joe baratta blackstone compensation

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. I think its really important for people who are workaholics, who are high achievers to put, you know, everything that were doing every day into context and define happiness kind of outside that box. 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 never have to sell, only when we want to because we control the companies. And he was, you know, in that moment, completely dismissive. In 2006, 07, 08, you saw the financial crisis. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. 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. Weve had a big business there for a long time and we see really attractive assets. BARATTA: No, no. 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. Joe Baratta, The Blackstone Group: Profile and Biography Exclusive: Blackstone grooms six executives for Schwarzman's job BARATTA: Like, it probably isnt going to happen forever. I think a big chunk of what we do over our history has been taking companies private and doing corporate carve-outs from public company, so non-core assets that a large company is divesting, family-owned businesses. You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. I was supposed to go over you know, in November, I ended up doing that. It takes a long time to figure out like how you get good at something and the particular way you want to do it. BARATTA: watch media, changed the way we shop, changed the way we found information. He is the Global Head of Private Equity at Blackstone. 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? Industry structures are changing. 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. You get paid for the incremental risk that youre taking in a more leveraged capital structure. The Tate is such a significant cultural institution in the U.K. Its funded largely by the state. High-yield junk bonds still 'frothy': Blackstone - Yahoo 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. RITHOLTZ: than the first one. And I think if you add it all up, we have about $40 billion of funds that were currently investing in their investment period. April 18, 2023 8:00am by Brown shoes that are for like, you know . Global Head of Private Equity, Joe Baratta, shared insights on how Blackstone is thinking long-term in this business cycle and how investors can prepare - by focusing intently on sector &. RITHOLTZ: underneath it, because you dont have this obviously, and Im not going to teach you about the private equity business. Joe Baratta Private Equity at Blackstone New York, New York, United States 130 followers Join to view profile Blackstone Activity We are delighted to welcome Ajay Banga to General Atlantic. 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? Is that the sort of infrastructure were talking about in addition to all the obvious ones weve been mentioning? I love football. RITHOLTZ: So heres the really interesting observation that youre making, Blackstone has boots on the ground in all these different sectors. You know, the blockchain, when it came people like, hmm, Im always like, whats the use case? And the whole firm was maybe 200 total employees , BARATTA: not just investment people, total staff. You could consume Saturdays with kids running around. And so. And I know the size, it was 32, 33, 34, $35 billion. But it is looking at whats more attractive and whats less attractive. So, yeah, thats been a fun thing to be in. RITHOLTZ: Really intriguing. In addition, he makes $0 as Global Head of Private Equity and Director of the Company at Blackstone Inc. Joseph has made over 11 trades of the Blackstone Inc stock since 2020, according to the Form 4 filled with the SEC. 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. 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. Overnight on Wall Street is morning in Europe. RITHOLTZ: Really interesting. Mr. Joseph Patrick Baratta, also known as Joe, has been the Global Head of Private Equity at The Blackstone Group, Private Equity Group since July 2012. And so, you know, that was kind of the strategy Day 1. RITHOLTZ: At what point does size become the enemy? Transcript: Joe Barratta of Blackstone - The Big Picture RITHOLTZ: So let me interrupt you right there. Joseph Baratta net worth, bio and Blackstone Inc insider trades. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? 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 I actually think, at the large end of the private equity market, were undercapitalized. And by the time youre in your 50s, with some wisdom, you can be really good at the job. So I wanted to get a job at a private equity firm. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. It seems like private equity is qualitatively different than it was back in the early days. they do. You know, that did not happen when we were kids. 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. He is also a member of the firms Management Committee and serves on many of the firms investment committees. Joseph Baratta is Global Head of Private Equity and a member of the firm's Management Committee. 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. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. BARATTA: Yes. But were seeing solid demand. But we ended up being you know, that was an example of, like, I just think we were discounted, but it was really early in the development of private equity. The goal: to help bring brand . ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. You mentioned real estate, private equity, M&A. Were seeing in our businesses real stability across most sectors. 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. Mr.Barattahas served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of Ancestry, Candle Media, First Eagle Investment Management, Medline and Merlin Entertainments Group. So we were working with our real estate guys in health care facilities, and visitor attractions, and theme parks. I have my way. Joseph Baratta on the Future of Private Equity - Apple Podcasts We had a global partner off-site in private equity. BARATTA: into peoples pocketbooks, which massively accelerated the economy and rates stayed low. Thats why, as an investor, Im much happier today because were able to buy things more cheaply. I remember completely empty plane flying over to London , BARATTA: with my then girlfriend, moving to London. RITHOLTZ: To say nothing of two people separated by a common language, right? BARATTA: You know, I had young kids. Otherwise, we will assume you're OK to continue. BARATTA: Wind, solar, electrifying the economy, getting off of oil and gas, and its all kinds of companies engaged. February 26, 2020 08:15 AM Eastern Standard Time. BARATTA: Well., they definitely did that. RITHOLTZ: But youre not dealing with startups; youre dealing with . So we were materially bigger than we were 25 years ago. He is also a member of the firm's Management Committee and serves on many of the firm's investment committees. 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. RITHOLTZ: in Europe. 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. This seems to really be a potential sea change. 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. 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. Im not saying were clairvoyant and we handled everything perfectly. BARATTA: Yeah. 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. How often does a new business model come along thats really notably different from what preceded it? On average, Blackstone Inc executives and independent directors trade stock every 59 days with the average trade being worth of $43,777,685. BARATTA: I had agreed to go before September 11th happened. That doesnt happen. Its been almost a year. joe baratta blackstone compensation. How do I contact Joseph Baratta? 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. 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: And have done a pretty nice job, right? 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. A former employee of SoftBank-backed messaging app IRL alleged in a legal filing that the company has inflated its user count and retaliated against him and other employees who raised concerns about the accuracy of its user numbers. at the top of the firm, you know, Steve, John, a few others of us who are on the management committee are really able to push down into the organization like what were seeing and to change investment behaviors. There werent that many people. Its very hard for us to assemble much more than a $5 billion equity check. Hours Left50% Off The Information Pro Ends TonightGet Pro. BARATTA: I think people are very negative on the U.K. and . Then we did other similar investments, particularly with real estate content, the pubs all own their real estate. BARATTA: Well, its not necessarily a problem to do that with some of our friendly competitors. Youve been there for 25 years. You had the Russia . So I think thats kind of the realm were in. Abraham Shafi has stepped down as CEO of messaging app IRL following allegations that the company used bots to inflate the users it reported publicly and to investors, according to a person with direct knowledge. So I think the large end of the market we think is the most attractive. RITHOLTZ: And today, private equity has become immense compared to . Since 2012, Mr.Barattahas served as the firms Global Head of Private Equity and is located in New York. Follow me on Twitter @ritholtz. I do really think they nailed it. RITHOLTZ: And you guys, your bread and butter is not forecasting the economy. I would be remiss if I did not thank the fine team who help put this conversation together each week. So we did a lot of these sorts of consolidation place. 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 . Learn More Get subscriber-only insights and news delivered by Barry every two weeks. 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. BARATTA: A growing economy, zero cost to capital, markets compounding at 15, 16, 17 percent. Matthew Delly on LinkedIn: Areas of thematic investing focus from RITHOLTZ: Oh, really? 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. Happy to be here. And there, we were two young Americans, no language skills, like what are we supposed to do? Clearly, there was a ton of hype in crypto. Mr. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? So, you know, you could go to France, maybe they didnt love, you know . So Im really proud of what they did there, and its a great show. BARATTA: I agree with you, I mean, 100 percent. The firm had had , RITHOLTZ: Do you need language skills in England, or is it . But I love the announcement when you were promoted to Global Head of PE from Blackstone, they said the 73 investments and pending deals youre involved, and combined for $117 billion in revenue, the equivalent of the 13th largest company by revenue on the Fortune 500 list. MiB: Joe Barratta, Blackstone's Global Head of Private Equity April 15, 2023 10:00am by Barry Ritholtz This week, we speak with Joseph Baratta, who since 2012, has served as Global Head of Private Equity at Blackstone - the world's largest alternative asset manager, with $975 billion in assets under management. It sounds like a good background for someone who eventually ends up buying companies. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. We were much more networked. BARATTA: Yeah, thats part of it. 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 . RITHOLTZ: Similar to U.S. antitrust rules . His current reading is here; A transcript of our conversation is available here Tuesday. 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. Thats just because . The transcript from this weeks, MiB: Joe Barratta, Blackstones Global Head of Private Equity, is below. So I said, well, what kind of deals worked in the U.S. in the early 90s, in my experience? Again, were not perfect. Do you have the same phenomenon in the private market? Its attracted a lot of capital. 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: firms or private equity firms? Private equity was still, Id say, in the first phase of its existence, and Blackstone was one of them. BARATTA: Yeah. He joined Blackstone . It wasnt very long after the handover of Hong Kong to China, like a lot of things were changing in both the U.K. and Europe. BARATTA: Yeah, right after I graduated college, I went to Georgetown in 1993. We talked earlier about inflation and rising rates. RITHOLTZ: Right. There were a few firms, couple of big leaders like KKR. You have your way. We dont spend too much time thinking about like when that might end and the ramifications of it. So that is one sector that were investing, and that a decade ago, we wouldnt. I mean, at least, it was back then. 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. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. I mean, you know, this is probably 2002. Meet the frontrunner to lead Blackstone in Europe And in fact, I invited him to come talk to our partner group. The music is great. 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 . And, you know, Ive lived in great places. BARATTA: Yeah. Mr. Baratta was elected to the board of directors effective March 2, 2020. When I started at Blackstone, I think weve just started investing our third private equity fund. It was more of a cottage industry. Theyre predicated on buying a good business, doing something to make it grow more quickly, and having an attractive exit when we come to sell it, which means it has to be a good business. I dont know what they call themselves back then. Hes way more interesting than me. Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. Nielsen CEO heading to private equity | Fortune BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. And we did we became more cautious. Am I exaggerating that at all or . Follow all of the fine family of Bloomberg podcasts on Twitter @podcast. To me, this world is normal, not abnormal, with, you know, positive real interest rates. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life by Arthur C. Brooks. 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. So, as an investor, you have to be nimble. I thought the conversation was quite fascinating, and I think you will as well. How Greed and Easy Money Corrupted Wall Street and Shook the World Economy They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. We do think, at some level, it does affect the cost structures. And also, there are new business models, new media models. Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. By Andrew Ross Sorkin . 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. I know there are lots of different funds. Baratta, who joined the firm in 1998, is also a member of the board of directors and serves on multiple management committees, as well as the firms investment committees. For office-specific contact information, please visitour offices page. For press inquiries, contact[emailprotected]. Joe Baratta to Join Blackstones Board of Directors First Eagle Investment Management, you mentioned Medline earlier, Ancestry.com is probably things people are familiar with. Even when you read that announcement from that was 2012 . We had some real estate guys there. So given the change in size of private equity over the past 25 years, is there a sweet spot? Your base of operations when youre in the U.K. is London, but youre back and forth to multiple countries. Where is the most fertile ground for growth size-wise? So taking advantage of the currency declining, a lower cost base in India, but revenues denominated in dollars or euros. BARATTA: particularly this offseason, theyve done a nice job. No, no, thats I mean, the firm is called Blackstone, period. Blackstone was right on their heels back then. And its cool and, you know, Bitcoin or whatever, theyre just probably a real store of value. My friend and former Morgan Stanley analyst, colleague, Chad Pike, ran our European real estate stuff. RITHOLTZ: based on whats going on. and Merlin Entertainments Group. 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. Joseph Baratta - Biography - MarketScreener.com BARATTA: were probably three times the size as we were in 2012. 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. RITHOLTZ: You start out in California. We had our second real estate fund, which was I think about $1.2 billion or $1.3 billion. And for the last six or seven years, the way weve been expressing investing in energy is an energy transition, so in companies that are helping accelerate the transition from burning hydrocarbons to produce electricity and energy, to renewable sources. Jesuit Announces Million Dollar Donation to School's Tuition Assistance For a brief while, we had an office in Hamburg. These are physical assets. RITHOLTZ: I never would have guessed that. I dont miss a game. Joe reflects on what the end of easy monetary policy and near-term growth headwinds mean for investors. Obviously, rates are higher, but prices seem to have come down a bit. Blackstone is one of the worlds leading investment firms. RITHOLTZ: Hell reach out to Steve, Steve will put you in touch. Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. What are you reading right now? RITHOLTZ: But youre still dealing with a lot of European at that time. Blackstone 3d Amid global economic uncertainty and the ongoing recovery from COVID's systemic shock, we asked Global Head of Private Equity Joe Baratta for his perspective on the current. BARATTA: Exactly. 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 . You had Lehman almost go bust, I think, around that time for maybe the first or second time. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. And the size of our private equity business is you know, were now on our ninth fund. RITHOLTZ: you know, 20, 25 years ago. BARATTA: No. RITHOLTZ: Happy to have you. If you enjoy this conversation, well, be sure and check out any of the previous 500 or so weve done over the past eight years. 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: Yeah. In the short run, there can be distortions in public market valuations as we saw in 2001 and we saw prior to that in 2007, and prior to that in 2000, in 99. RITHOLTZ: You dont have the same labor costs. BARATTA: I mean, with all respect to the Joneses who run that team, you know . To view recent press releases,click here. Were hiring summer interns now who are 19 and 20 years old. RITHOLTZ: Really quite fascinating. 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. And I was like, geez, okay, well . Tell us a little bit about the work you do with them. I mean, for us, in corporate private equity, no. 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. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. So we share themes and we share these economic signals. And there are thousands of companies in the U.S. . How ChatGPT is Roiling 13 Software Companies, By Kevin McLaughlin, Aaron Holmes and Anissa Gardizy, Apples AI Chief Struggles With Turf Wars as New Era Begins, In Google Founders Shadow, CEO Pichai Discovered the Limits of His Power, IRLs CEO Steps Down After Allegation of Inflated User Numbers, Former IRL Employee Alleges Company Inflated User Count. Blackstone Group is talking to its biggest investors to create a "coalition of the willing" that can buy control of large companies outside its existing funds, according to Joe Baratta, head . RITHOLTZ: Really interesting. Ive been hearing recession chatter it seems like for six months, at least. Not to say like we executed on that vision perfectly, I mean, we would have made some mistakes, but we definitely became much more cautious when the bull market really ramped up, in particular, post COVID, when not only did you have the low rates which the Fed double down on, you had this huge transfer payment from the federal government . BARATTA: Even more mature companies. You go to D.C. You go to New York. Thats interesting. 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 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. Mr.Barattagraduated magna cum laude from Georgetown University. Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. 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? Since joining Blackstone in 1998, Mr. Baratta has been involved in the execution of Blackstone's investments in Universal Orlando, Nycomed Pharmaceuticals, Houghton Mifflin, Spirit Group and was responsible for Blackstone's investments in First Eagle Investment Management . 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.

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