I love football. This website uses cookies, including third-party cookies, in order to obtain information about your visit to the website and make this website better. Blackstone already manages $439 billion across alternative assets such as private equity and real estate, and is looking for ways to grow further. So even like undergone dusk could be successful. I think they were operating at the really top of the industry, really smart people, good track record. In this podcast, Joe and Peter discuss Blackstone's history building Merlin into a global leader, and our long-term investment plans to help the company continue to expand. That doesnt happen. So what is $10 billion dollars . How do you keep all that straight? From 2004 until 2010, we were having babies, and one of the places we would always go is either Tate Britain or Tate Modern. We had some real estate guys there. RITHOLTZ: So I really liked the first season. BARATTA: Yeah. You mentioned real estate, private equity, M&A. Is that the sort of infrastructure were talking about in addition to all the obvious ones weve been mentioning? You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. And so, in private equity . BARATTA: I think starting with the fundamentals, you know, the economy is quite sound. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. 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. Matthew Delly on LinkedIn: Areas of thematic investing focus from 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. 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. 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? 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. We had a global partner off-site in private equity. To view recent press releases, click here. Thats why, as an investor, Im much happier today because were able to buy things more cheaply. 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: Yeah. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. BARATTA: And I think they nailed it. You mentioned private credit. So it was a beneficiary of the technology change. Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. Venture capital was the nomenclature for everything that was basically a private investment. We were trying to figure out whether any of these assets were investable, said Baratta, global head of private equity at Blackstone, referring to media companies. BARATTA: watch media, changed the way we shop, changed the way we found information. You could only wear black shoes. Im Barry Ritholtz. And they introduced me to and I wont name names, hes a wonderful guy. And the size of our private equity business is you know, were now on our ninth fund. Is there a ceiling, or at what point you look at something and say, hey, thats just too big to try and take a bite on? Our People - Blackstone We talked earlier about inflation and rising rates. Who cares about brown shoes? How are you looking at a geopolitical event like that affecting, you know, whats taking place on the continent? People were declaring last summer, were already in a recession. RITHOLTZ: Really intriguing. 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. BARATTA: So Steve said, we got to have real presence. In private equity, you know, were owning things for 5, 6, 10 years and were not subject to, like, the vicissitudes of the market in the short run. Blackstone buys Clarus to bulk up in life sciences | Reuters Privacy Policy BARATTA: How could a kid from Sacramento be a Dallas Cowboys fan? The Tate Foundation is the private philanthropic arm of the Tate that helps fund special projects, whether its exhibitions or building new buildings, you know, the big Tate Modern gallery was, in large part, funded by private donations. Paris Wald is my producer. BARATTA: looking at the divestiture from Vivendi. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. Get subscriber-only insights and news delivered by Barry daily. Meet the frontrunner to lead Blackstone in Europe You werent taken seriously. It is an institutionalized asset class. RITHOLTZ: after the Fleetwood Mac story, with all the cross-relationships. Business models are changing. 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. 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. And then it evolved. We started doing deals on our own. 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: I got a lot of good friends from high school. For information on our privacy practices see our Privacy Policy. Kirk Falconer - January 10 2022 + We cant do that. BARATTA: No. 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. And like I said, those companies arent too big to make good returns with. And then the metaverse, you know, almost came and went already, a lot of hype there. 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. When I started at Blackstone, I think weve just started investing our third private equity fund. BARATTA: technology. RITHOLTZ: By the way, there are a lot of different names for Blackstone. RITHOLTZ: which is very different than the Nordic countries. The estimated Net Worth of Joseph Baratta is at least $181 Million dollars as of 1 April 2023. 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? RITHOLTZ: across all these different inputs. 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 . ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. And they had like bottles of Bordeaux on the conference room table. Yeah. Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. BARATTA: Yeah. So its a whole broad spectrum of investing in the energy complex focused on the transition from hydrocarbons to renewable sources. I mean, there is some degree of like heightened caution concern, because when you do take rates up and really tighten financial conditions, there are consequences in the economy at some point. And I wanted to work in a place that was operating at the highest level, with the smartest people, where I could learn the most, and see if I could hang, you know, so to speak, with the best. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. Because it looks like a couple of big companies push their way in, there were a couple of transactions, or is this going to, you know, be the fertilizer that launches a thousand blooms, or whatever the expression is? joe baratta blackstone compensation. What is energy transition? So the rate of increases is declining. So lets talk about your mentors who helped shape your career. And there are thousands of companies in the U.S. . 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. And as an asset class, theyve performed extremely well, with low incidence of loss, good returns. I mean, this is the ultimate French establishment. Theres really no absolutes. And so, Im proud of how we navigated that cycle, and I think were in a more normal world. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. Joseph Baratta on the Future of Private Equity - Apple Podcasts BARATTA: No, no. Of course, I mean, France, Germany, Italy, Spain, you know, the whole Nordic region, Sweden, theyre not . You guys seem to play across a lot of different sizes. Industry structures are changing. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. And also, there are new business models, new media models. And then by the time youre in your 40s, you can actually be good at this job. And so, you know, my base case was that it wouldnt and youd have like called it wonkily like mean reversion in global cost of capital, which means rates would go up, market risk premiums would go up, you know, PE multiples would come down, credit spreads would probably gap out. BARATTA: I just got done with Daisy Jones & The Six . A Blackstone View on the Next Wave of Buyouts - LinkedIn To view recent press releases,click here. And there are many more $10 billion companies today than there was 12 or 15 years ago. Blackstone's Baratta Buys Townhouse - Business Insider So, really, in private equity, our first adventure outside of Western Europe was in India and China, and that was somewhere around 2005. Follow all of the fine family of Bloomberg podcasts on Twitter @podcast. BARATTA: I mean, with all respect to the Joneses who run that team, you know . I have my way. RITHOLTZ: Post Brexit, is that the driver? Its obvious in the public markets, things get frothy. Hours Left50% Off The Information Pro Ends TonightGet Pro. I dont miss a game. And so, in terms of where our teams are spending time, its in and around sort of public markets. BARATTA: I agree with you, I mean, 100 percent. BARATTA: Well, one thing that John and Steve have done is to make sure the firm is really joined up across our investment businesses. I was 29. BARATTA: Yeah. Clever. How did the buildout go for a couple of young Americans saying, hey, we want to play with this private equity thing in the EU? BARATTA: Yeah, Im 29 when Im asked. Disclosures 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 . 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. Im assuming that all these different names all come from different work products, different strategies, different funds, or is just everybody getting this wrong? Privacy Policy But thats not uncommon to see private equity firms taking companies private and transacting with public companies. RITHOLTZ: And so you guys are expanding in the 2000s in Europe.
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