MarketCounsel and Hamburger Law Firm are the leading business & regulatory compliance consultancy to the countrys preeminent entrepreneurial independent investment advisers in the investment and securities industry. RITHOLTZ: And businesses just have to exist. RITHOLTZ: Renewable meaning wind, solar, nuclear, whatever? Get subscriber-only insights and news delivered by Barry daily. Energy has been a major investment theme across many of our businesses in credit and corporate private equity. My sense is that AI and chatbots, and the recent, you know, multibillion dollar acquisitions that have been done by firms like Microsoft and Google, this doesnt seem to be that sort of ephemeral hype story. We were much more networked. Focus now turns to Lionel Assant, the man widely expected to replace him at the helm of the firm's European division. 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. A special committee of messaging app IRLs board of directors suspended CEO Abraham Shafi on Friday after receiving a report from outside counsel that outlined a pattern of misconduct by Shafi, an IRL spokesperson told The Information. RITHOLTZ: Thats right. Blackstone Seeks 'Coalition' Partners to Invest Like Buffett 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. BARATTA: Well, yeah, the private credit market I think is really attractive, and its actually been around a long time. Ive been super lucky to have these fun adventures, whether or not with Stanley. BARATTA: Yeah. BARATTA: Yeah. Now, the firm had assets. What attracted you to them in 1998 when they were still kind of a modest, small firm? 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. And so, in private equity . 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. Joseph Baratta net worth, bio and Blackstone Inc insider trades. We actually have assets where those are going in, or were investing in components that are part of . But, you know, when I moved, you didnt have the single currency in circulation until January of 02. 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 by the time theyre 30, they wanted to have, like, declared victory on their career. Thats another in market that were investing in today, that maybe a decade ago, we wouldnt have been. Its a solution and source of a problem, sort of. * * * * * And today, were knocking on the door of 5,000. Now, in that moment, Americans were sort of viewed positively and as neutral. 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. As an example, the firm invested in Reese Witherspoons production company Hello Sunshine versus the legacy cable and satellite firms. 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. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. BARATTA: Yeah. Business models are changing. Joseph Baratta on the Future of Private Equity - Apple Podcasts These are people who were, you know, in their late 20s, early 30s, oldest maybe mid-30s, and they kind of grew up with the firm, and they were able to be the translator, so to speak, both physically and culturally, in some of these other countries. Privacy Policy Mr. Baratta also worked at Morgan Stanley in its mergers and acquisitions department. 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. Disclosures 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. Maybe theyre not run that efficiently. RITHOLTZ: But youre not dealing with startups; youre dealing with . It was a small industry. BARATTA: Yeah. And, you know, I grew up at the foothills of the Sierra Nevada Mountains, and I love to go there. Hes probably 42 or 43. I mean, I think the biggest deal thats been done in the last 10 years is around $30 billion and that, you know, yeah, to get that done, we had to work with two of our competitors, which is fine. The first job for Morgan Stanley was McCown De Leeuw. I mean, you know, this is probably 2002. RITHOLTZ: Really interesting. Like, look at Disney, you know, Disney, in large part, was hugely enabled by streaming services because of the amazing content it owned. The Fed was saying, no, its transitory or whatever adjective they used. By submitting this request, you consent to receive email from Blackstone. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. Disputes over compensation and firings, and potentially over layoffs, could push both sides into fresh legal battles. But I dont think were going to go back to the days of 2019 to 2021. Its really quite fascinating. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. I mean, you have a bunch of companies that have trillion dollar-plus market caps. Joseph Baratta is an American business executive who is Global Head of Private Equity at Blackstone, a New York-based global asset management giant. BARATTA: Yeah. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. The estimated net worth of Joseph Baratta is at least $105.31 million as of April 3rd, 2023. Im assuming you guys . Previously, Mr. Baratta served as the Senior Managing Director at the Blackstone Group, Private Equity Group. Atika Valbrun is our project manager. BARATTA: No, its hard, and what we began to do is hire local people. 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. Publicly traded Blackstone . Blackstone Hires Droga5 Chief Strategy Officer Jonny Bauer To - Forbes Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. When I came to the city, I was like, wow, this place is amazing. Before joining Blackstone, Mr.Barattawas with Tinicum Incorporated and McCown De Leeuw & Company. 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: Yeah, supposed to be sort of loosely fashion day . 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 . We combined it with another one. So its a whole broad spectrum of investing in the energy complex focused on the transition from hydrocarbons to renewable sources. And, you know, I needed to earn some money and I was adept in finance. When I started at Blackstone, I think weve just started investing our third private equity fund. 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. BARATTA: No. BARATTA: Yeah, hes amazing. So you move to the U.K. RITHOLTZ: Youre an hour to hop from all the key places . But thats not uncommon to see private equity firms taking companies private and transacting with public companies. Blackstone's Top Dealmaker Says Now Is The Most Difficult Period He's And so, thats what we were able to do to a large degree, is to become more conservative, to become more cautious on valuations, you know, as we started seeing evidence of inflation, and thinking that rates were probably going to go up at some point. BARATTA: We leaned into exiting what we could in that period. So thats been a really important book Ive read recently, and I think hes great. BARATTA: Its a real thing in Europe. Read deeply reported stories from the largest newsroom in tech. 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. So, really, in private equity, our first adventure outside of Western Europe was in India and China, and that was somewhere around 2005. RITHOLTZ: To say nothing of two people separated by a common language, right? 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? Transcript: Joe Barratta of Blackstone - The Big Picture "The current volatile and unpredictable environment reinforces . Inflation is significant. I think they were operating at the really top of the industry, really smart people, good track record. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. RITHOLTZ: I dont want to suggest that thats what we hear. I mean, inflation is higher than normal, but thats going to come down. BARATTA: I mean, as much as we could. RITHOLTZ: And you had mentioned private credit before, that seems to have been a giant growth area, especially when rates were at zero, when people arent seeing a whole lot of returns from fixed income. BARATTA: Yeah, Im 29 when Im asked. 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. Thank you, Joe, for being so generous with your time. And then when the Niners got good, I became a contrarian and said, no, Im going to root for the Cowboys . 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. RITHOLTZ: Is AI investable? 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. When did Blackstone start to look at Asia? 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. Theres really no absolutes. BARATTA: So Steve said, we got to have real presence. 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. 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? You see these things before they start to show up in the economic data. BARATTA: I was watching the 10:00 a.m. game. BARATTA: And I think they nailed it. And were like, whoa, this is the sign, like this is the canary in the coal mine. High-yield junk bonds still 'frothy': Blackstone - Yahoo Thats a pretty good run. Youve been there for 25 years. Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. So, clearly, that was a great time to pull back in mid-2021. MiB: Joe Barratta, Blackstone's Global Head of Private Equity Mr. Baratta served as the Senior Managing Director and Head of European Private Equity at The Blackstone Group. So I wanted to get a job at a private equity firm. And in fact, I invited him to come talk to our partner group. That sounds quite fascinating. RITHOLTZ: So how much of this is a function of a trend we sort of began in the 1990s? RITHOLTZ: By the way, there are a lot of different names for Blackstone. And he was, you know, in that moment, completely dismissive. Lets start out with just a little background on your career. So we share themes and we share these economic signals. Calhoun will lead Blackstone's private equity portfolio management group, which basically means that he will aid CEOs with various operational challenges. Anything with the patents or copyright and algorithm . Just like life gets in the way and I had, you know, a cool career going and I stuck with it. Weve had a big business there for a long time and we see really attractive assets. BARATTA: Exactly. RITHOLTZ: At what point does size become the enemy? So we did a lot of these sorts of consolidation place. Those two men really were extremely important in my professional development, my personal development, great, amazing mentors. 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. And today, the clear direction of travel is toward weaning ourselves or these big economies off of hydrocarbons for power. But I could have evolved more quickly as an investor, you know, over time, and I continue to learn that lesson. Blackstone secured $8.2 billion for a second long-life offering, 70 percent more than the strategy's 2016-vintage debut fund. 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. BARATTA: Yeah. Industry structures are changing. The transcript from this weeks, MiB: Joe Barratta, Blackstones Global Head of Private Equity, is below. 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 . And we want to invest not just in digital virtual assets, but also in physical assets. Its where we play. So lets talk a little bit about the state of PE investing today. It was more of a cottage industry. All the places youve mentioned, like Germany is very different than the Switzerland . RITHOLTZ: Youre looking at the cost of capital and how much margin or leverage you want to assume. Scottish & Newcastle was a big brewer up in Scotland at that time. 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. There werent that many firms. 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. We hired an Italian for the firm, Andrea Valeri. 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? BARATTA: I had agreed to go before September 11th happened. I mean, for us, in corporate private equity, no. We cant do that. Whats appealing? You can see the complete history of Mr. Baratta stock trades at the bottom of the page. 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. I got an analyst job at Morgan Stanley in the M&A group, and thats kind of two-year training program and I did that and that was painful. Blackstone Inc's most recent insider trade came on April 4, 2023 by Joseph Baratta who sold 85,000 units worth $7.34M . Most recently he sold 85,000 units of BX stock worth $7,337,200 on 1 April 2023. Mr. Baratta joined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. Joseph Baratta. 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. And they introduced me to and I wont name names, hes a wonderful guy. 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. And enjoy the journey. Ive been hearing recession chatter it seems like for six months, at least. Paris Wald is my producer. BARATTA: I mean, with all respect to the Joneses who run that team, you know . 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. Speaking on. BARATTA: But these sort of Americans were tolerated, you know? I mean, I was in my mid-20s and, you know, looking to build a career in private equity. 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. What are you reading right now? Well talk a little bit about your time in London later. 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. Sean Russo is my researcher. 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. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land The most active insiders traders include James Breyer, Hamilton E James, and International Group Incaig . Who cares about brown shoes? RITHOLTZ: And when you say Steve, for those people who may not be familiar with . A Blackstone View on the Next Wave of Buyouts - LinkedIn RITHOLTZ: How did you first get involved with them? You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. Those do seem to be valued relatively more attractively. And so, you know, that was kind of the strategy Day 1. So the rate of increases is declining. The music is great. You mentioned private credit. And I think, largely, you want to avoid highly regulated industries, where youre relying on the government to do something. Monitor your investments 24 hours a day, around the clock from around the globe. Get subscriber-only insights and news delivered by Barry daily. You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. 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. And the cost of financing and the quantum isnt the biggest driver of our returns. Mr.Barattajoined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstones corporate private equity business in Europe. RITHOLTZ: Really interesting answer. 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. You know, we spent a lot of time looking at traditional media businesses that linear TV, satellite broadcast, regional sports networks, all these things, that the direction of travel isnt really investable, the streaming services, direct to consumer. 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. It takes a long time to figure out like how you get good at something and the particular way you want to do it. RITHOLTZ: and they then diversify and or Im sorry, they made them divest those vertically integrated holdings? Ive been following that series . It has to be growing. The goal: to help bring brand . There werent that many people. I remember completely empty plane flying over to London , BARATTA: with my then girlfriend, moving to London. BARATTA: If Apple decides it wants to buy something for, you know, 10, 20, 30, 40, it doesnt blink, and there are a lot of companies like that. But were seeing solid demand. Yeah. Were seeing some companies have less pricing power maybe than they had a year ago. Theres a little more friction in those types of industries. I was supposed to go over you know, in November, I ended up doing that. RITHOLTZ: tell us about Blackstones boss. For office-specific contact information, please visit our our offices page. 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. And so, yeah, and weve had limited partners in our funds whove been with us since the early 90s now and keep re-upping because we deliver a good return for their beneficiaries. And, you know, why is that? April 18, 2023 8:00am by It changed the way we communicated with each other. I think the one thing Ive seen in this generation of people, like me and you, is we all were impatient. BARATTA: And I had very modest expectations like, geez, if I can last two or three years, at least I will have done it. You know, that did not happen when we were kids. He is the Global Head of Private Equity at Blackstone. Joe Baratta, Blackstone Group LP's top private equity dealmaker, can't be too cautious right now. FourFourTwo gets inside the mind of a striker, interviewing the masters of the art and the men who have to mark them, including Jermain Defoe, Romelu Lukaku, Michael Owen, Martin Keown and Ledley King. Exclusive: Blackstone grooms six executives for Schwarzman's job Blackstone invests money on behalf of institutions and individuals, including more than 30 million U.S. pensioners. View stories on our mobile app and tune into our weekly podcast. Do you have the same phenomenon in the private market? How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Obviously, rates are higher, but prices seem to have come down a bit. RITHOLTZ: So really a period of transition and . 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? 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. BARATTA: You know, I had young kids. Blackstone was right on their heels back then. Blackstone's Buyout Head Is Eyeing Public Companies How are you looking at a geopolitical event like that affecting, you know, whats taking place on the continent? Your base of operations when youre in the U.K. is London, but youre back and forth to multiple countries. Joseph Baratta | Year Up 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? Mr.Barattagraduated magna cum laude from Georgetown University. Joe reflects on what the end of easy monetary policy and near-term growth headwinds mean for investors. And, yes, if Jerry needs some help, you know, he knows who to call. And so, Im proud of how we navigated that cycle, and I think were in a more normal world. The other one I love is White Lotus, which is fantastic, not a Black Swan-related thing, also awesome. RITHOLTZ: Oh, really? So even like undergone dusk could be successful. The IOC and FIFA are scrambling to change their ways before it's too late.

Bringing Fireworks From Nevada To California, Dr Ken Berry Rheumatoid Arthritis, Articles J