But I cant explain it. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. What are some of your favorites? BARATTA: Yes. 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. So youre raising the bar. How do you keep all that straight? So its been really significant growth. 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. 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. And then by the time youre in your 40s, you can actually be good at this job. It is an institutionalized asset class. 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. BARATTA: In November of 2001, when I moved over , BARATTA: The industry wasnt called private equity; it was called venture capital and it wasnt . RITHOLTZ: Thats really interesting. 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: you know, company-based. Yeah. BARATTA: Yeah. RITHOLTZ: So eventually you leave Morgan Stanley, you ended up at Tinicum Incorporated and McCown De Leeuw & Company. We were looking at taking remember the Vivendi at that time? I mean, inflation is higher than normal, but thats going to come down. BARATTA: No, its hard, and what we began to do is hire local people. BARATTA: I think that it changes so much fundamentally, that you cant hold on to like, you know, absolutes. Were seeing full employment. 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. February 26, 2020 08:15 AM Eastern Standard Time. In the real estate, its Blackstone Real Estate Partners, and then there are variants on that theme. Theres nothing intimidating about those institutions, and then I knew some people who are involved. BARATTA: and nice calling card. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? Switchboard:+1 (212) 583-5000. You see it in real-time across real estate, across labor . RITHOLTZ: I can imagine. I think were 4,500 , BARATTA: or something like that. And he was, you know, in that moment, completely dismissive. 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. But were not seeing it. But it doesnt just happen like that. And so, yeah, it was helpful. So lets talk about your mentors who helped shape your career. Privacy Policy BARATTA: Not a bit, not a bit. Feel free to sign up for my daily reading list at ritholtz.com. MarketCounsel and Hamburger Law Firm are the leading business & regulatory compliance consultancy to the countrys preeminent entrepreneurial independent investment advisers in the investment and securities industry. And I know the size, it was 32, 33, 34, $35 billion. And so we did, but we were kind of trying to do deals by airplane from New York, and thats not functional. What is it like being on these boards? 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. You werent taken seriously. Now, the firm had assets. 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: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. Our model is not to run the companies. And the market hasnt loved owning manufacturing industrial-type businesses. And I met the director one day and, you know, they asked me to get involved. We bought their Climate Technologies business called Copeland. Why am I talking to him? 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. 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. 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. RITHOLTZ: in prices. RITHOLTZ: Similar to U.S. antitrust rules . RITHOLTZ: At what point does size become the enemy? We had a global partner off-site in private equity. And in fact, I invited him to come talk to our partner group. RITHOLTZ: You dont have the same labor costs. BARATTA: I think it was 2005, when we started to look at in China and in India, in particular, and also Japan. Blackstone Joe Baratta Finance Manager Boca Raton, FL INFINITI of Coconut Creek, +10 more Joe Baratta I/O Psychologist, Trustee, Vice Chair Lake Tahaoe School Board, CEO TBIG Investments. So the way I do, you know, this job, in addition to managing a bunch of our people and engaging in other stuff at the firm is I want to keep a hand in the investing, and engaging with our company. A special committee of messaging app IRLs board of directors suspended CEO Abraham Shafi on Friday after receiving a report from outside counsel that outlined a pattern of misconduct by Shafi, an IRL spokesperson told The Information. Brown shoes that are for like, you know . Lets start out with just a little background on your career. Private credit deals tend to be sold for plus. 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. I do really think they nailed it. 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. When I started at Blackstone, I think weve just started investing our third private equity fund. How are you looking at a geopolitical event like that affecting, you know, whats taking place on the continent? BARATTA: into peoples pocketbooks, which massively accelerated the economy and rates stayed low. And now, the rate of change is much more quick with the advent of technology, ubiquitous broadband, which really enabled the internet, changed the way we . Disputes over compensation and firings, and potentially over layoffs, could push both sides into fresh legal battles. And when I . Its obvious in the public markets, things get frothy. BARATTA: Well, you have to get him back. BARATTA: I just got done with Daisy Jones & The Six . 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. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. BARATTA: I think starting with the fundamentals, you know, the economy is quite sound. Do you have to be selfish to be a striker? And I was like, geez, okay, well . 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? 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. 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 . RITHOLTZ: And so you guys are expanding in the 2000s in Europe. Otherwise, we will assume you're OK to continue. Joe Baratta, welcome to Bloomberg. Thank you, Joe, for being so generous with your time. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. And so, in the early 90s, analysts had these big investment banks, Morgan Stanley, Goldman Sachs, had sort of two or three options, you can stay there and become an investment banker and do that for a career, you could go into the emerging fields of investing in private equity or in hedge funds, or you go to business school, or maybe go to business school later. 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.. Are goalscorers born or made? In addition, he makes $0 as Global Head of Private Equity and Director of the Company at Blackstone Inc. The goal: to help bring brand . Youve been there for 25 years. BARATTA: Yeah, Im 29 when Im asked. 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. That sounds quite fascinating. So when I looked at the world of higher rates, does it have a big impact on how you structure deals, or is it just a factor thats going to move up and down and everybody just changes their spreadsheets and the numbers all just move higher? BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, YouTube, Stitcher, Google, Bloomberg, and Omny. BARATTA: I got a lot of good friends from high school. BARATTA: were probably three times the size as we were in 2012. 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 &. You know, you want to be able to control the exit. Where is the most fertile ground for growth size-wise? And, yes, if Jerry needs some help, you know, he knows who to call. 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 RITHOLTZ: Youre looking at the cost of capital and how much margin or leverage you want to assume. So we did a lot of these sorts of consolidation place. And for a while, it looked like the lower quality the stock was, the better it did. and Merlin Entertainments Group. All the places youve mentioned, like Germany is very different than the Switzerland . Late last year, a trio of engineers who had just helped Apple modernize its search technology began working on the type of technology underlying ChatGPT, the chatbot from OpenAI that has captivated the public since it launched last November. Get subscriber-only insights and news delivered by Barry daily. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. And they introduced me to and I wont name names, hes a wonderful guy. On average, Joseph trades about 53,227 units every 51 days since 2020. When did Blackstone start to look at Asia? And so, we began to hire local people who were young in their careers. Financial Advisors, visit our dedicated website to learn how you can partner with Blackstone. What are you looking at that might not have been on the table a decade ago? Where are you looking around the world? RITHOLTZ: than the first one. BARATTA: Yeah. 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. 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: No. The transcript from this weeks, MiB: Joe Barratta, Blackstones Global Head of Private Equity, is below. RITHOLTZ: But youre not dealing with startups; youre dealing with . Atika Valbrun is our project manager. RITHOLTZ: So really a period of transition and . 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. Weve had a big business there for a long time and we see really attractive assets. So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. You could only wear black shoes. So lets talk a little bit about the state of PE investing today. So we have to work with our investors, our limited partners, other private equity firms to assemble a deal that gets much more than $10 billion of enterprise value. RITHOLTZ: which is very different than the Nordic countries. 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What is energy transition? BARATTA: Exactly. And now, I think, you know, AI could be it probably is one of those other major sea changes, where business models turning on human beings doing rote tasks, you know, probably is not the future, and a lot of businesses are going to be dislocated. 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. "For any professional investor, this is the most difficult period we've ever experienced .
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