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. So I said, well, what kind of deals worked in the U.S. in the early 90s, in my experience? BARATTA: You know, I had young kids. The other one I love is White Lotus, which is fantastic, not a Black Swan-related thing, also awesome. He is an entrepreneur, attorney, consultant, and advocate for independent investment advisers, which is a $97 trillion industry. ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. 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. Im 30 when I moved, you know, yeah, because it was 2001 and, you know, it was just after September 11th. RITHOLTZ: Youre like late 20s at this time? RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. And, you know, Ive lived in great places. But it is looking at whats more attractive and whats less attractive. So what is $10 billion dollars . And there, we were two young Americans, no language skills, like what are we supposed to do? 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. And we were kind of oddities at that time, particularly in private equity which was still really in its infancy. 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. Its a great group of people, great organization. Joseph Baratta Net Worth (2023) | wallmine Switchboard: +1 (212) 583-5000. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. The acting is amazing. Get subscriber-only insights and news delivered by Barry daily. Deceptive. IRL Suspended CEO Shafi After Reported Pattern of Misconduct; Acting CEO Named, By Mark Matousek · April 30, 2023 2:33 PM PDT. Am I exaggerating that at all or . Elon Musk May Yet Meet Twitter Executives in Court - New York Times All Rights Reserved. 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. they do. 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. So Im watching the Cowboys like every Sunday. 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. I liked it, I thought I could build a successful career. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. It seems a house of fire. 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. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. 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. Fast. The music is great. BARATTA: Exactly. With no further ado, my discussion of private equity with Blackstones Joe Baratta. 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. And by the time theyre 30, they wanted to have, like, declared victory on their career. And the guy looks at me like I had, you know, two horns coming out of my head, whos his young American? Commitments from new limited partners, along with significant re-ups from Fund I LPs, attest to "more interest in the concept" today relative to four years ago, Baratta said. What sort of new markets are you guys considering? Yeah. RITHOLTZ: So here we are, enter the first quarter 2023, whats the environment look like relative to mid-2021? And then when the Niners got good, I became a contrarian and said, no, Im going to root for the Cowboys . RITHOLTZ: To say nothing of two people separated by a common language, right? joe baratta blackstone compensation. RITHOLTZ: So lets talk about some of those different types of funds. BARATTA: No. So lets talk about your mentors who helped shape your career. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. 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. And I was doing my pitch, so here I am, 30 years old. I love football. Its attracted a lot of capital. And in fact, I invited him to come talk to our partner group. You can take margins up. 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. BARATTA: Well, I would say in my 25-year history at Blackstone, there were certain industries that were growth industries that we were investing in in the mid 90s and late 90s and early 2000s, that now are no longer investable. He was the senior guy at that time. RITHOLTZ: You know, when there is no alternative, people just pile into equity. The most recent stock trade was executed by Joseph Baratta on 1 April 2023, trading 85,000 units of BX stock currently worth $7,337,200. So that is one sector that were investing, and that a decade ago, we wouldnt. Scottish & Newcastle was a big brewer up in Scotland at that time. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. So, clearly, that was a great time to pull back in mid-2021. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. 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. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. People were declaring last summer, were already in a recession. Blackstone (NYSE:BX) today announced that Joe Baratta, the firm's Global Head of Private Equity, will join its board of directors. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. BARATTA: Yeah. Its not just like the next deal, the next promotion, the name in the paper or whatever. But for listeners, you know, you dont have the same capital costs. You could consume Saturdays with kids running around. And I met the director one day and, you know, they asked me to get involved. Blackstone invests money on behalf of institutions and individuals, including more than 30 million U.S. pensioners. Mr.Barattajoined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. Private credit deals tend to be sold for plus. Ive heard people say Blackstone, Blackstone Group, Blackstone Partners. Who cares about brown shoes? Otherwise, we will assume you're OK to continue. At first, Blackstone executives discussed the idea of Mayer consulting with the firm or managing one of its existing portfolio companies. To view recent press releases,click here. BARATTA: Its a real thing in Europe. That doesnt happen. RITHOLTZ: Well, so far, youre pretty interesting. Read deeply reported stories from the largest newsroom in tech. 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. But, like, really, our preference is to do it just by ourselves. And were like, whoa, this is the sign, like this is the canary in the coal mine. You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. And I was like, geez, okay, well . Joseph Baratta is the Global Head of Private Equity and a member of Blackstone's Board of Directors. I have my way. We do think, at some level, it does affect the cost structures. Its obvious in the public markets, things get frothy. Were seeing some companies have less pricing power maybe than they had a year ago. So, yes, private equity valuations are influenced very significantly by whats going on in the public markets. We all wanted to get there fast, but I think its entered a new level. So I think thats kind of the realm were in. RITHOLTZ: I was waiting for you to say, and it was 10:00 a.m. and they broke open the bottles of Bordeaux. You know, energy prices are higher. We have been speaking with Joe Baratta. And David and I moved over to do the private equity stuff. Switchboard:+1 (212) 583-5000. BARATTA: So Steve said, we got to have real presence. BARATTA: Well, in our private equity business, were spending all of our time looking at things that touch the public markets, because that is where the valuation correction, you know, is really happening, where you can transact at prices lower today than they were two years ago. RITHOLTZ: in The Atlantic. And so. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. Thats just because . RITHOLTZ: What about geographies? One-on-one with Joe Baratta: Navigating Today's Investment - YouTube 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. Because people start so early, you have to do so much to get in college. 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. I know the Savoy is in the U.K. and in Europe. And enjoy the journey. BARATTA: You know, the book I most recently finished, by Arthur Brooks, a book on happiness. BARATTA: Like, it probably isnt going to happen forever. So I actually think, at the large end of the private equity market, were undercapitalized. Happy to be here. Like, look at Disney, you know, Disney, in large part, was hugely enabled by streaming services because of the amazing content it owned. 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.