Blackstone PE chief to leave firm after 28 years

Joe Baratta, one of Blackstone’s longest-serving senior executives and a key figure in the firm’s private equity business, is set to leave the alternative asset manager by the end of the year after 28 years with the firm, according to a report by Bloomberg.

Blackstone confirmed Baratta’s departure in an internal memo to employees, adding that his current position as global head of private equity strategies will not be filled.

Chief executive Steve Schwarzman and president Jon Gray said Baratta had spent years building a team of experienced investors capable of running Blackstone’s individual private equity strategies and funds. They said the strength of the firm’s existing leadership meant there was no need to appoint a direct successor to his role.

Baratta had led Blackstone’s private equity business for more than a decade before moving into a broader global role last year. The division now oversees approximately $450bn, including private equity strategies spanning buyouts and other areas.

His departure comes during a period of broader management changes at Blackstone. Real estate chief Nadeem Meghji and growth strategy head Jon Korngold have also left the firm during the past year.

Baratta’s tenure coincided with a significant expansion of Blackstone’s private equity platform, although its recent investment performance has reflected the more challenging conditions across the buyout industry following the rise in interest rates.

Blackstone’s four most recent flagship private equity funds to have completed their investment periods had generated net internal rates of return of 12% or less as of the end of June, according to the figures reported. The firm’s latest flagship fund also took longer than anticipated to raise and secured $21bn, below its original $30bn target.

The broader private equity platform has nevertheless continued to expand. Blackstone’s private equity assets, including infrastructure, secondaries and tactical opportunities, increased 17% year-on-year during the second quarter.

Baratta joined Blackstone in 1998, shortly after the firm had completed fundraising for its third private equity fund. He moved to London three years later to establish its European private equity operation and became global head of the strategy in 2012.

During his career at Blackstone, Baratta was involved in several major investments, including the firm’s acquisitions of Merlin Entertainments, owner of the Legoland theme parks, and Hilton Worldwide, with Blackstone ultimately generating substantial returns from the latter investment.

Blackstone now manages approximately $1.3tn across private equity, real estate, infrastructure, credit and hedge funds.