BARATTA: watch media, changed the way we shop, changed the way we found information. There were a few firms, couple of big leaders like KKR. RITHOLTZ: So its not like the public markets where you could say sell here, buy there, because you have such obvious prints . 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. And I wanted to work in a place that was operating at the highest level, with the smartest people, where I could learn the most, and see if I could hang, you know, so to speak, with the best. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. So, were, were very much open for business in Europe, in the U.K. You know, the conflict has definitely been a drag to some degree in the economy, and introduces some uncertainty. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? RITHOLTZ: Yeah. Mr. Baratta currently serves as Global Head of Private Equity and a Member of the Board of Directors of Blackstone, a leading global investment firm. Jesuit Announces Million Dollar Donation to School's Tuition Assistance And you have to enjoy that process and enjoy like the time it takes. RITHOLTZ: underneath it, because you dont have this obviously, and Im not going to teach you about the private equity business. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. One-on-one with Joe Baratta: Navigating Today's Investment - YouTube Well, if you do this if youve been doing this long enough, which fortunately, I have, since really 1095, you see different cycles, and you see what happens when capital becomes cheap and money becomes easy, and interest rates are lower, not really a factor. Its one firm made unified. So even like undergone dusk could be successful. The IOC and FIFA are scrambling to change their ways before it's too late. RITHOLTZ: Really interesting. For information on our privacy practices see our Privacy Policy. * * * * * Hours Left50% Off The Information Pro Ends TonightGet Pro. RITHOLTZ: How did you first get involved with them? So not a lot of money, you know, get engaged in the arts and really important cultural institution; where in the U.K., its less sort of focused on the elite and more focused on like the democratization of art and culture for the people of the U.K., and I really identified with that. Deadly. Why am I talking to him? Otherwise, we will assume you're OK to continue. Thats interesting. BARATTA: Exactly. And so I didnt know, you know, what finance was all about. Were down to our last two questions, what sort of advice would you give to a recent college grad who was interested in a career in private equity? You have to have like an open mind and realize that things are changing. 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. By submitting this request, you consent to receive email from Blackstone. "This is a platform we will build on in the life. BARATTA: manufacturing those facilities. And, you know, what I sort of decided as well, fragmented industries, where you could drive consolidation that had happened already in the U.S., things like, in the U.K., pubs. How do you keep all that straight? Like, look at Disney, you know, Disney, in large part, was hugely enabled by streaming services because of the amazing content it owned. They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. Now, the firm had assets. 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. RITHOLTZ: First of all, how did you first get involved with them? But youre not wrong, I mean, theres different names within the individual businesses, but we all work at Blackstone. Behind the Deal Podcast: Merlin Entertainments - Blackstone You know, that did not happen when we were kids. Where is the most fertile ground for growth size-wise? Probably somewhere around 2004 or 05, we started doing things by ourselves. BARATTA: I think it was 2005, when we started to look at in China and in India, in particular, and also Japan. Barry Ritholtz. 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. The most active insiders traders include James Breyer, Hamilton E James, and International Group Incaig . We have some assets. But thats not really investable for us. But, like, really, our preference is to do it just by ourselves. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. February 26, 2020 08:15 AM Eastern Standard Time. 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. When did that beckon? BARATTA: Not a bit, not a bit. So, as an investor, you have to be nimble. RITHOLTZ: Right. So we kind of went on, did some missionary work, meeting the local private equity firms in France and, of course, in the U.K., in Germany, up in the Nordic region, in Italy, and we just met all the other players. It changed the way we communicated with each other. 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. We hired an Italian for the firm, Andrea Valeri. RITHOLTZ: So lets talk about some of those different types of funds. It was a small industry. From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. But what it is, is we have to figure out what businesses are going to be disrupted and avoid those, and figure out what mature businesses will be enabled by this and invest in it. 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. Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. Joe Baratta is preparing for a new world. So its been really significant growth. Youve been there for 25 years. So the rate of increases is declining. NEW YORK-- ( BUSINESS WIRE )--Blackstone (NYSE:BX) today announced that Joe Baratta, the firm's Global Head of Private Equity, will join its . For office-specific contact information, please visit our our offices page. Joseph Baratta is Global Head of Private Equity and a member of the firm's Management Committee. And, you know, I needed to earn some money and I was adept in finance. 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. BARATTA: Yeah, thats part of it. Blackstone's Baratta Buys Townhouse - Business Insider Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. Joe Baratta, Blackstone's global head of private equity, says even though loan markets are not really open right now Blackstone is well-suited to have access to capital. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. RITHOLTZ: Well, so far, youre pretty interesting. And like I said, those companies arent too big to make good returns with. His current reading is here; A transcript of our conversation is available here Tuesday. And the cost of financing and the quantum isnt the biggest driver of our returns. Theyre predicated on buying a good business, doing something to make it grow more quickly, and having an attractive exit when we come to sell it, which means it has to be a good business. And, you know, why is that? This website uses cookies, including third-party cookies, in order to obtain information about your visit to the website and make this website better. 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. BARATTA: You had stuff going on in Latin America. BARATTA: Well, its not necessarily a problem to do that with some of our friendly competitors. I guess you kind of forget, hey, when stock prices come down enough at a certain point, that valuation becomes really attractive, if the assets themselves are productive enough. And so, you know, that was kind of the strategy Day 1. You had a longer period of time to figure out if you were right or not. We combined it with another one. We have been speaking with Joe Baratta. All of our earlier podcasts on your favorite pod hosts can be found here. BARATTA: They had bought a bunch of educational publishing assets, including U.S. textbook company, Houghton Mifflin, back when there were actually textbooks in schools. 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. Joe Baratta to Join Blackstones Board of Directors To view recent press releases,click here. To receive email alerts from Blackstone, sign up below. So our strategy was, and sort of David had conceptualized, like, were going to be the neutral Americans who can work with the local European firms to help them get deals done. BARATTA: Like, it probably isnt going to happen forever. Thank you, Joe, for being so generous with your time. You guys seem to play across a lot of different sizes. RITHOLTZ: So we see a lot of hype business come along. So lets talk a little bit about the state of PE investing today. BARATTA: I got a lot of good friends from high school. What is energy transition? And so, that didnt happen until 2002. BARATTA: I just got done with Daisy Jones & The Six . Three things to know about Blackstone's $8bn long-hold strategy In London, in September, I had him come to talk about like what it means to be from where you should be deriving your happiness. Its attracted a lot of capital. Joseph Patrick Baratta Global Head of Private Equity People were declaring last summer, were already in a recession. Joseph Baratta is the Global Head of Private Equity and a member of Blackstone's Board of Directors. Hes probably 42 or 43. Those do seem to be valued relatively more attractively. And the guy who was going over truly to lead, David Blitzer, who was a good friend and colleague, and he sort of said, geez, why dont you come and do this with me? Yeah. There was a big consolidation and lots of divestitures of pubs that were owned by brewers in the time, and there were rules came down that brewers can own distributors. I mean, for us, in corporate private equity, no. How do I contact Joseph Baratta? Theres a scalability there that you dont get in the real world, which probably is why a lot of real-world assets eventually become attractively priced. Now, in that moment, Americans were sort of viewed positively and as neutral. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Lets start out with just a little background on your career. Ive been hearing recession chatter it seems like for six months, at least. Sean Russo is my researcher. Hes way more interesting than me. He is also a member of the Board of Trustees of Georgetown University, is a trustee of the Tate Foundation, serves on the board of Year Up, an organization focused on youth employment, and serves on the Board of Trustees of Trinity School in New York City. Whats an attractive place that people probably overlooked? BARATTA: Were not seeing evidence of it in the portfolio. BARATTA: In November of 2001, when I moved over , BARATTA: The industry wasnt called private equity; it was called venture capital and it wasnt . And the whole firm was maybe 200 total employees , BARATTA: not just investment people, total staff. 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. Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. Where are you looking around the world? RITHOLTZ: Really quite interesting. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. Were seeing in our businesses real stability across most sectors. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land My friend and former Morgan Stanley analyst, colleague, Chad Pike, ran our European real estate stuff. It was about $3 billion in total size. This week, we speak with Joseph Baratta, who since 2012, has served as Global Head of Private Equity at Blackstone the worlds largest alternative asset manager, with $975 billion in assets under management. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. And so, in terms of where our teams are spending time, its in and around sort of public markets. RITHOLTZ: So eventually you leave Morgan Stanley, you ended up at Tinicum Incorporated and McCown De Leeuw & Company. In the real estate, its Blackstone Real Estate Partners, and then there are variants on that theme. RITHOLTZ: You know, were both sitting here , RITHOLTZ: Who wear ties? And then it evolved. "For any professional investor, this is the most difficult period we've ever experienced . I think that also theres a bunch of businesses that are manufacturing things that must exist in the physical world, you know, to cool or heat the environment, food, the distribution of essential medical products, whole energy transition. First Eagle Investment Management, you mentioned Medline earlier, Ancestry.com is probably things people are familiar with. Blackstone Group Inc Chief Executive Stephen Schwarzman pocketed at least $610.5 million in 2020 from dividends and compensation, more than any other private equity executive and up 20% from last . Tell us a little bit about the work you do with them. joe baratta blackstone compensation 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? RITHOLTZ: in Europe. So a big part of what we do is trying to figure out where we dont want to invest, and whats going to be dislocated by ubiquitous broadband back in 2005, 06, 07, and now, AI with a rate of sophistication of that technology. The whole dressing custom, yeah. RITHOLTZ: Youre like late 20s at this time? Privacy Policy 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. So I wanted to get a job at a private equity firm. So I actually think, at the large end of the private equity market, were undercapitalized. Tell us about those experiences. Since 2012, Mr.Barattahas served as the firms Global Head of Private Equity and is located in New York. Im assuming you guys . Joseph Baratta - Biography - MarketScreener.com BARATTA: Yeah. 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. Paris Wald is my producer. I liked it, I thought I could build a successful career. 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. 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. 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? FourFourTwo gets inside the mind of a striker, interviewing the masters of the art and the men who have to mark them, including Jermain Defoe, Romelu Lukaku, Michael Owen, Martin Keown and Ledley King. And by the time theyre 30, they wanted to have, like, declared victory on their career. its $619 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. joe baratta blackstone compensation. You want to be able to ensure that youre bringing in best-in-class management thats really perfectly aligned with you. 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. And so. That doesnt happen. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. What are you looking at that might not have been on the table a decade ago? And in the end, we ended up just buying the U.S. textbook business, Houghton Mifflin. 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. Were coming off of a period of low inflation, low rates, and suddenly we have higher inflation and rising rates. And so, yeah, and weve had limited partners in our funds whove been with us since the early 90s now and keep re-upping because we deliver a good return for their beneficiaries. I was 29. And we were kind of oddities at that time, particularly in private equity which was still really in its infancy. At first, Blackstone executives discussed the idea of Mayer consulting with the firm or managing one of its existing portfolio companies. Theres some like risk management things that you always need to be mindful of. Mr. Baratta has served on the boards of a number of Blackstone portfolio companies and currently serves as a member or observer on the boards of directors of First Eagle Investment Management, Refinitiv, SESAC and Merlin Entertainments Group. Id been to, like, Paris and Venice or something. BARATTA: I mean, with all respect to the Joneses who run that team, you know . I mean, there have been leveraged loans and high yield bonds since the 1980s. We had a global partner off-site in private equity. I mean, his family dates back to like Louis Quatorze. So you move to the U.K. RITHOLTZ: Youre an hour to hop from all the key places . But for listeners, you know, you dont have the same capital costs. Its a solution and source of a problem, sort of. Blackstone 3d Amid global economic uncertainty and the ongoing recovery from COVID's systemic shock, we asked Global Head of Private Equity Joe Baratta for his perspective on the current. Its obvious in the public markets, things get frothy. So warm sunshine, no interest? Scottish & Newcastle was a big brewer up in Scotland at that time. Valuations go up and you saw it, of course, in the late 90s, in the tech sector. So I said, well, what kind of deals worked in the U.S. in the early 90s, in my experience? He is also a member of the Board of Trustees of Georgetown University; is a trustee of the Tate Foundation; serves on the board of Year Up, an organization focused on youth employment. When I started at Blackstone, I think weve just started investing our third private equity fund. When I came to the city, I was like, wow, this place is amazing. I mean, it was certainly not expected. RITHOLTZ: Happy to have you. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? Privacy Policy You can take margins up. The whole aesthetic of it is amazing. Mr. Baratta served as the Senior Managing Director and Head of European Private Equity at The Blackstone Group. Yeah. Individual Investors & Financial Advisors. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. BARATTA: No, no. But, in general, we became much more risk averse, risk-off in that, you know, mid 2021 period. I got an analyst job at Morgan Stanley in the M&A group, and thats kind of two-year training program and I did that and that was painful. Be sure to check out ourMasters in Business next week with Brian Hamburger, founder of MarketCounsel and Hamburger Law Firm. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. Over the last 16 years, insiders at Blackstone Inc have traded over $2,308,931,535 worth of Blackstone Inc stock and bought 906,721 units worth $30,000,792 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? I grew up in Sacramento, California. My sense is that AI and chatbots, and the recent, you know, multibillion dollar acquisitions that have been done by firms like Microsoft and Google, this doesnt seem to be that sort of ephemeral hype story. And I thought private equity was interesting because you could live with those investments for a longer period of time. BARATTA: Yeah. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. MiB: Joe Barratta, Blackstone's Global Head of Private Equity So its a whole broad spectrum of investing in the energy complex focused on the transition from hydrocarbons to renewable sources. When he began, PE was a little bit of a niche boutique sort of investment, and over the ensuing 25 years, it has grown to be really a major asset class with giant opportunities that have been expressed by then small, now very large companies, of which Blackstone is one of the largest. Blackstone (NYSE:BX) today announced that Joe Baratta, the firm's Global Head of Private Equity, will join its board of directors. Blackstone's Top Dealmaker Says Now Is The Most Difficult Period He's . Joe Baratta to Join Blackstone's Board of Directors So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. He is also a member of the firms Management Committee and serves on many of the firms investment committees. Baratta said his Blackstone unit had invested $1 billion to $1.5 billion in company buyouts the first half of 2015, a rate that is "a lot slower" than in previous years. I mean, I was in my mid-20s and, you know, looking to build a career in private equity. Joseph Baratta Net Worth, Biography, and Insider Trading BARATTA: Yeah. The first deal we looked at was in France. Portions of this site are directed only to persons in certain jurisdictions. BARATTA: I go to California all the time. Like, the last $30 billion deal we did, I mean, we bought Medline in 2021. BARATTA: technology. So, you know, you could go to France, maybe they didnt love, you know . 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? Mr.Barattagraduated magna cum laude from Georgetown University. You werent taken seriously. We all wanted to get there fast, but I think its entered a new level. And, you know, I grew up at the foothills of the Sierra Nevada Mountains, and I love to go there. BARATTA: You know, the whole notion of energy transition is a market that a decade ago, energy investors were investing in upstream oil and gas or in midstream companies. So we were working with our real estate guys in health care facilities, and visitor attractions, and theme parks. For press inquiries, contact [emailprotected]. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. 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.
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