Its obvious in the public markets, things get frothy. 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. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . Is finding the back of the net the hardest job in football? RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. We never have to sell, only when we want to because we control the companies. RITHOLTZ: Really interesting. And today, were knocking on the door of 5,000. Before joining Blackstone, Mr.Barattawas with Tinicum Incorporated and McCown De Leeuw & Company. And so for the last maybe, I dont know, 12 or so years, Ive been involved with the Tate Foundation. Elon Musk May Yet Meet Twitter Executives in Court - New York Times RITHOLTZ: youre stepping right into the thick of it? BARATTA: manufacturing those facilities. BARATTA: And then, of course and now, look, theyre fun to watch. So I actually think, at the large end of the private equity market, were undercapitalized. And weve become better at what we do in buying control of companies, engaging with them, making them better, helping them grow. RITHOLTZ: firms or private equity firms? And I was doing my pitch, so here I am, 30 years old. RITHOLTZ: in Europe. You see it in real-time across real estate, across labor . BARATTA: were probably three times the size as we were in 2012. Speaking on. Blackstone is one of the worlds leading investment firms. Im doing my pitch on Blackstone and were good friends. You know, energy prices are higher. 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. Its been almost a year. they do. * * * * * Thank you, Joe, for being so generous with your time. 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. Hes way more interesting than me. To view recent press releases,click here. How often does a new business model come along thats really notably different from what preceded it? US buyout giant Blackstone Group has announced the appointment of Joe Baratta, the former head of its European private equity team, as its new head of global private equity. It sounds like you can scale up by partnering with lots of other PE firms. Mr. Baratta owns over 85,000 units of Blackstone Inc stock worth over $99,814,339 and over the last 3 years he sold BX stock worth over $81,255,679. BARATTA: Yeah, Im 29 when Im asked. The Mysterious Man Behind - Institutional Investor 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. And as an asset class, theyve performed extremely well, with low incidence of loss, good returns. 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 . I mean, his family dates back to like Louis Quatorze. April 18, 2023 8:00am by Blackstone CEO Schwarzman took home $610.5 million in 2020 We hired an Italian for the firm, Andrea Valeri. RITHOLTZ: And today, private equity has become immense compared to . BARATTA: even though they lost in that 81 thing. The transcript from this weeks, MiB: Joe Barratta, Blackstones Global Head of Private Equity, is below. We dont spend too much time thinking about like when that might end and the ramifications of it. stonco lighting catalog. April 15, 2023 10:00am by Scottish & Newcastle was a big brewer up in Scotland at that time. Just like life gets in the way and I had, you know, a cool career going and I stuck with it. Joseph Baratta Net Worth, Biography, and Insider Trading 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. We actually have assets where those are going in, or were investing in components that are part of . 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? Obviously, rates are higher, but prices seem to have come down a bit. People were declaring last summer, were already in a recession. 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? Ive been following that series . Were down to our last two questions, what sort of advice would you give to a recent college grad who was interested in a career in private equity? You guys seem to play across a lot of different sizes. I think Id been to London Im not even sure Id been to London. So taking advantage of the currency declining, a lower cost base in India, but revenues denominated in dollars or euros. So I think the large end of the market we think is the most attractive. In the long run. And the total AUM of our private equity business, AUM assets under management is roughly $80 billion, $90 billion. And in the end, we ended up just buying the U.S. textbook business, Houghton Mifflin. I dont miss a game. You werent taken seriously. BARATTA: I go to California all the time. He is also a member of the firm's Management Committee and serves on many of the firm's investment committees. Blackstone: long-life private equity funds 'now an asset class' And, yes, if Jerry needs some help, you know, he knows who to call. Blackstone's Buyout Head Is Eyeing Public Companies 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. I think they were operating at the really top of the industry, really smart people, good track record. What attracted you to them in 1998 when they were still kind of a modest, small firm? And then, like I said, theyre very accessible. Business models are changing. There was a big consolidation and lots of divestitures of pubs that were owned by brewers in the time, and there were rules came down that brewers can own distributors. For information on our privacy practices see our Privacy Policy. RITHOLTZ: You start out in California. And I think, largely, you want to avoid highly regulated industries, where youre relying on the government to do something. BARATTA: I agree with you, I mean, 100 percent. So, yes, youre right, like, in the long run, fundamentals drive, determine share prices. 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. 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. The modern day striker has to be many things to make it to the top. You began more or less in the M&A space at Morgan Stanley, is that right? All of our earlier podcasts on your favorite pod hosts can be found here. Even when you read that announcement from that was 2012 . Inflation is significant. RITHOLTZ: tell us about Blackstones boss. So we share themes and we share these economic signals. I found this to be a fascinating conversation because Joes career has very much paralleled the growth of private equity. 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. 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. Switchboard: +1 (212) 583-5000. ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. Its where we play. . Privacy Policy 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. Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. Blackstone's Baratta Buys Townhouse - Business Insider I mean, you know, this is probably 2002. View stories on our mobile app and tune into our weekly podcast. Joseph Baratta net worth, bio and Blackstone Inc insider trades. 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. Tell us about those experiences. 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? It was about $3 billion in total size. And it also happens to be a production of one of our portfolio companies, Hello Sunshine. Barry Ritholtz. Are goalscorers born or made? Joe Baratta, The Blackstone Group: Profile and Biography - Bloomberg Markets Bloomberg TV+ Bloomberg Surveillance: Early Edition Bloomberg Surveillance: Early Edition with Francine Lacqua. 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. Get subscriber-only insights and news delivered by Barry daily. Behind the Deal Podcast: Merlin Entertainments - Blackstone RITHOLTZ: Thats right. I have my way. And we were like, look, wed be great partners as youre looking at assets. Yeah. joe baratta blackstone compensation RITHOLTZ: than the first one. I had no language skills. BARATTA: But they were private equity. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. RITHOLTZ: And have done a pretty nice job, right? He is an entrepreneur, attorney, consultant, and advocate for independent investment advisers, which is a $97 trillion industry. Previously, Mr. Baratta served as the Senior Managing Director at the Blackstone Group, Private Equity Group. What is it like being on these boards? RITHOLTZ: Well, so far, youre pretty interesting. BARATTA: I was watching the 10:00 a.m. game. Do you have to be selfish to be a striker? But youre looking at valuations and what sort of multiples you want to pay. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. Tell us a little bit about the work you do with them. 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 . No, no, thats I mean, the firm is called Blackstone, period. Joseph Baratta is the Global Head of Private Equity and a member of Blackstone's Board of Directors. 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. RITHOLTZ: So lets talk a little bit about some of those places. Mr. Baratta has been with Blackstone for 22 years, including ov 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. Now, in that moment, Americans were sort of viewed positively and as neutral. RITHOLTZ: Yeah, supposed to be sort of loosely fashion day . At that point in my career, I was 20 I think 27 years old, I wanted to attach my myself to a firm that I thought really had a lot of growth potential, where I could learn from the best people in the industry, and that certainly was what I found there. Joe reflects on what the end of easy monetary policy and near-term growth headwinds mean for investors. BARATTA: You know, the book I most recently finished, by Arthur Brooks, a book on happiness. RITHOLTZ: in prices. We talked earlier about inflation and rising rates. BARATTA: Well., they definitely did that. Baratta explains how the firm thinks about dislocation and change, and the steps they take to make sure they are investing on the disruptor and not the disrupted side. And the market hasnt loved owning manufacturing industrial-type businesses. I think were 4,500 , BARATTA: or something like that. Privacy Policy BARATTA: Exactly. This seems to really be a potential sea change. 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. RITHOLTZ: We take for granted totally that youre out in a car, you can pull over anywhere and tank up with gas. Joseph Baratta. BARATTA: Yeah. 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. So lets talk about your mentors who helped shape your career. You mentioned real estate, private equity, M&A. NEW YORK-- ( BUSINESS WIRE )--Blackstone (NYSE:BX) today announced that Joe Baratta, the firm's Global Head of Private Equity, will join its . Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. I mean, at least, it was back then. You can take margins up. 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. Blackstone buys Clarus to bulk up in life sciences | Reuters That is part of the energy transition. And then the metaverse, you know, almost came and went already, a lot of hype there. High-yield junk bonds still 'frothy': Blackstone - Yahoo But, yes, thats the kind of thing were talking about. BARATTA: Well, its not necessarily a problem to do that with some of our friendly competitors. Theres definitely been proof of concept for large scale institutional investors and even retail investors, that we can produce sustainable, predictable, above public market returns. We started doing deals on our own. 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? And so, in the early 90s, analysts had these big investment banks, Morgan Stanley, Goldman Sachs, had sort of two or three options, you can stay there and become an investment banker and do that for a career, you could go into the emerging fields of investing in private equity or in hedge funds, or you go to business school, or maybe go to business school later. The firm had had , RITHOLTZ: Do you need language skills in England, or is it . Blackstone Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. 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. RITHOLTZ: How did you first get involved with them? Three things to know about Blackstone's $8bn long-hold strategy 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. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. Barry Ritholtz. Disclosures RITHOLTZ: At what point does size become the enemy? And, you know, why is that? RITHOLTZ: Theres still textbooks in schools. You know, in the market, its like if you start at the wrong time, if youre wrong for a few quarters, like, boom, like the career is abbreviated. Feel free to sign up for my daily reading list at ritholtz.com. And so, yeah, there was a lot of volatility. It has to be useful if you have skills. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. 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. His current reading is here; A transcript of our conversation is available here Tuesday. Blackstone Joe Baratta Finance Manager Boca Raton, FL INFINITI of Coconut Creek, +10 more Joe Baratta I/O Psychologist, Trustee, Vice Chair Lake Tahaoe School Board, CEO TBIG Investments. 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. RITHOLTZ: So let me interrupt you right there. BARATTA: I think private credit has filled the hole for these smaller businesses, but really not on the full banking suite. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. India is very attractive. BARATTA: you know, company-based. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. 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 they introduced me to and I wont name names, hes a wonderful guy. Elon Musk May Yet Meet Twitter Executives in Court. And enjoy the journey. 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. And the fact that financing costs are higher, kind of its neither here nor there because our returns are not predicated really on the cost of financing. But if we can find a great business at a reasonable price in Europe, were going to buy it. Thursday July 19, 2012 11:50 pm. The first job for Morgan Stanley was McCown De Leeuw. 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. And also, there are new business models, new media models. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. 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 . RITHOLTZ: I wonder, do fundamentals matter more, or is it really just a question of how far away from fundamentals can public equities get, either to the upside or the downside where it creates some form of opportunity, which kind of raises the question, how closely do private market fundamentals track whats going on in the public markets? You could only wear black shoes. 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? 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 . Two years ago, Joe Baratta couldnt figure out what Blackstone, the private equity giant he worked for, should do for its next move in media and entertainment. Roger Staubach, Tony Dorsett, Tony, RITHOLTZ: Oh, really? 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. Its attracted a lot of capital. Where are you looking around the world? Ive been super lucky to have these fun adventures, whether or not with Stanley. RITHOLTZ: And you guys, your bread and butter is not forecasting the economy. BARATTA: I think private market valuations are driven to a large degree by whats going on in the public markets. BARATTA: particularly this offseason, theyve done a nice job. And so, we bought the pub business. I mean, for us, in corporate private equity, no. RITHOLTZ: You know, when there is no alternative, people just pile into equity. We cant do that. Why am I talking to him? And so. He is also a member of the firms Management Committee and serves on many of the firms investment committees. RITHOLTZ: Really quite interesting. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. How are you looking at a geopolitical event like that affecting, you know, whats taking place on the continent? 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, you know, cost structures are a little less efficient there may be than in the U.S. now. Its where we have competitive differentiation, and its where you find better quality businesses. 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 .