BARATTA: crisis. RITHOLTZ: Who, by the way, we were supposed to have on the show, and a little thing called COVID came along and interrupted us, like, literally, that end of March, beginning of April, when his book came out . So when youre adjusting your investment posture, youre basically saying were going to take more risk or less risk . I will learn something, and Ill have something else to do on the other side of it. And as an asset class, theyve performed extremely well, with low incidence of loss, good returns. Tell us a little bit about the work you do with them. Joseph Baratta* Global Head of Private Equity Wayne Berman Global Head of Government Relations David Blitzer Global Head of Tactical Opportunities Martin Brand Head of North America Private Equity and Global Co-Head of Technology Investing Kenneth Caplan Global Co-Head of Real Estate Gilles Dellaert Global Head of Blackstone Insurance Solutions 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. Venture capital was the nomenclature for everything that was basically a private investment. It does this by using extraordinary people and flexible capital to help companies solve problems. 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. That doesnt happen. He is the Global Head of Private Equity at Blackstone. 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. I was supposed to go over you know, in November, I ended up doing that. RITHOLTZ: Well, so far, youre pretty interesting. RITHOLTZ: You want to control and be able to set how youre going to exit or how the firm is going to be run? April 15, 2023 10:00am by Joe Baratta is preparing for a new world. BARATTA: Yeah. 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. Business models are changing. You have your way. I dont miss a game. The first deal we looked at was in France. BARATTA: Yeah. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. To view recent press releases,click here. February 26, 2020 08:15 AM Eastern Standard Time. And so, Im proud of how we navigated that cycle, and I think were in a more normal world. There are 23 older and 2 younger executives at Blackstone Inc. You know, we spent a lot of time looking at traditional media businesses that linear TV, satellite broadcast, regional sports networks, all these things, that the direction of travel isnt really investable, the streaming services, direct to consumer. BARATTA: I had agreed to go before September 11th happened. How do I contact Joseph Baratta? Were seeing in our businesses real stability across most sectors. I think they were operating at the really top of the industry, really smart people, good track record. And today, were knocking on the door of 5,000. But its nothing like it is today. It was about $3 billion in total size. RITHOLTZ: So eventually you leave Morgan Stanley, you ended up at Tinicum Incorporated and McCown De Leeuw & Company. We combined it with another one. RITHOLTZ: which is very different than the Nordic countries. You have to have like an open mind and realize that things are changing. It sounds like a good background for someone who eventually ends up buying companies. RITHOLTZ: Thats quite interesting. 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. You began more or less in the M&A space at Morgan Stanley, is that right? Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. I liked it, I thought I could build a successful career. they do. Youve been there for 25 years. Weve had a big business there for a long time and we see really attractive assets. I mean, were not specifically investing in charging stations. RITHOLTZ: Really interesting. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. And so, were trying to find the businesses that are going to be enabled and benefited by AI, and avoid the things that are going to be dislocated. Portions of this site are directed only to persons in certain jurisdictions. So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. I love football. I do really think they nailed it. I havent gotten into the second season yet, and people said . RITHOLTZ: So lets talk about some of those different types of funds. If you enjoy this conversation, well, be sure and check out any of the previous 500 or so weve done over the past eight years. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life by Arthur C. Brooks. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. I mean, I think the biggest deal thats been done in the last 10 years is around $30 billion and that, you know, yeah, to get that done, we had to work with two of our competitors, which is fine. Im 30 when I moved, you know, yeah, because it was 2001 and, you know, it was just after September 11th. Read deeply reported stories from the largest newsroom in tech. We actually have assets where those are going in, or were investing in components that are part of . April 18, 2023 8:00am by 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. 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. 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. Obviously, rates are higher, but prices seem to have come down a bit. Speaking on. From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. 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. To me, this world is normal, not abnormal, with, you know, positive real interest rates. The most active insiders traders include James Breyer, Hamilton E James, and International Group Incaig . Valuations go up and you saw it, of course, in the late 90s, in the tech sector. And we did we became more cautious. Private credit deals tend to be sold for plus. 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? Well talk a little bit about your time in London later. Incentive alignment in India has been a harder thing. I know there are lots of different funds. BARATTA: Roger Staubach, Tony Dorsett, Tony Hill, those guys. We bought some more, and that was a pretty successful investment. BARATTA: So Steve said, we got to have real presence. And they had like bottles of Bordeaux on the conference room table. And when I . How are you looking at the investment environment today? Its a solution and source of a problem, sort of. So its been a great asset class. And we want to invest not just in digital virtual assets, but also in physical assets. BARATTA: Well, I think if you look at the evolution of the size of private equity transactions over the last decade, actually, they havent grown very much, notwithstanding the fact that the equity capital market cap is like three or four times bigger than it was in 2007. Hes way more interesting than me. Who cares about brown shoes? BARATTA: How could a kid from Sacramento be a Dallas Cowboys fan? "The current volatile and unpredictable environment reinforces . and Merlin Entertainments Group. I have to point out that your life history is a series of ever-worsening weather. And so, corporate carve-outs, public to private, you know, the last few deals weve done, a bit of large corporate carve-out from a large important American corporate, Emerson. 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. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. So Im watching the Cowboys like every Sunday. Were seeing maybe wage increases beginning to decline. Markets never sleep, and neither does Bloomberg News. RITHOLTZ: Really quite interesting. And it also happens to be a production of one of our portfolio companies, Hello Sunshine. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? Is that the sort of infrastructure were talking about in addition to all the obvious ones weve been mentioning? Were always on the 10:00 a.m. game and it was Americas team. At first, Blackstone executives discussed the idea of Mayer consulting with the firm or managing one of its existing portfolio companies. I think were 4,500 , BARATTA: or something like that. 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. We never have to sell, only when we want to because we control the companies. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. You have your way. He is also a member of the firm's Management Committee and serves on many of the firm's investment committees. 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. 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. And I think if you add it all up, we have about $40 billion of funds that were currently investing in their investment period. So thats been a really important book Ive read recently, and I think hes great. BARATTA: Yeah, thats part of it. Joseph Baratta is Global Head of Private Equity and a member of the firm's Management Committee. RITHOLTZ: And everybody started drinking and we looked at each other, can we have a drink that morning? Sebastian Escobar is my audio engineer. 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. Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to consumers. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. What was that like going over to the EU and England during that period? But thats not uncommon to see private equity firms taking companies private and transacting with public companies. BARATTA: I think starting with the fundamentals, you know, the economy is quite sound. 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? As for the right way, the correct way, and the only way, it does not exist. In the U.K., we own the Savoy Group of Hotels, which is the Connaught and Claridges and Savoy. Its obvious in the public markets, things get frothy. So even like undergone dusk could be successful. All Rights Reserved. BARATTA: Ive been really fortunate in my life where Ive had, you know, along the way, in the journey, Morgan Stanley, at McCown De Leeuw, at Tinicum which is the Ruttenberg family, where in each of those places, Ive had somebody who really helped me in my career and with whom Im very close even today. It has to be useful if you have skills. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. Theres some like risk management things that you always need to be mindful of. 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. RITHOLTZ: Happy to have you. So its a whole broad spectrum of investing in the energy complex focused on the transition from hydrocarbons to renewable sources. It has to be growing. Publicly traded Blackstone . When I started at Blackstone, I think weve just started investing our third private equity fund. BARATTA: Wind, solar, electrifying the economy, getting off of oil and gas, and its all kinds of companies engaged. RITHOLTZ: At what point does size become the enemy? RITHOLTZ: Theres still textbooks in schools. RITHOLTZ: Hell reach out to Steve, Steve will put you in touch. Since joining Blackstone in 1998, Mr. Baratta has been involved in the execution of Blackstone's investments in Universal Orlando, Nycomed Pharmaceuticals, Houghton Mifflin, Spirit Group and was responsible for Blackstone's investments in First Eagle Investment Management . 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. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. I recognized that it was still pretty early in the development and there should be a lot of growth in these firms. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. I had no language skills. By selecting the relevant option, you certify that it accurately reflects your residency. 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. Is this just part of the life cycle of business, or do you go through these periodic spasms where everything changes? RITHOLTZ: So before we let you go, were going to jump to our favorite questions that we ask all of our guests, starting with you mentioned streaming, tell us what youve been watching, what keeps the family entertained? RITHOLTZ: And have done a pretty nice job, right? I mean, you know, this is probably 2002. So, yes, private equity valuations are influenced very significantly by whats going on in the public markets. how to check soundcloud notifications on mobile; shadows of london dress up time princess walkthrough; bill de blasio wife missing money; stonco lighting catalog. These are people who were, you know, in their late 20s, early 30s, oldest maybe mid-30s, and they kind of grew up with the firm, and they were able to be the translator, so to speak, both physically and culturally, in some of these other countries. BARATTA: Yeah. I was 29. 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. Blackstone is one of the worlds leading investment firms. But we ended up being you know, that was an example of, like, I just think we were discounted, but it was really early in the development of private equity. As an example, the firm invested in Reese Witherspoons production company Hello Sunshine versus the legacy cable and satellite firms. RITHOLTZ: Renewable meaning wind, solar, nuclear, whatever? Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. Its where we play. 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. You had Lehman almost go bust, I think, around that time for maybe the first or second time. You know, I sort of looked at, well, the industry in Europe is a good decade or two behind the U.S. Mr.Barattajoined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. We dont spend too much time thinking about like when that might end and the ramifications of it. What was it like on the private side at the end in the 90s? No, no, thats I mean, the firm is called Blackstone, period. In the real estate, its Blackstone Real Estate Partners, and then there are variants on that theme. So I wanted to get a job at a private equity firm. With no further ado, my discussion of private equity with Blackstones Joe Baratta. First Eagle Investment Management, you mentioned Medline earlier, Ancestry.com is probably things people are familiar with. You can see the complete history of Mr. Baratta stock trades at the bottom of the page. So lets talk about your mentors who helped shape your career. BARATTA: technology. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. 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 . Im not saying were clairvoyant and we handled everything perfectly. BARATTA: No, no. BARATTA: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. He is very familiar with everything from M&A to credit, to real estate, on and on, and has had experiences both in the U.S. and overseas, really a global perspective on what took place in private equity in the past and what the future looks like. I mean, at least, it was back then. Blackstone Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. You werent taken seriously. BARATTA: Yeah. 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. BARATTA: Yeah. 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. But, yes, thats the kind of thing were talking about. 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. RITHOLTZ: Really interesting. So, clearly, that was a great time to pull back in mid-2021. And I think fundamentals mattered more in private equity than they did in public market investing. BARATTA: Yeah. RITHOLTZ: I dont want to suggest that thats what we hear. I would be remiss if I did not thank the fine team who help put this conversation together each week. What is . It takes a long time to figure out like how you get good at something and the particular way you want to do it. RITHOLTZ: But youre still dealing with a lot of European at that time. Blackstone has raised the largest-ever long-hold private equity vehicle as interest in the strategy from both investors and managers increases.. View stories on our mobile app and tune into our weekly podcast. Mr. Meaning, your team, your group would be a Fortune Top 20 Company. 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. BARATTA: And I had very modest expectations like, geez, if I can last two or three years, at least I will have done it. You saw it in the financial services sector. People were declaring last summer, were already in a recession. We had some real estate guys there. Thats a pretty good run. BARATTA: Steve Schwarzman, our co-founder and CEO and chairman and, you know, amazing mentor and great businessman. Switchboard:+1 (212) 583-5000. Joe Baratta, Blackstone Group LP's top private equity dealmaker, can't be too cautious right now. It sounds like you can scale up by partnering with lots of other PE firms. Our model is not to run the companies. 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 &. And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. How do you use all of this data thats generated by all of your portfolio companies to navigate the world at large? I mean, this is the ultimate French establishment. 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. Just like life gets in the way and I had, you know, a cool career going and I stuck with it. And then when the Niners got good, I became a contrarian and said, no, Im going to root for the Cowboys . 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 . BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? Sean Russo is my researcher. In addition, he makes $0 as Global Head of Private Equity and Director of the Company at Blackstone Inc. Joseph has made over 11 trades of the Blackstone Inc stock since 2020, according to the Form 4 filled with the SEC. RITHOLTZ: Similar to U.S. antitrust rules . Deceptive. RITHOLTZ: Im halfway through it, really loving it. 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. Probably somewhere around 2004 or 05, we started doing things by ourselves. RITHOLTZ: So I really liked the first season. I mean, inflation is higher than normal, but thats going to come down. That had to be a giant challenge, especially given what was taking place. BARATTA: Like, it probably isnt going to happen forever. RITHOLTZ: firms or private equity firms? Im assuming that all these different names all come from different work products, different strategies, different funds, or is just everybody getting this wrong? How do you keep all that straight? Were coming off of a period of low inflation, low rates, and suddenly we have higher inflation and rising rates. So I think thats kind of the realm were in. And I was doing my pitch, so here I am, 30 years old. You mentioned private credit. I mean, there is some degree of like heightened caution concern, because when you do take rates up and really tighten financial conditions, there are consequences in the economy at some point. RITHOLTZ: How did you first get involved with them? Clever. 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. India is very attractive. And so, we began to hire local people who were young in their careers. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of. And we were like, look, wed be great partners as youre looking at assets. Overnight on Wall Street is morning in Europe. You know, bigger technology companies, software businesses that have proven theyve got really durable sticky revenue models. You know, energy prices are higher. You can take margins up. So lets talk a little bit about the state of PE investing today. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, YouTube, Stitcher, Google, Bloomberg, and Omny. I know the Savoy is in the U.K. and in Europe. BARATTA: Not only post Brexit but now, you know, in this kind of world of inflation and dislocation and conflict near the continent, like all of that is conspiring, I think, to make markets look relatively attractive, in particular in the U.K., where we own a lot of assets and well continue to buy businesses. So warm sunshine, no interest? They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. Id never lived abroad. Yeah. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. 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. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio.
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