So when youre adjusting your investment posture, youre basically saying were going to take more risk or less risk . In the real estate, its Blackstone Real Estate Partners, and then there are variants on that theme. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. RITHOLTZ: So let me interrupt you right there. There werent that many people. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. 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: So there were still French francs and, you know, lira, and German Deutsche Marks. RITHOLTZ: Really quite interesting. What was that like going over to the EU and England during that period? 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. 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 . I mean, inflation is higher than normal, but thats going to come down. I dont miss a game. 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. 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. Joseph Baratta net worth, bio and Blackstone Inc insider trades. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. You can see the complete history of Mr. Baratta stock trades at the bottom of the page. We find great management teams. And enjoy the journey. 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Joseph Baratta Net Worth (2023) | wallmine You mentioned private credit. On average, Blackstone Inc executives and independent directors trade stock every 59 days with the average trade being worth of $43,777,685. Feel free to sign up for my daily reading list at ritholtz.com. BARATTA: Yeah. And so, we bought the pub business. Mr. Baratta served as the Senior Managing Director and Head of European Private Equity at The Blackstone Group. Most recently he sold 85,000 units of BX stock worth $7,337,200 on 1 April 2023. Joseph Baratta Net Worth, Biography, and Insider Trading 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. So its been a great asset class. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. And there are thousands of companies in the U.S. . BARATTA: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. And in the end, we ended up just buying the U.S. textbook business, Houghton Mifflin. 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. And then it evolved. Clearly, there was a ton of hype in crypto. Tell us about those experiences. I do really think they nailed it. RITHOLTZ: Theres still textbooks in schools. 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. "The current volatile and unpredictable environment reinforces . Like I said, theres a few fundamental enabling technologies that happen, ubiquitous broadband, internet to your house to your mobile device, which really enabled a change in retail and media models and communication models, and now this. And I know the size, it was 32, 33, 34, $35 billion. He also sits on the firms Management Committee. RITHOLTZ: Im not being sarcastic. Joe reflects on what the end of easy monetary policy and near-term growth headwinds mean for investors. BARATTA: I agree with you, I mean, 100 percent. You have to have like an open mind and realize that things are changing. Your base of operations when youre in the U.K. is London, but youre back and forth to multiple countries. Its where we play. Fast. We were much more networked. And what sort of input do you give to managements there? And so, in terms of where our teams are spending time, its in and around sort of public markets. So given the change in size of private equity over the past 25 years, is there a sweet spot? But youre looking at valuations and what sort of multiples you want to pay. I think were 4,500 , BARATTA: or something like that. Whats appealing? As for the right way, the correct way, and the only way, it does not exist. BARATTA: crisis. Terms and Conditions. Calhoun will lead Blackstone's private equity portfolio management group, which basically means that he will aid CEOs with various operational challenges. RITHOLTZ: I dont want to suggest that thats what we hear. And so we sort of followed our real estate colleagues, where they went and establish a toehold, became successful. Blackstone on LinkedIn: Global Head of Private Equity, Joe Baratta But if we can find a great business at a reasonable price in Europe, were going to buy it. 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: How important was it finding a local partner to, you know, hook up with them and be able to participate in deals with? 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. And like I said, those companies arent too big to make good returns with. 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 . Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. 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. I have my way. What was it like on the private side at the end in the 90s? And the guy looks at me like I had, you know, two horns coming out of my head, whos his young American? BARATTA: Well, its not necessarily a problem to do that with some of our friendly competitors. Its not just like the next deal, the next promotion, the name in the paper or whatever. Are goalscorers born or made? You werent taken seriously. BARATTA: Its a great building that had a beautiful collection. And the cost of financing and the quantum isnt the biggest driver of our returns. What is . We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. 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. What are the challenges of investing in a place like India? In the last 16 years, insiders at Blackstone Inc have sold an estimated . I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. RITHOLTZ: So lets talk about geographies, and lets talk about sectors. But, like, really, our preference is to do it just by ourselves. 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? Incentive alignment in India has been a harder thing. By the way, my wife loves the Tate Modern, one of her favorite museums. All Rights Reserved. Theres real inflation. I think because the private equity investing model has been really good for our clients, which are state pension plans, sovereign wealth funds, you know, ensuring the retirement safety of many tens of millions of people. Mr. Baratta owns 1,145,448 shares of Blackstone stock worth more than $105,312,489 as of April 20th. Mr. Baratta was elected to the board of directors effective March 2, 2020. 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. Mr.Barattaalso worked at Morgan Stanley in its mergers and acquisitions department. For a brief while, we had an office in Hamburg. 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. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. High-yield junk bonds still 'frothy': Blackstone - Yahoo Hes way more interesting than me. So what is $10 billion dollars . Is that the sort of infrastructure were talking about in addition to all the obvious ones weve been mentioning? BARATTA: Yeah. But were not seeing it. So I wanted to get a job at a private equity firm. His current reading is here; A transcript of our conversation is available here Tuesday. 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? Thats a pretty good run. And so we did, but we were kind of trying to do deals by airplane from New York, and thats not functional. We actually have assets where those are going in, or were investing in components that are part of . February 26, 2020 08:15 AM Eastern Standard Time. RITHOLTZ: By the way, there are a lot of different names for Blackstone. And the whole firm was maybe 200 total employees , BARATTA: not just investment people, total staff. Were seeing some companies have less pricing power maybe than they had a year ago. BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. Were seeing full employment. BARATTA: How could a kid from Sacramento be a Dallas Cowboys fan? But we can, things that are mature, things where weve realized value, sometimes were taking companies public and we can sell stock. Jesuit Announces Million Dollar Donation to School's Tuition Assistance What are some of your favorites? BARATTA: Well, you have to get him back. 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. And I was doing my pitch, so here I am, 30 years old. We dont have an ego and, you know, we can help facilitate transactions, whatever, U.S. perspective and global perspective. 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 . BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. But in the moment, it was less wonderful. 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. It has to be useful if you have skills. I think they were operating at the really top of the industry, really smart people, good track record. When I came to the city, I was like, wow, this place is amazing. Theres a little more friction in those types of industries. 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. BARATTA: I think that it changes so much fundamentally, that you cant hold on to like, you know, absolutes. I know the Savoy is in the U.K. and in Europe. Scottish & Newcastle was a big brewer up in Scotland at that time. 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. RITHOLTZ: Theyre nice sized property, nice set group of . RITHOLTZ: We take for granted totally that youre out in a car, you can pull over anywhere and tank up with gas. Blackstone: long-life private equity funds 'now an asset class' RITHOLTZ: tell us about Blackstones boss. 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. BARATTA: Yeah. Industry structures are changing. The other one I love is White Lotus, which is fantastic, not a Black Swan-related thing, also awesome. 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. The fund, Blackstone Core Equity Partners II, held the final close on its hard-cap of $8 billion, making it 70 percent larger than its 2016-vintage predecessor, according to a statement. Hours Left50% Off The Information Pro Ends TonightGet Pro. RITHOLTZ: Hell reach out to Steve, Steve will put you in touch. I think Id been to London Im not even sure Id been to London. BARATTA: and nice calling card. 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 Merlin Entertainments Group. BARATTA: And then, of course and now, look, theyre fun to watch. Where are you looking around the world? 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. 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. And when I . You know, you want to be able to control the exit. And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. Joseph Baratta on the Future of Private Equity - Apple Podcasts RITHOLTZ: Really quite interesting. Do you have to be selfish to be a striker? Its really quite fascinating. BARATTA: No, no. People were declaring last summer, were already in a recession. BARATTA: Yeah, right after I graduated college, I went to Georgetown in 1993. 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. As an example, the firm invested in Reese Witherspoons production company Hello Sunshine versus the legacy cable and satellite firms. BARATTA: I had agreed to go before September 11th happened. Im assuming you guys . BARATTA: No. It seems like private equity is qualitatively different than it was back in the early days. Were hiring summer interns now who are 19 and 20 years old. All of our earlier podcasts on your favorite pod hosts can be found here. No, no, thats I mean, the firm is called Blackstone, period. On average, Joseph trades about 53,227 units every 51 days since 2020. Yeah. Portions of this site are directed only to persons in certain jurisdictions. BARATTA: Yeah. And so. BARATTA: Like, it probably isnt going to happen forever. RITHOLTZ: So its not like the public markets where you could say sell here, buy there, because you have such obvious prints . But its nothing like it is today. Follow all of the fine family of Bloomberg podcasts on Twitter @podcast. And so, yeah, there was a lot of volatility. One-on-one with Joe Baratta: Navigating Today's Investment - YouTube Sebastian Escobar is my audio engineer. 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. 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. To me, this world is normal, not abnormal, with, you know, positive real interest rates. And so we partnered with a few local firms and actually one of our U.S. competitors to look at this big asset, because it was quite big. RITHOLTZ: Really intriguing. Deadly. BARATTA: Were not seeing evidence of it in the portfolio. How often does a new business model come along thats really notably different from what preceded it? We all wanted to get there fast, but I think its entered a new level. 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 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. We recently announced to take private of a technology company called Cvent, which is publicly traded. Because it looks like a couple of big companies push their way in, there were a couple of transactions, or is this going to, you know, be the fertilizer that launches a thousand blooms, or whatever the expression is? Behind the Deal Podcast: Merlin Entertainments - Blackstone Publicly traded Blackstone . 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? Am I exaggerating that at all or . BARATTA: And I think they nailed it. RITHOLTZ: And have done a pretty nice job, right? Youre still dealing with people in Brussels, and people in Paris, and people in Milan. You have your way. Atika Valbrun is our project manager. Private credit deals tend to be sold for plus. RITHOLTZ: Tell us what that growth has been like over the past 25 years? RITHOLTZ: firms or private equity firms? They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. Inside Blackstone's Plans to Create an Entertainment Empire 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. That is part of the energy transition. I was 29. And so I didnt know, you know, what finance was all about. And we did we became more cautious. We have been speaking with Joe Baratta. So lets talk about your mentors who helped shape your career. 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. Kirk Falconer - January 10 2022 + And they introduced me to and I wont name names, hes a wonderful guy. 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. For press inquiries, contact[emailprotected]. So even like undergone dusk could be successful. 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. So, yeah, thats been a fun thing to be in. And we were like, look, wed be great partners as youre looking at assets. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. 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 BARATTA: that are $10 billion to $15 billion-plus enterprise value company. Joe Baratta, The Blackstone Group: Profile and Biography - Bloomberg Markets Bloomberg TV+ Bloomberg Surveillance: Early Edition Bloomberg Surveillance: Early Edition with Francine Lacqua. BARATTA: Right into the thick of it, trying to figure out what a two younger might my colleague, David Blitzer, I think he was maybe 31. 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. The dot-com had just imploded. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. BARATTA: Well, one thing that John and Steve have done is to make sure the firm is really joined up across our investment businesses. You have your way. And so, yeah, it was helpful. This website uses cookies, including third-party cookies, in order to obtain information about your visit to the website and make this website better. RITHOLTZ: Let me ask you about India because it feels like, at least, in the public markets, India is always on like a year or two away from being the next big thing and it just hasnt seemed to happen. But were seeing solid demand. stonco lighting catalog. Youve been there for 25 years. Were seeing in our businesses real stability across most sectors. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. BARATTA: Yeah. But I cant explain it. BARATTA: into peoples pocketbooks, which massively accelerated the economy and rates stayed low. Who cares about brown shoes? RITHOLTZ: So heres the really interesting observation that youre making, Blackstone has boots on the ground in all these different sectors. And within Blackstone, our private equity funds are called Blackstone Capital Partners. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund.
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