Weve had a big business there for a long time and we see really attractive assets. Blackstone was right on their heels back then. I love football. 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 . Im assuming these are both related M&A-type . I mean, it was certainly not expected. So I think the large end of the market we think is the most attractive. Since Sundar Pichai became CEO of Googles parent company, Alphabet, in 2019, he has been honest with colleagues about the difficulties of overseeing a sprawling conglomerate thats under constant strain from internal power struggles, regulators and rebellious employees. You see it in real-time across real estate, across labor . We use cookies for a number of reasons, such as keeping The Information reliable and secure, personalizing content and ads, providing social media features and to analyze how our sites are used. Get subscriber-only insights and news delivered by Barry daily. RITHOLTZ: Really quite interesting. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. 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. 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. So we were materially bigger than we were 25 years ago. Talk about linear TV , BARATTA: there were two games, one at 10:00, one at 1:00, and the Cowboys playing in the NFC East. BARATTA: Yeah. Calhoun will lead Blackstone's private equity portfolio management group, which basically means that he will aid CEOs with various operational challenges. So the second deal we did was we worked with another firm, a local U.K. firm called CVC and also TPG to buy Scottish & Newcastles pub divestiture. You end up in London. And we want to invest not just in digital virtual assets, but also in physical assets. I will learn something, and Ill have something else to do on the other side of it. Individual Investors & Financial Advisors. Three things to know about Blackstone's $8bn long-hold strategy Our model is not to run the companies. You have your way. 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 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. JOSEPH BARATTA, GLOBAL HEAD OF PRIVATE EQUITY, BLACKSTONE: Thank you. What attracted you to them in 1998 when they were still kind of a modest, small firm? 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. 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. We had some real estate guys there. BARATTA: I think private market valuations are driven to a large degree by whats going on in the public markets. Mr.Barattaalso worked at Morgan Stanley in its mergers and acquisitions department. So, as an investor, you have to be nimble. Because people start so early, you have to do so much to get in college. 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. 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. BARATTA: And it is this perfect example of what we thought Hello Sunshine could do, the convening power to assemble that amazing ensemble cast, amazing music creators, and create something that is really important to, in this case, Amazon Prime, to be an important counterparty of the streamer. Hours Left50% Off The Information Pro Ends TonightGet Pro. Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. The largest trade he's ever made was selling 434,815 units of Blackstone Inc stock on 4 August 2020 worth over $23,045,195. BARATTA: Yeah. Barry Ritholtz. Those two men really were extremely important in my professional development, my personal development, great, amazing mentors. Hes probably 42 or 43. You have your way. The IOC and FIFA are scrambling to change their ways before it's too late. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of. Valuations go up and you saw it, of course, in the late 90s, in the tech sector. February 26, 2020 08:15 AM Eastern Standard Time. April 18, 2023 8:00am by So Im watching the Cowboys like every Sunday. It changed the way we communicated with each other. To view recent press releases,click here. Its one firm made unified. And the way buyouts are being financed is evolving away from syndicated big syndicated capital structures committed to by banks to now the people who are actually going to hold the risk, firms like ours and Apollo and Ares and others, who are actually lending money directly to the people who are borrowing, instead of going through the banking intermediaries. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. We all wanted to get there fast, but I think its entered a new level. You have to have like an open mind and realize that things are changing. BARATTA: Yeah. We combined it with another one. Anything with the patents or copyright and algorithm . No, no, thats I mean, the firm is called Blackstone, period. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. And its cool and, you know, Bitcoin or whatever, theyre just probably a real store of value. RITHOLTZ: Lets talk a little bit about your career at Blackstone. Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. The Tate is such a significant cultural institution in the U.K. Its funded largely by the state. I dont miss a game. BARATTA: I was watching the 10:00 a.m. game. Elon Musk May Yet Meet Twitter Executives in Court. RITHOLTZ: You dont have the same labor costs. RITHOLTZ: So lets talk a little bit about some of those places. BARATTA: were probably three times the size as we were in 2012. The firm had had , RITHOLTZ: Do you need language skills in England, or is it . Blackstone (NYSE:BX) today announced that Joe Baratta, the firm's Global Head of Private Equity, will join its board of directors. BARATTA: Steve Schwarzman, our co-founder and CEO and chairman and, you know, amazing mentor and great businessman. But were seeing solid demand. In the long run. 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 . We have some assets. 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. 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? But, in financing acquisitions and capital needs of these middle market companies, the private credit market has played an important role in that. And so, we began to hire local people who were young in their careers. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. And so. That is part of the energy transition. Receive a summary of the day's top tech newsdistilled into one email. Switchboard:+1 (212) 583-5000. Mr. Baratta joined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. You want to be able to ensure that youre bringing in best-in-class management thats really perfectly aligned with you. But wed prefer to buy things on our own, just Blackstone with our limited partners. BARATTA: And so, as we were watching the Feds reaction to the financial crisis, pushing rates down and keeping them down, were like, geez, this probably is not going to last forever, and that doesnt seem to be the natural state of affairs. How often does a new business model come along thats really notably different from what preceded it? That doesnt happen. BARATTA: I think starting with the fundamentals, you know, the economy is quite sound. BARATTA: Yeah, Im 29 when Im asked. To view recent press releases, click here. RITHOLTZ: At what point does size become the enemy? You had a longer period of time to figure out if you were right or not. You had the Russia . And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. RITHOLTZ: tell us about Blackstones boss. But thats not uncommon to see private equity firms taking companies private and transacting with public companies. 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. Blackstone's Top Dealmaker Says Now Is The Most Difficult Period He's It took a year for all those local currencies, literally paper and coin currencies, to come out of circulation and have euro bills. Elon Musk May Yet Meet Twitter Executives in Court - New York Times The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. Those do seem to be valued relatively more attractively. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? BARATTA: Yeah. But, yes, thats the kind of thing were talking about. 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. Business models are changing. I think they were operating at the really top of the industry, really smart people, good track record. The most active insiders traders include James Breyer, Hamilton E James, and International Group Incaig . The first deal we looked at was in France. 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. Blackstone already manages $439 billion across alternative assets such as private equity and real estate, and is looking for ways to grow further. The modern day striker has to be many things to make it to the top. As companies got larger and larger, it seemed like banks went upscale with them and left sort of a gaping void in the middle, where, you know, mid-market companies didnt have a merchant bank that could facilitate loans, credit, anything . Joe Baratta, The Blackstone Group: Profile and Biography What are you looking at that might not have been on the table a decade ago? I have my way. BARATTA: Yes. 40+ "Joe Baratta" profiles | LinkedIn Its where we play. 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 Like, look at Disney, you know, Disney, in large part, was hugely enabled by streaming services because of the amazing content it owned. You go to D.C. You go to New York. I know the Savoy is in the U.K. and in Europe. RITHOLTZ: Hell reach out to Steve, Steve will put you in touch. So it was a beneficiary of the technology change. By Andrew Ross Sorkin . BARATTA: I go to California all the time. Blackstone invests money on behalf of institutions and individuals, including more than 30 million U.S. pensioners. Joseph Baratta Net Worth (2023) | wallmine Two years ago, Joe Baratta couldn't figure out what Blackstone, the private equity giant he worked for, should do for its next move in media and entertainment. I think were 4,500 , BARATTA: or something like that. Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. 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. RITHOLTZ: Thats right. 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. And I was like, geez, okay, well . It has to be useful if you have skills. We had our second real estate fund, which was I think about $1.2 billion or $1.3 billion. 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. 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. And the guy looks at me like I had, you know, two horns coming out of my head, whos his young American? Were seeing maybe wage increases beginning to decline. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. I had never been to New York City till I was, I think, 20 years old, and I had some roommates who grew up in New York City whove gone to Dalton High School here, so completely different world. How do you use all of this data thats generated by all of your portfolio companies to navigate the world at large? 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. He is an entrepreneur, attorney, consultant, and advocate for independent investment advisers, which is a $97 trillion industry. We never have to sell, only when we want to because we control the companies. 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. 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. So lets talk about your mentors who helped shape your career. It was about $3 billion in total size. 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. Were coming off of a period of low inflation, low rates, and suddenly we have higher inflation and rising rates. Its really quite fascinating. Mr. Baratta has been with Blackstone for 22 years, including ov RITHOLTZ: Is AI investable? RITHOLTZ: Youre looking at the cost of capital and how much margin or leverage you want to assume. BARATTA: But these sort of Americans were tolerated, you know? Were seeing full employment. Exclusive: Blackstone grooms six executives for Schwarzman's job For press inquiries, contact [emailprotected]. In this podcast, Joe and Peter discuss Blackstone's history building Merlin into a global leader, and our long-term investment plans to help the company continue to expand. 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. BARATTA: You had stuff going on in Latin America. RITHOLTZ: How important was it finding a local partner to, you know, hook up with them and be able to participate in deals with? RITHOLTZ: And when you say Steve, for those people who may not be familiar with . When did Blackstone start to look at Asia? Monitor your investments 24 hours a day, around the clock from around the globe. BARATTA: I mean, theres no question that financing costs are higher, both debt and equity, which is a healthy thing because I think the global cost of capital was too low, induced by super low rates and capital allocation to riskier assets, institutional investors chasing return. Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. 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. Terms and Conditions. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. I liked it, I thought I could build a successful career. And, you know, cost structures are a little less efficient there may be than in the U.S. now. 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. I know there are lots of different funds. Atika Valbrun is our project manager. 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. BARATTA: Yeah. Joseph Patrick Baratta Global Head of Private Equity
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