joe baratta blackstone compensation

Im assuming you guys . And then the metaverse, you know, almost came and went already, a lot of hype there. You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. 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. Atika Valbrun is our project manager. I think they were operating at the really top of the industry, really smart people, good track record. Privacy Policy 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. "For any professional investor, this is the most difficult period we've ever experienced . BARATTA: Yeah. BARATTA: Yeah, right after I graduated college, I went to Georgetown in 1993. And so, Im proud of how we navigated that cycle, and I think were in a more normal world. You know, economically, thats a big thing. In London, in September, I had him come to talk about like what it means to be from where you should be deriving your happiness. 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. So I actually think, at the large end of the private equity market, were undercapitalized. When did that beckon? 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. 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. RITHOLTZ: Theyre nice sized property, nice set group of . BARATTA: I think people are very negative on the U.K. and . RITHOLTZ: Youre looking at the cost of capital and how much margin or leverage you want to assume. And I was like, geez, okay, well . People were declaring last summer, were already in a recession. Ive been a Dallas Cowboys fan since Im 7 years old. 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 . BARATTA: Patience. RITHOLTZ: And today, private equity has become immense compared to . RITHOLTZ: You want to control and be able to set how youre going to exit or how the firm is going to be run? You end up in London. You can take margins up. RITHOLTZ: You dont have the same labor costs. BARATTA: What weve found is that control is important in India. And I thought private equity was interesting because you could live with those investments for a longer period of time. BARATTA: No. Happy to be here. That was our first deal in Europe, which was actually a U.S. deal, but we probably wouldnt have done it had we not been there . But in the moment, it was less wonderful. Scottish & Newcastle was a big brewer up in Scotland at that time. BARATTA: Yeah. RITHOLTZ: You see that on the private market? RITHOLTZ: culturally or language-wise, when youre up you know, when youre bouncing from you know, you go to Frankfurt to Denmark, two totally different worlds. BARATTA: looking at the divestiture from Vivendi. The first deal we looked at was in France. BARATTA: into peoples pocketbooks, which massively accelerated the economy and rates stayed low. 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 . Is this just part of the life cycle of business, or do you go through these periodic spasms where everything changes? And, yes, if Jerry needs some help, you know, he knows who to call. RITHOLTZ: And businesses just have to exist. 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. Theres a scalability there that you dont get in the real world, which probably is why a lot of real-world assets eventually become attractively priced. BARATTA: Yeah. BARATTA: I mean, with all respect to the Joneses who run that team, you know . In the early days, do whats asked of them, do it as well as they can, and move on to the next step. BARATTA: But they were private equity. 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? 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. But youre looking at valuations and what sort of multiples you want to pay. Thats a pretty good run. Its obvious in the public markets, things get frothy. It sounds like you can scale up by partnering with lots of other PE firms. 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 How do you keep all that straight? BARATTA: They had bought a bunch of educational publishing assets, including U.S. textbook company, Houghton Mifflin, back when there were actually textbooks in schools. 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 . It was a small industry. And then at Blackstone, you know, Steve Schwarzman changed my life; and Tony James, who when I was about four years into Blackstone, really helped transform the firm and make it what it is today. I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. BARATTA: I think starting with the fundamentals, you know, the economy is quite sound. You know, bigger technology companies, software businesses that have proven theyve got really durable sticky revenue models. And were like, whoa, this is the sign, like this is the canary in the coal mine. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. You werent taken seriously. You have your way. So when youre adjusting your investment posture, youre basically saying were going to take more risk or less risk . Mr.Barattajoined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. We talked earlier about inflation and rising rates. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. Ive been following that series . Joe Baratta, Blackstone Group LP's top private equity dealmaker, can't be too cautious right now. RITHOLTZ: And everybody started drinking and we looked at each other, can we have a drink that morning? RITHOLTZ: So let me interrupt you right there. I do really think they nailed it. And there are thousands of companies in the U.S. . RITHOLTZ: and they then diversify and or Im sorry, they made them divest those vertically integrated holdings? And we were like, look, wed be great partners as youre looking at assets. On average, Joseph trades about 53,227 units every 51 days since 2020. And the whole firm was maybe 200 total employees , BARATTA: not just investment people, total staff. And the total AUM of our private equity business, AUM assets under management is roughly $80 billion, $90 billion. Those do seem to be valued relatively more attractively. But its nothing like it is today. This seems to really be a potential sea change. RITHOLTZ: Well, the past decade, the intangibles have been super attractive. Id been to, like, Paris and Venice or something. 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. BARATTA: watch media, changed the way we shop, changed the way we found information. Mr.Barattaalso worked at Morgan Stanley in its mergers and acquisitions department. 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. I mean, for us, in corporate private equity, no. And the guy looks at me like I had, you know, two horns coming out of my head, whos his young American? RITHOLTZ: And have done a pretty nice job, right? RITHOLTZ: I didnt realize philanthropy was that different overseas than it is here. And he was, you know, in that moment, completely dismissive. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. You could consume Saturdays with kids running around. RITHOLTZ: tell us about Blackstones boss. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . Hes way more interesting than me. In the last 16 years, insiders at Blackstone Inc have sold an estimated . Probably somewhere around 2004 or 05, we started doing things by ourselves. RITHOLTZ: Happy to have you. Valuations go up and you saw it, of course, in the late 90s, in the tech sector. BARATTA: Yeah. 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. RITHOLTZ: across all these different inputs. Well talk a little bit about your time in London later. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. For office-specific contact information, please visitour offices page. As an example, the firm invested in Reese Witherspoons production company Hello Sunshine versus the legacy cable and satellite firms. 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? IRL Suspended CEO Shafi After Reported Pattern of Misconduct; Acting CEO Named, By Mark Matousek · April 30, 2023 2:33 PM PDT. You got to get it elsewhere. He is very familiar with everything from M&A to credit, to real estate, on and on, and has had experiences both in the U.S. and overseas, really a global perspective on what took place in private equity in the past and what the future looks like. We have been speaking with Joe Baratta. BARATTA: You know, I had young kids. Meaning, your team, your group would be a Fortune Top 20 Company. RITHOLTZ: So we see a lot of hype business come along. How do I contact Joseph Baratta? When I started at Blackstone, I think weve just started investing our third private equity fund. This week, we speak with Joseph Baratta, who since 2012, has served as Global Head of Private Equity at Blackstone the worlds largest alternative asset manager, with $975 billion in assets under management. BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. What are some of your favorites? My friend and former Morgan Stanley analyst, colleague, Chad Pike, ran our European real estate stuff. And like I said, those companies arent too big to make good returns with. Theres really no absolutes. We had some real estate guys there. 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. 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. And when I . Where are you looking around the world? First Eagle Investment Management, you mentioned Medline earlier, Ancestry.com is probably things people are familiar with. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. So, were, were very much open for business in Europe, in the U.K. You know, the conflict has definitely been a drag to some degree in the economy, and introduces some uncertainty. Its where we have competitive differentiation, and its where you find better quality businesses. Incentive alignment in India has been a harder thing. Blackstone has raised the largest-ever long-hold private equity vehicle as interest in the strategy from both investors and managers increases.. By Andrew Ross Sorkin . And then by the time youre in your 40s, you can actually be good at this job. So one of our first hires, now, the man who runs our business in Europe, we hired this guy, Lionel Assant, whos French, and we hired Germans. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. BARATTA: I think private market valuations are driven to a large degree by whats going on in the public markets. So, yeah, thats been a fun thing to be in. So we were materially bigger than we were 25 years ago. So we were working with our real estate guys in health care facilities, and visitor attractions, and theme parks. 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. 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. 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: Exactly. Theres some like risk management things that you always need to be mindful of. 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. What was it like on the private side at the end in the 90s? 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. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. Im doing my pitch on Blackstone and were good friends. We hired an Italian for the firm, Andrea Valeri. So, as an investor, you have to be nimble. Obviously, rates are higher, but prices seem to have come down a bit. BARATTA: Exactly. Were seeing full employment. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. They introduced me to the head of a significant private equity firm in Europe. He joined Blackstone . 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. Lets start out with just a little background on your career. 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, you know, why is that? Signup for our newsletter to get notified about sales and new products. Joseph Baratta on the Future of Private Equity Masters in Business Investing Bloomberg Radio host Barry Ritholtz speaks with Joseph Baratta, who has served as global head of private equity at Blackstone - the world's largest alternative asset manager, with $975 billion in assets under management - since 2012. BARATTA: Yeah. BARATTA: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. BARATTA: Well, yeah, the private credit market I think is really attractive, and its actually been around a long time. 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. RITHOLTZ: in The Atlantic. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. 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. BARATTA: No, its hard, and what we began to do is hire local people. BARATTA: But these sort of Americans were tolerated, you know? RITHOLTZ: Really quite fascinating. India is very attractive. Its a solution and source of a problem, sort of. 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.

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