burch's boyfriend), the NY Post reports.. RITHOLTZ: Oh, really? How do you keep all that straight? RITHOLTZ: in prices. And we want to invest not just in digital virtual assets, but also in physical assets. BARATTA: Yeah, right after I graduated college, I went to Georgetown in 1993. He also sits on the firms Management Committee. By the way, my wife loves the Tate Modern, one of her favorite museums. How did the buildout go for a couple of young Americans saying, hey, we want to play with this private equity thing in the EU? RITHOLTZ: Similar to U.S. antitrust rules . Sometimes we buy things from our competitors, particularly if we think we can make them a lot bigger through acquisition or other things. The largest trade he's ever made was selling 434,815 units of Blackstone Inc stock on 4 August 2020 worth over $23,045,195. Read deeply reported stories from the largest newsroom in tech. So we share themes and we share these economic signals. BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest, Joe Baratta is the Global Head of Private Equity at PE giant Blackstone, where he has worked since 1998. You got to get it elsewhere. Joseph Patrick Baratta Global Head of Private Equity Were hiring summer interns now who are 19 and 20 years old. What are you reading right now? RITHOLTZ: I was waiting for you to say, and it was 10:00 a.m. and they broke open the bottles of Bordeaux. RITHOLTZ: A broad spectrum of different holdings. The modern day striker has to be many things to make it to the top. Joseph Baratta is the Global Head of Private Equity and a member of Blackstone's Board of Directors. Is this simply becoming institutionalized, or has the asset class been validated and now people are treating it differently than they did in the 90s where it was kind of a small niche , RITHOLTZ: backwater? And the cost of financing and the quantum isnt the biggest driver of our returns. Overnight on Wall Street is morning in Europe. RITHOLTZ: Really quite interesting. The spokesperson for the company, previously valued at $1.2 billion when SoftBank invested in it in 2021,declined to offer details on the misconduct Sequoia Capital Hired National Security Advisory Firm as China Deals Draw U.S. BARATTA: Yeah. BARATTA: Wind, solar, electrifying the economy, getting off of oil and gas, and its all kinds of companies engaged. RITHOLTZ: You dont have the same labor costs. It has to be useful if you have skills. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. So certain elements of technology, particularly in software, we think are much more attractive than they were a couple years ago, not to say they look overwhelmingly cheap, but certainly more attractive than they were.

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