JosephBarattais the Global Head of Private Equity and a member of Blackstones Board of Directors. RITHOLTZ: Well, the past decade, the intangibles have been super attractive. And we did we became more cautious. You know, I sort of looked at, well, the industry in Europe is a good decade or two behind the U.S. BARATTA: So Steve said, we got to have real presence. 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. RITHOLTZ: Really interesting. RITHOLTZ: So you lasted two or three years, and then you get tapped to go to London in 2001. By the way, my wife loves the Tate Modern, one of her favorite museums. Theres really no absolutes. We have associated funds in Asia and an energy transition, and a long-dated vehicle that allows us to hold things for 15-plus years. Obviously, rates are higher, but prices seem to have come down a bit. Disclosures Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to consumers. BARATTA: Its certainly investable for venture investors and smaller guys who are willing to sort of dig holes in the ground and hope something comes out. RITHOLTZ: So you end up at Blackstone in 1998, at a time when public equity prices became a little unmoored and were on the way up to a real bubble. We do think, at some level, it does affect the cost structures. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. BARATTA: Were not seeing evidence of it in the portfolio. Jesuit Announces Million Dollar Donation to School's Tuition Assistance RITHOLTZ: I can imagine. So taking advantage of the currency declining, a lower cost base in India, but revenues denominated in dollars or euros. Joseph Baratta is 46, he's been the Global Head of Private Equity and Director of the Company of Blackstone Inc since 2020. BARATTA: So I think we just raised a small credit fund, which is $900 million, and then we had an M&A advisory business. You end up in London. Joseph P. Baratta serves as Global Head of Private Equity and Director of the Company of the Company. To me, this world is normal, not abnormal, with, you know, positive real interest rates. RITHOLTZ: Youre looking at the cost of capital and how much margin or leverage you want to assume. You werent taken seriously. And by the time theyre 30, they wanted to have, like, declared victory on their career. Like, the last $30 billion deal we did, I mean, we bought Medline in 2021. When I came to the city, I was like, wow, this place is amazing. And the whole firm was maybe 200 total employees , BARATTA: not just investment people, total staff. Over that 25-year period or even the past decade where youve tripled in size, its more than just quantitative. 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. Its very hard for us to assemble much more than a $5 billion equity check. So its a whole broad spectrum of investing in the energy complex focused on the transition from hydrocarbons to renewable sources. 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? You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. 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. Id been to, like, Paris and Venice or something. RITHOLTZ: in prices. I mean, inflation is higher than normal, but thats going to come down. I really wanted to learn how to invest money, not just be an advisor, and I thought private equity was cool because you werent at the whim of the market. Thank you, Joe, for being so generous with your time. RITHOLTZ: Thats very interesting because we typically think of private equity as looking at these mature non-public companies. Elon Musk May Yet Meet Twitter Executives in Court. RITHOLTZ: You dont have the same labor costs. Blackstone Seeks 'Coalition' Partners to Invest Like Buffett 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. 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. 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. This week, we speak with Joseph Baratta, who since 2012, has served as Global Head of Private Equity at Blackstone the worlds largest alternative asset manager, with $975 billion in assets under management. Joe Baratta to Join Blackstones Board of Directors 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. But we can, things that are mature, things where weve realized value, sometimes were taking companies public and we can sell stock. Joseph Baratta. How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 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. RITHOLTZ: Happy to have you. Its where we have competitive differentiation, and its where you find better quality businesses. I think because the private equity investing model has been really good for our clients, which are state pension plans, sovereign wealth funds, you know, ensuring the retirement safety of many tens of millions of people. 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. Exclusive: Blackstone grooms six executives for Schwarzman's job But, yes, thats the kind of thing were talking about. BARATTA: and nice calling card. And, you know, why is that? You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. Valuations go up and you saw it, of course, in the late 90s, in the tech sector. So we were materially bigger than we were 25 years ago. Your base of operations when youre in the U.K. is London, but youre back and forth to multiple countries. And weve become better at what we do in buying control of companies, engaging with them, making them better, helping them grow. Of course, I mean, France, Germany, Italy, Spain, you know, the whole Nordic region, Sweden, theyre not . I think they were operating at the really top of the industry, really smart people, good track record. 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. It was about $3 billion in total size. Anything with the patents or copyright and algorithm . Youve been listening to Masters in Business on Bloomberg Radio. And then when the Niners got good, I became a contrarian and said, no, Im going to root for the Cowboys . Is that the sort of infrastructure were talking about in addition to all the obvious ones weve been mentioning? So its been a great asset class. BARATTA: Yeah. But youre looking at valuations and what sort of multiples you want to pay. Now, in that moment, Americans were sort of viewed positively and as neutral. You have to have like an open mind and realize that things are changing. It seems a house of fire. 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. Financial Advisors, visit our dedicated website to learn how you can partner with Blackstone. 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 have been speaking with Joe Baratta. RITHOLTZ: And so you guys are expanding in the 2000s in Europe.
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