joe baratta blackstone compensation

You had Lehman almost go bust, I think, around that time for maybe the first or second time. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. RITHOLTZ: But youre not dealing with startups; youre dealing with . My friend and former Morgan Stanley analyst, colleague, Chad Pike, ran our European real estate stuff. Atika Valbrun is our project manager. 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. BARATTA: No, its hard, and what we began to do is hire local people. Meet the frontrunner to lead Blackstone in Europe And then, like I said, theyre very accessible. I mean, I was in my mid-20s and, you know, looking to build a career in private equity. So we operate from a board level and really focus on key strategic and risk management variables. Were coming off of a period of low inflation, low rates, and suddenly we have higher inflation and rising rates. And also, there are new business models, new media models. You have your way. Mr. Baratta joined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. BARATTA: Well., they definitely did that. Sometimes we buy things from our competitors, particularly if we think we can make them a lot bigger through acquisition or other things. It sounds like you can scale up by partnering with lots of other PE firms. Probably somewhere around 2004 or 05, we started doing things by ourselves. RITHOLTZ: Really quite interesting. Were seeing in our businesses real stability across most sectors. Blackstone on LinkedIn: Global Head of Private Equity, Joe Baratta The Mysterious Man Behind - Institutional Investor 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. 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. Joseph Baratta - Biography - MarketScreener.com These are physical assets. Lets start out with just a little background on your career. Its a great group of people, great organization. RITHOLTZ: So we see a lot of hype business come along. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. Before joining Blackstone, Mr.Barattawas with Tinicum Incorporated and McCown De Leeuw & Company. Sebastian Escobar is my audio engineer. 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. 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. Blackstone: long-life private equity funds 'now an asset class' He helped to build out Blackstones PE business in Europe in 2001, moving to London in 2001. Were seeing maybe wage increases beginning to decline. So thats been a really important book Ive read recently, and I think hes great. Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. What attracted you to them in 1998 when they were still kind of a modest, small firm? RITHOLTZ: But youre still dealing with a lot of European at that time. Sean Russo is my researcher. One-on-one with Joe Baratta: Navigating Today's Investment - YouTube BARATTA: Well, yeah, the private credit market I think is really attractive, and its actually been around a long time. Like, look at Disney, you know, Disney, in large part, was hugely enabled by streaming services because of the amazing content it owned. BARATTA: Wind, solar, electrifying the economy, getting off of oil and gas, and its all kinds of companies engaged. That sounds quite fascinating. 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. BARATTA: No. Hes way more interesting than me. Im 30 when I moved, you know, yeah, because it was 2001 and, you know, it was just after September 11th. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. they do. Happy to be here. Clever. So I wanted to get a job at a private equity firm. And so we did, but we were kind of trying to do deals by airplane from New York, and thats not functional. 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. 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: I think early on, it was important until we established ourselves, and then we did less of that. I would be remiss if I did not thank the fine team who help put this conversation together each week. Three things to know about Blackstone's $8bn long-hold strategy I have to point out that your life history is a series of ever-worsening weather. And within Blackstone, our private equity funds are called Blackstone Capital Partners. BARATTA: No, no. And the size of our private equity business is you know, were now on our ninth fund. RITHOLTZ: in prices. BARATTA: Yeah, thats part of it. In 2006, 07, 08, you saw the financial crisis. And so I didnt know, you know, what finance was all about. We still continue, in many of our companies, to struggle to fill open roles. Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. I mean, you know, this is probably 2002. What are some of your favorites? But for listeners, you know, you dont have the same capital costs. 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 . Switchboard: +1 (212) 583-5000. 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. But its nothing like it is today. Terms and Conditions. Ive been a Dallas Cowboys fan since Im 7 years old. You could consume Saturdays with kids running around. RITHOLTZ: I didnt realize philanthropy was that different overseas than it is here. Matthew Delly on LinkedIn: Areas of thematic investing focus from BARATTA: Steve Schwarzman, our co-founder and CEO and chairman and, you know, amazing mentor and great businessman. So I actually think, at the large end of the private equity market, were undercapitalized. And so, you know, that was kind of the strategy Day 1. Yeah. BARATTA: Yes. Deadly. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. Switchboard:+1 (212) 583-5000. RITHOLTZ: So eventually you leave Morgan Stanley, you ended up at Tinicum Incorporated and McCown De Leeuw & Company. And there are thousands of companies in the U.S. . The first deal we looked at was in France. And I know the size, it was 32, 33, 34, $35 billion. 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: And when you say Steve, for those people who may not be familiar with . 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. Then, in the fall of 2020, Baratta huddled with Kevin Mayer, a longtime Disney executive who had just left TikTok as CEO of the social media app. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. 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. We have been speaking with Joe Baratta. The Tate is such a significant cultural institution in the U.K. Its funded largely by the state. But were seeing solid demand. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. Privacy Policy The first job for Morgan Stanley was McCown De Leeuw. "This is a platform we will build on in the life. I mean, there have been leveraged loans and high yield bonds since the 1980s. BARATTA: Yeah. RITHOLTZ: Lets talk about books. RITHOLTZ: And businesses just have to exist. * * * * * We back them with capital and support, and we let them run the businesses. It takes a long time to figure out like how you get good at something and the particular way you want to do it. Thursday July 19, 2012 11:50 pm. As of 1 April 2023 he still owns at least 1,145,448 units of Blackstone Inc stock. Energy has been a major investment theme across many of our businesses in credit and corporate private equity. How Greed and Easy Money Corrupted Wall Street and Shook the World Economy And enjoy the journey. RITHOLTZ: Post Brexit, is that the driver? 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 taking advantage of the currency declining, a lower cost base in India, but revenues denominated in dollars or euros. So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. Joe Baratta - Private Equity - Blackstone | LinkedIn So you move to the U.K. RITHOLTZ: Youre an hour to hop from all the key places . The private equity firm has hired Droga5 Chief Strategy Officer Jonny Bauer as head of brand transformation for its portfolio group of more than 200 companies. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. Please click here if you would like more information about the cookies used on this website and how to change your cookie settings. RITHOLTZ: And have done a pretty nice job, right? 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. For information on our privacy practices see our Privacy Policy. joe baratta blackstone compensation BARATTA: looking at the divestiture from Vivendi. It seems a house of fire. You know, we bought Hilton in June of 2007. What are you looking at that might not have been on the table a decade ago? I mean, his family dates back to like Louis Quatorze. The whole aesthetic of it is amazing. I mean, some of your holdings like Hilton, obviously, giant. I mean, for us, in corporate private equity, no. And I met the director one day and, you know, they asked me to get involved. It is an institutionalized asset class. But, you know, when I moved, you didnt have the single currency in circulation until January of 02. So we were working with our real estate guys in health care facilities, and visitor attractions, and theme parks. RITHOLTZ: And everybody started drinking and we looked at each other, can we have a drink that morning? High-yield junk bonds still 'frothy': Blackstone - Yahoo RITHOLTZ: Really interesting. 40+ "Joe Baratta" profiles | LinkedIn I dont miss a game. He is also a member of the firm's Management Committee and serves on many of the firm's investment committees. 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. His current reading is here; A transcript of our conversation is available here Tuesday. For press inquiries, contact[emailprotected]. Calhoun will lead Blackstone's private equity portfolio management group, which basically means that he will aid CEOs with various operational challenges. Deceptive. RITHOLTZ: Really interesting. Fast. Do you have to be selfish to be a striker? What was it like on the private side at the end in the 90s? And by the time youre in your 50s, with some wisdom, you can be really good at the job. 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 quite fascinating. Joseph Baratta. 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. Meaning, your team, your group would be a Fortune Top 20 Company. You werent taken seriously. So given the change in size of private equity over the past 25 years, is there a sweet spot? RITHOLTZ: Yeah. RITHOLTZ: Lets talk a little bit about your career at Blackstone. Business models are changing. So, yeah, thats been a fun thing to be in. 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. 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. So, yes, private equity valuations are influenced very significantly by whats going on in the public markets. BARATTA: We leaned into exiting what we could in that period. I mean, at least, it was back then. He is an entrepreneur, attorney, consultant, and advocate for independent investment advisers, which is a $97 trillion industry. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. Blackstone's Buyout Head Is Eyeing Public Companies 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. Feel free to sign up for my daily reading list at ritholtz.com. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . 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. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. Our model is not to run the companies. RITHOLTZ: and they then diversify and or Im sorry, they made them divest those vertically integrated holdings? There are 23 older and 2 younger executives at Blackstone Inc. BARATTA: Yeah. And so. Long-term fund strategies, only an idea a few years ago, have come of age as investors see early evidence of performance, Joe Baratta, Blackstone's global head of private equity, said in an interview with Buyouts. Its very hard for us to assemble much more than a $5 billion equity check. You know, the blockchain, when it came people like, hmm, Im always like, whats the use case? You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. Theres nothing intimidating about those institutions, and then I knew some people who are involved. RITHOLTZ: across all these different inputs. We do think, at some level, it does affect the cost structures. Clearly, there was a ton of hype in crypto. You get paid for the incremental risk that youre taking in a more leveraged capital structure. Blackstone buys Clarus to bulk up in life sciences | Reuters So, really, in private equity, our first adventure outside of Western Europe was in India and China, and that was somewhere around 2005. Follow me on Twitter @ritholtz. BARATTA: watch media, changed the way we shop, changed the way we found information. They also share their perspectives on the opportunity in live entertainment, one of our high-conviction investment themes. Transcript: Joe Barratta of Blackstone - The Big Picture Publicly traded Blackstone . He was the senior guy at that time. 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? BARATTA: Exactly. April 18, 2023 8:00am by We cant do that. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. 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. And then by the time youre in your 40s, you can actually be good at this job. Weve had a big business there for a long time and we see really attractive assets. Those do seem to be valued relatively more attractively. Disclosures But I dont think were going to go back to the days of 2019 to 2021. But cable television models or satellite TV, like, those suffered.