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And I know the size, it was 32, 33, 34, $35 billion. How often does a new business model come along thats really notably different from what preceded it? Im assuming you guys . You got to get it elsewhere. Thats interesting. I recognized that it was still pretty early in the development and there should be a lot of growth in these firms. RITHOLTZ: Really intriguing. And it also happens to be a production of one of our portfolio companies, Hello Sunshine. But, like, really, our preference is to do it just by ourselves. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. Mr.Barattaalso worked at Morgan Stanley in its mergers and acquisitions department. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. On average, Blackstone Inc executives and independent directors trade stock every 59 days with the average trade being worth of $43,777,685. RITHOLTZ: To say nothing of two people separated by a common language, right? 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. And the size of our private equity business is you know, were now on our ninth fund. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land and the Dallas Cowboys Baratta's shares his New Year's resolution, books he's reading and high and low career moments, as well as his fantasy management role in the NFL. I mean, it was certainly not expected. But, in financing acquisitions and capital needs of these middle market companies, the private credit market has played an important role in that. 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. As an example, the firm invested in Reese Witherspoons production company Hello Sunshine versus the legacy cable and satellite firms. I mean, there have been leveraged loans and high yield bonds since the 1980s. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. For a brief while, we had an office in Hamburg. When Baratta led private equity giant Blackstone Group's 102 million ($136 million) deal to buy Merlin Entertainments in 2005, the U.K. theme park group was best known for the macabre London. Joseph Baratta is Global Head of Private Equity and a member of the firm's Management Committee. Exclusive: Blackstone grooms six executives for Schwarzman's job BARATTA: If Apple decides it wants to buy something for, you know, 10, 20, 30, 40, it doesnt blink, and there are a lot of companies like that. By the way, my wife loves the Tate Modern, one of her favorite museums. As for the right way, the correct way, and the only way, it does not exist. RITHOLTZ: I never would have guessed that. BARATTA: That was very yeah, and you couldnt wear brown shoes. So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. I remember completely empty plane flying over to London , BARATTA: with my then girlfriend, moving to London. How do I contact Joseph Baratta? "The current volatile and unpredictable environment reinforces . Thank you, Joe, for being so generous with your time. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. Baratta, who joined the firm in 1998, is also a member of the board of directors and serves on multiple management committees, as well as the firms investment committees. But I dont think were going to go back to the days of 2019 to 2021. And really, most of our expansion started with our real estate business, because its a little bit easier to expand globally in real estate because its more asset-based rather than like . The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. We actually have assets where those are going in, or were investing in components that are part of . RITHOLTZ: youre stepping right into the thick of it? BARATTA: But these sort of Americans were tolerated, you know? It feels like were very early stages of transitioning to being able to pull up somewhere and spend 10 minutes charging the car to get you another 100 miles or so. And I think people just need to relax, take a deep breath. So I actually think, at the large end of the private equity market, were undercapitalized. BARATTA: that are $10 billion to $15 billion-plus enterprise value company. To me, this world is normal, not abnormal, with, you know, positive real interest rates. Feel free to sign up for my daily reading list at ritholtz.com. And there, we were two young Americans, no language skills, like what are we supposed to do? Its really quite fascinating. The big TV companies, such as ViacomCBS and Discovery, were bleeding viewers as people cut the cord to cable television and streaming powerhouses like Netflix grew ever bigger. RITHOLTZ: And everybody started drinking and we looked at each other, can we have a drink that morning? It sounds like you can scale up by partnering with lots of other PE firms. He helped to build out Blackstones PE business in Europe in 2001, moving to London in 2001. To receive email alerts from Blackstone, sign up below. But for listeners, you know, you dont have the same capital costs. RITHOLTZ: But youre still dealing with a lot of European at that time. Of course, I mean, France, Germany, Italy, Spain, you know, the whole Nordic region, Sweden, theyre not . Elon Musk May Yet Meet Twitter Executives in Court. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. You saw it in the financial services sector. Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. Is there a ceiling, or at what point you look at something and say, hey, thats just too big to try and take a bite on? Those do seem to be valued relatively more attractively. It is an institutionalized asset class. Id never lived abroad. For information on our privacy practices see our Privacy Policy. Deadly. Privacy Policy But if we can find a great business at a reasonable price in Europe, were going to buy it. RITHOLTZ: At what point does size become the enemy? Were always on the 10:00 a.m. game and it was Americas team. India is very attractive. There werent that many firms. So taking advantage of the currency declining, a lower cost base in India, but revenues denominated in dollars or euros. BARATTA: Exactly. I have to point out that your life history is a series of ever-worsening weather. In private equity, you know, were owning things for 5, 6, 10 years and were not subject to, like, the vicissitudes of the market in the short run. BARATTA: No, no. 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. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, YouTube, Stitcher, Google, Bloomberg, and Omny. And as an asset class, theyve performed extremely well, with low incidence of loss, good returns. BARATTA: Yeah. 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. RITHOLTZ: Yeah, supposed to be sort of loosely fashion day . Because people start so early, you have to do so much to get in college. The most recent stock trade was executed by Joseph Baratta on 1 April 2023, trading 85,000 units of BX stock currently worth $7,337,200. RITHOLTZ: Lets talk about books. So it was a beneficiary of the technology change. RITHOLTZ: Really interesting answer. What is it like being on these boards? 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. Clever. It kind of helped us get off the ground, so to speak. Financial Advisors, visit our dedicated website to learn how you can partner with Blackstone. Like I said, theres a few fundamental enabling technologies that happen, ubiquitous broadband, internet to your house to your mobile device, which really enabled a change in retail and media models and communication models, and now this. One of the things that I have to follow up with is how important was it partnering with local other investors and other VCs or PEs? Blackstone, as a brand name, was becoming more known just everywhere, but in particular in Europe, because we werent particularly well known at that time. RITHOLTZ: So lets talk about geographies, and lets talk about sectors. We cant do that. But youre not wrong, I mean, theres different names within the individual businesses, but we all work at Blackstone. High-yield junk bonds still 'frothy': Blackstone - Yahoo So its been a great asset class. Its where we have competitive differentiation, and its where you find better quality businesses. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. BARATTA: and nice calling card. RITHOLTZ: I can imagine. In the short run, there can be distortions in public market valuations as we saw in 2001 and we saw prior to that in 2007, and prior to that in 2000, in 99. Meaning, your team, your group would be a Fortune Top 20 Company. And they introduced me to and I wont name names, hes a wonderful guy. BARATTA: crisis. Were seeing some companies have less pricing power maybe than they had a year ago. And there are many more $10 billion companies today than there was 12 or 15 years ago. And so, you know, that was kind of the strategy Day 1. We hired an Italian for the firm, Andrea Valeri. Sebastian Escobar is my audio engineer. RITHOLTZ: You know, when there is no alternative, people just pile into equity. Private credit deals tend to be sold for plus. But I love the announcement when you were promoted to Global Head of PE from Blackstone, they said the 73 investments and pending deals youre involved, and combined for $117 billion in revenue, the equivalent of the 13th largest company by revenue on the Fortune 500 list. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? So youre raising the bar. RITHOLTZ: Yeah. You see it in real-time across real estate, across labor . Im assuming these are both related M&A-type . You began more or less in the M&A space at Morgan Stanley, is that right? Joe reflects on what the end of easy monetary policy and near-term growth headwinds mean for investors. RITHOLTZ: I wonder, do fundamentals matter more, or is it really just a question of how far away from fundamentals can public equities get, either to the upside or the downside where it creates some form of opportunity, which kind of raises the question, how closely do private market fundamentals track whats going on in the public markets? And we were like, look, wed be great partners as youre looking at assets. BARATTA: Well, one thing that John and Steve have done is to make sure the firm is really joined up across our investment businesses. Inside Blackstone's Plans to Create an Entertainment Empire Do you have to be selfish to be a striker? Whats it like trying to manage a rapidly growing private business, with eventually the currencies became more or less uniform, but different languages, different customs, different culture, different ways of doing business? We do think, at some level, it does affect the cost structures. We find great management teams. BARATTA: And I had very modest expectations like, geez, if I can last two or three years, at least I will have done it. BARATTA: You had stuff going on in Latin America. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. Hours Left50% Off The Information Pro Ends TonightGet Pro. BARATTA: Yeah. We had a global partner off-site in private equity. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. BARATTA: Yeah. 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. There werent that many people. Joe Baratta, The Blackstone Group: Profile and Biography - Bloomberg Markets Bloomberg TV+ Bloomberg Surveillance: Early Edition Bloomberg Surveillance: Early Edition with Francine Lacqua. Paris Wald is my producer. BARATTA: technology. Commitments from new limited partners, along with significant re-ups from Fund I LPs, attest to "more interest in the concept" today relative to four years ago, Baratta said. BARATTA: I mean, as much as we could. You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. Read deeply reported stories from the largest newsroom in tech. Even when you read that announcement from that was 2012 . BARATTA: Yeah. And so, in private equity . So the rate of increases is declining. Its not just like the next deal, the next promotion, the name in the paper or whatever. You go to D.C. You go to New York. I grew up in Sacramento, California. RITHOLTZ: And then we talked about the companies that youre on the boards of, but youre also a trustee of the Tate Foundation, which I assume is related to the giant Tate Museum in London. In the U.K., we own the Savoy Group of Hotels, which is the Connaught and Claridges and Savoy. Individual Investors & Financial Advisors. Scottish & Newcastle was a big brewer up in Scotland at that time. And so, weve pursued, in the last decade, a control strategy, and largely where we are an outsourcing partner, providing a critical component or service to Western companies. Sean Russo is my researcher. RITHOLTZ: Im not being sarcastic. The Fed was saying, no, its transitory or whatever adjective they used. 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: manufacturing those facilities. I was supposed to go over you know, in November, I ended up doing that. Blackstone invests money on behalf of institutions and individuals, including more than 30 million U.S. pensioners. And what sort of input do you give to managements there? But we can, things that are mature, things where weve realized value, sometimes were taking companies public and we can sell stock. So, you know, the answer is we cant really get deals much bigger than, you know, $10 billion to $15 billion done on our own. BARATTA: Like, it probably isnt going to happen forever. So lets talk about your mentors who helped shape your career. Joseph Baratta is 46, he's been the Global Head of Private Equity and Director of the Company of Blackstone Inc since 2020. He also shares how Blackstone's approach backing companies in sectors with secular. Calhoun will lead Blackstone's private equity portfolio management group, which basically means that he will aid CEOs with various operational challenges. RITHOLTZ: in Europe. So, yes, youre right, like, in the long run, fundamentals drive, determine share prices. joe baratta blackstone compensation And then, like I said, theyre very accessible. RITHOLTZ: How important was it finding a local partner to, you know, hook up with them and be able to participate in deals with? 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. Our model is not to run the companies. With no further ado, my discussion of private equity with Blackstones Joe Baratta. We have some assets. And heres this like schmuck from Sacramento, like, you know, 30 years old, like pitching him on why wed be a good partner for him. I mean, I knew nothing about finance. Where are you looking around the world? You know, people knew who we were. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . joe baratta blackstone compensation. RITHOLTZ: Theyre nice sized property, nice set group of . Theres real inflation. RITHOLTZ: So let me interrupt you right there. MiB: Joe Barratta, Blackstone's Global Head of Private Equity April 15, 2023 10:00am by Barry Ritholtz This week, we speak with Joseph Baratta, who since 2012, has served as Global Head of Private Equity at Blackstone - the world's largest alternative asset manager, with $975 billion in assets under management. Theres a little more friction in those types of industries. BARATTA: were probably three times the size as we were in 2012. * * * * * They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. In 2006, 07, 08, you saw the financial crisis. 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. Our People - Blackstone At that point in my career, I was 20 I think 27 years old, I wanted to attach my myself to a firm that I thought really had a lot of growth potential, where I could learn from the best people in the industry, and that certainly was what I found there. But its nothing like it is today. RITHOLTZ: you know, 20, 25 years ago. It was about $3 billion in total size. Blackstone Group is talking to its biggest investors to create a "coalition of the willing" that can buy control of large companies outside its existing funds, according to Joe Baratta, head . It has to be growing. What attracted you to them in 1998 when they were still kind of a modest, small firm? For office-specific contact information, please visitour offices page. That was our first deal in Europe, which was actually a U.S. deal, but we probably wouldnt have done it had we not been there . Why am I talking to him? Brown shoes that are for like, you know . RITHOLTZ: Really interesting. Scrutiny, Apple Drops Lawsuit Against Former Chip Executive Over IP Theft, Coinbase CEOs Pay Shrinks as Stock Slides. He is also a member of the Board of Trustees of Georgetown University; is a trustee of the Tate Foundation; and serves on the board of Year Up, an organization focused on youth employment. So I said, well, what kind of deals worked in the U.S. in the early 90s, in my experience? RITHOLTZ: tell us about Blackstones boss. [1] Early life Born in Sacramento, California, Baratta graduated from Jesuit High School in the Sacramento area in 1989, then Georgetown University, from which he graduated magna cum laude in 1993. Mr. Joseph Patrick Baratta, also known as Joe, has been the Global Head of Private Equity at The Blackstone Group, Private Equity Group since July 2012. 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.. And so, instead of investing in those, we decided to back Kevin Mayer and Tom Staggs, two ex-Disney guys, really well-regarded business guys in the entertainment industry, to build an independent content creation business, which weve done both in childrens content with Moonbug, and in live action entertainment with Hello Sunshine, which was the business that Reese Witherspoon started. 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. RITHOLTZ: So its not like the public markets where you could say sell here, buy there, because you have such obvious prints . And then we started seeing significant signs in inflation, particularly in our real estate business, with rents going up significantly, wages going up across our private equity portfolio, beginning to see pricing power for many of our companies that they hadnt had in a long time. You have your way. 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. Monitor your investments 24 hours a day, around the clock from around the globe. You know, economically, thats a big thing. And also, there are new business models, new media models. But wed prefer to buy things on our own, just Blackstone with our limited partners. People were declaring last summer, were already in a recession. It sounds like a good background for someone who eventually ends up buying companies. I have my way. And I think fundamentals mattered more in private equity than they did in public market investing. From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. stonco lighting catalog. A Blackstone View on the Next Wave of Buyouts - LinkedIn I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. Is this just part of the life cycle of business, or do you go through these periodic spasms where everything changes? Speaking on. MiB: Joe Barratta, Blackstone's Global Head of Private Equity And so I didnt know, you know, what finance was all about. RITHOLTZ: So youre anticipating one of the questions Im going to ask you, which I might as well bring it up now. RITHOLTZ: Really quite fascinating. BARATTA: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. Disputes over compensation and firings, and potentially over layoffs, could push both sides into fresh legal battles. The IOC and FIFA are scrambling to change their ways before it's too late. RITHOLTZ: And when you say Steve, for those people who may not be familiar with . BARATTA: Even more mature companies. BARATTA: where the music is amazing. The global head of private equity at Blackstone Inc. spelled out the conundrum he and the entire buyout industry is faced with: Financing is getting. Long-term fund strategies, only an idea a few years ago, have come of age as investors see early evidence of performance, Joe Baratta, Blackstone's global head of private equity, said in an interview with Buyouts. And I was like, geez, okay, well . The music is great. and Merlin Entertainments Group. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of. Even though the buyout king has no plans to retire, the appointment of Joe Baratta, a 41-year-old dealmaker credited with building up the firm's European buyouts practice, was the latest step. Two years ago, Joe Baratta couldnt figure out what Blackstone, the private equity giant he worked for, should do for its next move in media and entertainment. Its one firm made unified. Its obvious in the public markets, things get frothy. I know the Savoy is in the U.K. and in Europe. Kirk Falconer - January 10 2022 + The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. Previously, Mr. Baratta served as the Senior Managing Director at the Blackstone Group, Private Equity Group. Joseph Baratta Age : 51 Public asset : 567,113,101 USD Country of residence : Unknown Linked companies : Blackstone Inc. - Merlin Entertainments plc Biography of Joseph Baratta Joseph Patrick Baratta is Director & Head-Global Private Equity at Blackstone, Inc. and on the board of 13 other companies. BARATTA: Yeah. Mr. Baratta owns 1,145,448 shares of Blackstone stock worth more than $105,312,489 as of April 20th. Not to say like we executed on that vision perfectly, I mean, we would have made some mistakes, but we definitely became much more cautious when the bull market really ramped up, in particular, post COVID, when not only did you have the low rates which the Fed double down on, you had this huge transfer payment from the federal government . 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. Joseph Patrick Baratta Global Head of Private Equity I liked it, I thought I could build a successful career. You know, you want to be able to control the exit. BARATTA: No. RITHOLTZ: which is very different than the Nordic countries. How ChatGPT is Roiling 13 Software Companies, By Kevin McLaughlin, Aaron Holmes and Anissa Gardizy, Apples AI Chief Struggles With Turf Wars as New Era Begins, In Google Founders Shadow, CEO Pichai Discovered the Limits of His Power, IRLs CEO Steps Down After Allegation of Inflated User Numbers, Former IRL Employee Alleges Company Inflated User Count. What was it like on the private side at the end in the 90s? RITHOLTZ: Oh, really? You know, energy prices are higher. BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. And the cost of financing and the quantum isnt the biggest driver of our returns. I think they were operating at the really top of the industry, really smart people, good track record. So what is $10 billion dollars . Theres really no absolutes. And we want to invest not just in digital virtual assets, but also in physical assets. Joe Baratta, Blackstone Group LP's top private equity dealmaker, can't be too cautious right now. And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. We also discuss how Private Equity has developed over the past three decades from a small $50 billion alternative to a massive multi-trillion dollar investment sector. I think Id been to London Im not even sure Id been to London. Joseph Baratta Net Worth (2023) | wallmine We were much more networked. And for a while, it looked like the lower quality the stock was, the better it did. BARATTA: Roger Staubach, Tony Dorsett, Tony Hill, those guys. It takes a long time to figure out like how you get good at something and the particular way you want to do it. Barry Ritholtz. Blackstone CEO Schwarzman took home $610.5 million in 2020 We dont spend too much time thinking about like when that might end and the ramifications of it. RITHOLTZ: And today, private equity has become immense compared to . Switchboard:+1 (212) 583-5000. RITHOLTZ: So you end up at Blackstone in 1998, at a time when public equity prices became a little unmoored and were on the way up to a real bubble. Thats a pretty good run. Incentive alignment in India has been a harder thing. You werent taken seriously. And in the end, we ended up just buying the U.S. textbook business, Houghton Mifflin. RITHOLTZ: By the way, there are a lot of different names for Blackstone. Get subscriber-only insights and news delivered by Barry daily. RITHOLTZ: Tell us what that growth has been like over the past 25 years? RITHOLTZ: Im halfway through it, really loving it. Switchboard: +1 (212) 583-5000. BARATTA: You know, I had young kids. BARATTA: Well, you have to get him back. And so, yeah, there was a lot of volatility. Blackstone's Joe Baratta: long-life private equity funds 'now an asset Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? Joseph Baratta - Biography - MarketScreener.com Im Barry Ritholtz. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. Nielsen CEO heading to private equity | Fortune Were hiring summer interns now who are 19 and 20 years old.