From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. BARATTA: So Steve said, we got to have real presence. Mr.Barattagraduated magna cum laude from Georgetown University. Even when you read that announcement from that was 2012 . We bought some more, and that was a pretty successful investment. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. The firm had had , RITHOLTZ: Do you need language skills in England, or is it . And they introduced me to and I wont name names, hes a wonderful guy. Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. 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. Elon Musk May Yet Meet Twitter Executives in Court. You end up in London. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. Maybe theyre not run that efficiently. 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. And I was doing my pitch, so here I am, 30 years old. It seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. That had to be a giant challenge, especially given what was taking place. We hired an Italian for the firm, Andrea Valeri. Get subscriber-only insights and news delivered by Barry daily. We have associated funds in Asia and an energy transition, and a long-dated vehicle that allows us to hold things for 15-plus years. Joseph Baratta is Global Head of Private Equity and a member of the firm's Management Committee. I havent gotten into the second season yet, and people said . 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. Both in terms of the aggregate revenue of our company, size of our portfolio, were probably now something like 150 total investments, many hundreds of billions of revenue, hundreds of thousands of employees if you add up all of the companies in which were invested. I really wanted to learn how to invest money, not just be an advisor, and I thought private equity was cool because you werent at the whim of the market. Im assuming these are both related M&A-type . Mr.Barattajoined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. RITHOLTZ: Happy to have you. You have to have like an open mind and realize that things are changing. It took a year for all those local currencies, literally paper and coin currencies, to come out of circulation and have euro bills. That doesnt happen. BARATTA: I mean, with all respect to the Joneses who run that team, you know . And so, Im proud of how we navigated that cycle, and I think were in a more normal world. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? So if your alternative, as a company, is to go public at a given price, youre probably not going to sell it to a private equity firm at a much lower price. Deadly. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. RITHOLTZ: Im not being sarcastic. RITHOLTZ: How important was it finding a local partner to, you know, hook up with them and be able to participate in deals with? We do think, at some level, it does affect the cost structures. BARATTA: Wind, solar, electrifying the economy, getting off of oil and gas, and its all kinds of companies engaged. I mean, I knew nothing about finance. RITHOLTZ: Really quite interesting. BARATTA: Were not seeing evidence of it in the portfolio. 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So, overall, the picture we see is of a reasonable economy, with some risks to the future, but I dont whatever recession we may have, I dont think is going to be really significant. I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. 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. how to check soundcloud notifications on mobile; shadows of london dress up time princess walkthrough; bill de blasio wife missing money; 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. BARATTA: No. I have my way. BARATTA: Yeah, right after I graduated college, I went to Georgetown in 1993. And so. But thats not uncommon to see private equity firms taking companies private and transacting with public companies. So the rate of increases is declining. 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. BARATTA: Patience. RITHOLTZ: Really intriguing. And then, like I said, theyre very accessible. We were much more networked. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. RITHOLTZ: I was waiting for you to say, and it was 10:00 a.m. and they broke open the bottles of Bordeaux. So we operate from a board level and really focus on key strategic and risk management variables. How are you looking at a geopolitical event like that affecting, you know, whats taking place on the continent? BARATTA: Yeah. My dad was a bodybuilder and owned three gyms in Sacramento. BARATTA: No, its hard, and what we began to do is hire local people. 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. I mean, for us, in corporate private equity, no. We have some assets. Otherwise, we will assume you're OK to continue. 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? 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. I mean, you have a bunch of companies that have trillion dollar-plus market caps. Follow me on Twitter @ritholtz. 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. RITHOLTZ: And when you say Steve, for those people who may not be familiar with . And so, yeah, there was a lot of volatility. 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. 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 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? You werent taken seriously. The Tate is such a significant cultural institution in the U.K. Its funded largely by the state. Scottish & Newcastle was a big brewer up in Scotland at that time. BARATTA: Yeah. Before joining Blackstone, Mr.Barattawas with Tinicum Incorporated and McCown De Leeuw & Company. Clever. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. And also, there are new business models, new media models. But for listeners, you know, you dont have the same capital costs. Now, the firm had assets. But in the moment, it was less wonderful. 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? Overnight on Wall Street is morning in Europe. This net worth estimate does not reflect any other assets that Mr. Baratta may own. 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? 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? RITHOLTZ: Lets talk a little bit about your career at Blackstone. Those two men really were extremely important in my professional development, my personal development, great, amazing mentors. Barry Ritholtz. 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. So Im watching the Cowboys like every Sunday. Signup for our newsletter to get notified about sales and new products. He is also a member of the firm's Management Committee and serves on many of the firm's investment committees. Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. As of 1 April 2023 he still owns at least 1,145,448 units of Blackstone Inc stock. RITHOLTZ: than the first one. 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. JosephBarattais the Global Head of Private Equity and a member of Blackstones Board of Directors. This seems to really be a potential sea change. RITHOLTZ: How did you first get involved with them? Our model is not to run the companies. And, you know, cost structures are a little less efficient there may be than in the U.S. now. 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. Switchboard: +1 (212) 583-5000. BARATTA: into peoples pocketbooks, which massively accelerated the economy and rates stayed low. Joe Baratta, The Blackstone Group: Profile and Biography - Bloomberg Markets Bloomberg TV+ Bloomberg Surveillance: Early Edition Bloomberg Surveillance: Early Edition with Francine Lacqua. All of our earlier podcasts on your favorite pod hosts can be found here. What is . BARATTA: Its a great building that had a beautiful collection. 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. We back them with capital and support, and we let them run the businesses. Im assuming that all these different names all come from different work products, different strategies, different funds, or is just everybody getting this wrong? RITHOLTZ: Post Brexit, is that the driver? 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. Its really quite fascinating. And I know the size, it was 32, 33, 34, $35 billion. BARATTA: and nice calling card. Mr. Baratta served as the Senior Managing Director and Head of European Private Equity at The Blackstone Group. You have your way. 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. And the market hasnt loved owning manufacturing industrial-type businesses. I liked it, I thought I could build a successful career. February 26, 2020 08:15 AM Eastern Standard Time. Now, the funniest story I can remember is, in these early days, when we were out trying to introduce ourselves to the local private equity firms, I went to Paris and went to Lazard Freres, which was you know, that is the bastion of, like, French establishment business. You saw it in the financial services sector. And then by the time youre in your 40s, you can actually be good at this job. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. 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. But we can, things that are mature, things where weve realized value, sometimes were taking companies public and we can sell stock. You had the Russia . BARATTA: Yeah. BARATTA: Yeah. 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: You want to control and be able to set how youre going to exit or how the firm is going to be run? Blackstone already manages $439 billion across alternative assets such as private equity and real estate, and is looking for ways to grow further. RITHOLTZ: Lets talk about books. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. RITHOLTZ: You start out in California. The other one I love is White Lotus, which is fantastic, not a Black Swan-related thing, also awesome. To view recent press releases, click here. RITHOLTZ: which is very different than the Nordic countries. The acting is amazing. I have to point out that your life history is a series of ever-worsening weather. RITHOLTZ: By the way, there are a lot of different names for Blackstone. RITHOLTZ: But youre not dealing with startups; youre dealing with . 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. RITHOLTZ: firms or private equity firms? Sebastian Escobar is my audio engineer. 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. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. How Greed and Easy Money Corrupted Wall Street and Shook the World Economy But youre not wrong, I mean, theres different names within the individual businesses, but we all work at Blackstone. RITHOLTZ: Really interesting. And I think people just need to relax, take a deep breath. 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. What attracted you to them in 1998 when they were still kind of a modest, small firm? So thats been a really important book Ive read recently, and I think hes great. The goal: to help bring brand . 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? All the places youve mentioned, like Germany is very different than the Switzerland . BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. The IOC and FIFA are scrambling to change their ways before it's too late. Our final question, what do you know about the world of investing today you wish you knew back in the 90s when you were first getting started? BARATTA: We leaned into exiting what we could in that period. JOSEPH BARATTA, GLOBAL HEAD OF PRIVATE EQUITY, BLACKSTONE: Thank you. joe baratta blackstone compensation. You see it in real-time across real estate, across labor . RITHOLTZ: And have done a pretty nice job, right? RITHOLTZ: I never would have guessed that. To receive email alerts from Blackstone, sign up below. Your base of operations when youre in the U.K. is London, but youre back and forth to multiple countries. RITHOLTZ: So I really liked the first season. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . Feel free to sign up for my daily reading list at ritholtz.com. And David and I moved over to do the private equity stuff. 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. BARATTA: I think it was 2005, when we started to look at in China and in India, in particular, and also Japan. We had a global partner off-site in private equity. 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. 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 then it evolved. I had no language skills. In the early days, do whats asked of them, do it as well as they can, and move on to the next step. You got to get it elsewhere. They introduced me to the head of a significant private equity firm in Europe. Joe Baratta, welcome to Bloomberg. But, yes, thats the kind of thing were talking about.
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