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Speaker 1: This is Mesters in Business with Very Results on Bluebird Radio.

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Speaker 1: This week, on the podcast, I have an extra special guest,

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Speaker 1: Joan Solitar. She's the global head of Private Wealth Solutions

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Speaker 1: at private investment giant black Stone. They run about six

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Speaker 1: four billion dollars in assets. The Private Wealth Solution Group

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Speaker 1: runs over a hundred billion dollars and man, this is

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Speaker 1: name it. If you're interested in any sort of alternative investment,

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Speaker 1: from private equity to real estate, to non traded rates

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Speaker 1: to debt and credit, you're gonna find this to be

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Speaker 1: absolutely fascinating. Joan has had really an amazing career from

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Speaker 1: from research uh to she helped bring black Stone public.

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Speaker 1: She's just got a tremendous background and is incredibly knowledgeable

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Speaker 1: about the space. I only suggests listening to this twice

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Speaker 1: because a lot of stuff goes by quickly with no

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Speaker 1: further ado. My conversation with Joan Solotar. This is Master's

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Speaker 1: in Business with Very Renaults on Bloomberg Radio. My special

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Speaker 1: guest this week is Joan Solotar. She is Blackstone's global

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Speaker 1: head of Private Wealth Solutions. She has been named one

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Speaker 1: of the hundred most Influential Women in Finance several years running.

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Speaker 1: Black Stone is the world's largest alternative asset manager, with

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Speaker 1: six four billion in assets. Jones Department, the Private Wealth

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Speaker 1: Solution manages over a hundred billion dollars in assets. Before

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Speaker 1: joining black Stone in two thousand and seven, Miss Solotar

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Speaker 1: was head of equity research at Bank America Securities and

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Speaker 1: a highly ranked institutional investor All Star. Joan Solotar, Welcome

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Speaker 1: to Bloomberg. Thank you, thanks for having me my pleasure. So,

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Speaker 1: so let's talk a little bit about your career. You

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Speaker 1: were at Credit Swiss and uh D l J as

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Speaker 1: a highly ranked analyst. What what did you cover? What

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Speaker 1: was your space? I covered financial services pretty much anything

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Speaker 1: non bank uh so started in insurance and then wound

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Speaker 1: my way to you know, mortgage insurance companies. Eventually really

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Speaker 1: focused on the brokerage industry and asset management. Very interesting.

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Speaker 1: And then you end up at a Bank America Maryland Securities.

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Speaker 1: You were head of research there, correct that I know

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Speaker 1: lots and lots of folks from old Mother Meryl were

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Speaker 1: either strategists or in the research department. How did you

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Speaker 1: leap from there to Blackstone? So? When I was at

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Speaker 1: D l J, I worked on the firm's public offering.

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Speaker 1: We were spun out of Equitable and Tony James was

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Speaker 1: president of d LJ Very Senior credit Suites, and then

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Speaker 1: he went over to become president of Blackstone and called

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Speaker 1: me when they filed to go public to see if

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Speaker 1: I would join to help them with that process and

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Speaker 1: run sharehold relations and strategy, which is what I did initially. So,

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Speaker 1: so how do you transition from shareholder relations to private

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Speaker 1: wealth solutions? So I I've held a few different roles

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Speaker 1: at Blackstone. I'd say the common theme among them is

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Speaker 1: that I've always worked across the entire firm and in

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Speaker 1: private wealth. I was asked to move in and and

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Speaker 1: really create a scale, global business, and so I took

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Speaker 1: the skill set that I had around uh, being a

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Speaker 1: strategic thinker and being able to manage teams of people,

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Speaker 1: which I did at UM at b of A, and

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Speaker 1: really applied that here the last six years. So you

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Speaker 1: were there pre I p O, two weeks pre IPO. Okay,

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Speaker 1: so that counts a little bit a little. I was

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Speaker 1: going to ask you what the difference was working at

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Speaker 1: a private company versus a public company, but I don't

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Speaker 1: know how much that would apply you've mostly been at

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Speaker 1: public companies your whole career. Yes, well, d l J

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Speaker 1: was subsidiary of Equitable, which was a subsidiary of Access,

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Speaker 1: So until it yourself went public, didn't feel like that.

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Speaker 1: It felt very much UM in a lot of similar

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Speaker 1: ways to Blackstone, like a partnership, and even Blackstone when

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Speaker 1: I first joined, you know, fewer than a thousand employees,

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Speaker 1: it was, it felt like a partnership, still small, and

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Speaker 1: now it's considerably larger than than a thousand employees, isn't

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Speaker 1: it correct? So probably not as big as many think,

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Speaker 1: But we're about a little more than three thousand employees globally.

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Speaker 1: That's that's quite a chunk. So black Stone has made

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Speaker 1: a very large bet on the individual, focusing on one

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Speaker 1: to five million dollar clients through investment advisors. Tell us

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Speaker 1: a little bit about the thinking behind that move, because

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Speaker 1: I think when most people think of of black Stone,

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Speaker 1: they think big institutions, not individuals. So you have to

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Speaker 1: really go back in time, and I'll put my strategy

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Speaker 1: pat back on UM. During the financial crisis, we were

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Speaker 1: thinking a lot about where money was coming from for

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Speaker 1: our funds, and we were very heavily dependent upon us

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Speaker 1: pension funds, who are still quite an important set of

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Speaker 1: clients for the firm, And at that time we made

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Speaker 1: the decision to expand internationally, both Europe and Asia, and

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Speaker 1: then also start to think about how we would approach

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Speaker 1: private wealth. Uh So we started distributing through the big

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Speaker 1: wire houses initially and really focused on qualified purchasers. Uh

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Speaker 1: so those five million and above who could invest in

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Speaker 1: the traditional private equity funds UM. But more and more

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Speaker 1: we were getting inquiries, well, how do we give access

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Speaker 1: to good products, good service to more people. And for that,

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Speaker 1: uh we began creating bespoke funds to address that market.

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Speaker 1: And these are accredited investors or not, and somewhat more

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Speaker 1: sophisticated than UM the average investor. When I was preparing

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Speaker 1: for this, I came across a Business Insider column that

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Speaker 1: described what you you said was your AHA moment that

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Speaker 1: totally changed your career. Tell us what was that moment

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Speaker 1: I believe you're referring to. When I was at d

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Speaker 1: l J and one of the we call them principles

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Speaker 1: like partners came into my office and said, Hey, you know,

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Speaker 1: I'm going to this dinner tonight for Principles and and

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Speaker 1: you really should be there, but you need to tell

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Speaker 1: people that becoming a principle is important to you. And

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Speaker 1: that just never occurred to me. I just thought, like,

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Speaker 1: you put your head down, you do a job, and

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Speaker 1: someone's like, oh, let's make let's make her a principle.

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Speaker 1: And I'm sure that often is the case, but it

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Speaker 1: certainly isn't always the case. And so I went into

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Speaker 1: the office of the head of research and just said,

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Speaker 1: I think I deserved to be principal for the following reasons.

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Speaker 1: It is something that's very important to me. And I

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Speaker 1: was named a principle that year. So let's talk a

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Speaker 1: little bit about black Stone. They've created a tremendous amount

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Speaker 1: of wealth with their limited partners and employees as well

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Speaker 1: as their shareholders. What do you have to do to

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Speaker 1: stay ahead of the pack? This is a hyper competitive

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Speaker 1: space with billions and billions of dollars looking for an edge.

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Speaker 1: What does Blacks don't have to do to keep its

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Speaker 1: leadership role. I think it's a great question. Uh. Steve

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Speaker 1: Schwarzman often says that there's nothing patentable in finance, meaning

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Speaker 1: everyone in the world can see what you're doing and

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Speaker 1: they're app to copy it. If it's successful, so you

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Speaker 1: have to keep moving and for our firm, that means

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Speaker 1: continuing to find new areas where we see great investment

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Speaker 1: opportunities where others aren't as competitive, and that might mean

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Speaker 1: you know, we are, for example, the biggest real estate

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Speaker 1: investor in the world, so from a scale perspective, there

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Speaker 1: are transactions we can do that no one else can do.

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Speaker 1: And building that kind of scale in life sciences, in

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Speaker 1: direct lending, in private equity, which is a bit more competitive,

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Speaker 1: but again not at the scale that we're at, that's

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Speaker 1: been a huge advantage for us, especially in this environment.

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Speaker 1: Huh So, so you're running the Global Private Wealth Group,

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Speaker 1: tell us about that role and what your responsibilities include.

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Speaker 1: So it's been just terrific to be involved in the

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Speaker 1: building of this business. So essentially we are running Private

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Speaker 1: Wealth as an end to end business rather than a

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Speaker 1: sales organization. And what does that mean. It means everything

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Speaker 1: from product development on the front end, to providing education

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Speaker 1: for advisors and marketing material, using data analytics to better

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Speaker 1: focus our salespeople, and having a robust investors erviss team

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Speaker 1: on the back end and doing that globally, so serving

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Speaker 1: your clients. Uh In Japan with folks who are on

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Speaker 1: the ground speaking Japanese and having websites in native language,

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Speaker 1: which may sound obvious, but takes a lot of people,

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Speaker 1: a lot of effort, and we've been able to continue

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Speaker 1: to vault ahead of the competition. So you mentioned investors

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Speaker 1: and clients, who are the clients tell us about a

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Speaker 1: typical PWS investor. So I'll divide the clients into really

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Speaker 1: three buckets. At the wealthiest end our family offices which

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Speaker 1: are often run like institutions with the chief investment officer, cetera,

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Speaker 1: but really want a single point of contact into all

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Speaker 1: the Blackstone offers. The next tronche would be qualified purchasers,

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Speaker 1: so folks also very wealthy individuals with five million dollars

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Speaker 1: or more, and they really are by SEC standards allowed

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Speaker 1: to invest in anything. A big part of the market.

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Speaker 1: It's what we call accredited in the US. It has

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Speaker 1: different names all over the world, but essentially investors with

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Speaker 1: one to five million dollars who want and historically have

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Speaker 1: not had access to great product. And we also do

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Speaker 1: serve investors who are below the million dollar level, but

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Speaker 1: not with that many products that are suitable for them,

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Speaker 1: and and so one to five five plus. I tend

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Speaker 1: to think of family offices as fifty plus, but I

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Speaker 1: know that number some people say, some people say hundred.

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Speaker 1: How do you look at family offices? Typically we really

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Speaker 1: haven't defined it that way, but I think you're fifty

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Speaker 1: million is probably a good place. So now an investor

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Speaker 1: has five or ten million dollars in a total portfolio,

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Speaker 1: and I'm just spit bowling here. They have a million immunis,

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Speaker 1: they have another six seven million in traditional, active and

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Speaker 1: passive funds, and they have a couple of million dollars

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Speaker 1: lying around that. They're looking for a little more non correlated,

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Speaker 1: maybe a little alpha. How do you fill that gap

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Speaker 1: for that client? Are you selling that through O I

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Speaker 1: A S or you're selling it direct? Tell us a

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Speaker 1: little bit about what that um slug in that portfolio

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Speaker 1: looks like. So we are absolutely partnering with R A

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Speaker 1: S and with advisers again around the world, whether they're

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Speaker 1: in global banks, private banks, big wire houses, or independence. Uh.

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Speaker 1: And you know, to you to your question about where

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Speaker 1: people are invested now and what they're looking for at

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Speaker 1: the moment, historically you would say, oh, you know, our

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Speaker 1: clients are are really looking at portfolio that's sixty forty

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Speaker 1: something like that the traditional mix. And I would say today,

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Speaker 1: given the search for yield, which is very hard to

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Speaker 1: find everywhere in the world, the need for private credit

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Speaker 1: is greater. Uh, given where market valuations are, private investing

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Speaker 1: is more attractive because you have more control over the asset,

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Speaker 1: you're not subject to the whims, and we're not investing

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Speaker 1: in the market per se. We're choosing the neighborhoods we

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Speaker 1: want to be in. So you know, I'm fortunate in

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Speaker 1: that the performance of Blackstone funds across all the alternative

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Speaker 1: asset classes has been good over a long period of time,

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Speaker 1: So we have a lot of material to work with,

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Speaker 1: and then we meet the individual needs. So it could

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Speaker 1: be that your client, as an advisor, you know, want

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Speaker 1: to put of her or his assets into alternatives and

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Speaker 1: they want a diversified portfolio. We have a product that

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Speaker 1: matches that. Or they're earning you know, x percent three

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Speaker 1: on the municipal Bomb portfolio. And we have other funds

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Speaker 1: in real estate and credit that can return much more

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Speaker 1: that are also floating rate, which gives them better inflation protection.

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Speaker 1: So some of what you're doing is a non correlated

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Speaker 1: substitute for traditional equity, Hey, equity prices are let's call

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Speaker 1: it fully valued. Some people think it's gone beyond that um,

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Speaker 1: although we seem to be having delightful earnings this quarter,

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Speaker 1: so maybe this market can grow into its valuation. But

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Speaker 1: that's one alternative. You reference yield and and what what

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Speaker 1: investors are looking for. If someone says, hey, I want

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Speaker 1: a higher return, I'm willing to take a little more risk,

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Speaker 1: but not I don't want to run into the same

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Speaker 1: problem we run into with subprime What sort of products

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Speaker 1: do you have for I'm gonna ap peel some of

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Speaker 1: my forty off to to something that is going to

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Speaker 1: do better than one point two percent that I'm getting

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Speaker 1: on on my treasuries? What do those fixed income like

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Speaker 1: products look like? Are they structured notes? Are they real estate?

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Speaker 1: Tell us a little bit about that, sure. Uh so.

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Speaker 1: For example, one fund right now that has a lot

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Speaker 1: of traction is our non traded read, which invests in

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Speaker 1: high quality US real estate. Again, the same themes that

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Speaker 1: we're investing in for the institutional fund and the same team. Importantly,

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Speaker 1: so areas like multi family housing where there's a supply

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Speaker 1: demand mismatch or logistics playing on a very long term

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Speaker 1: theme around e commerce, which is only accelerated during COVID.

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Speaker 1: Tell us a little bit about the credit side you mentioned. So,

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Speaker 1: there's a secular trend in private credit that really started

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Speaker 1: in the financial crisis where banks no longer wanted to

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Speaker 1: hold onto risk and we're syndicating out. And it also

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Speaker 1: at that time became clear that they were less willing

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Speaker 1: to lend to middle market companies. So originally what began

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Speaker 1: as a middle market industry in private credit emerged, and

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Speaker 1: we were certainly one of the leaders in that. But

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Speaker 1: I would say today, because of the scale that we have,

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Speaker 1: we're actually able to lend to much larger companies. So

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Speaker 1: it's an industry that has real secular tail winds in

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Speaker 1: terms of the demand for private credit, and we're able

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Speaker 1: to deal with you know, large companies, complex transactions, unitron

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Speaker 1: to take the whole deal, uh, And we've been able

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Speaker 1: to create funds around that for individuals that deliver good returns.

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Speaker 1: And importantly, we've been able to create structures that also

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Speaker 1: work outside of the US. And so both of these areas,

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Speaker 1: whether it's private real estate or private credit, have appeal

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Speaker 1: right now in the US, in Europe, in Latin America

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Speaker 1: in Asia. Uh. And you know we're able to service

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Speaker 1: those folks because our businesses of scale on the private

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Speaker 1: wealth side and also of scale in terms of how

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Speaker 1: much we can invest. That's quite quite intriguing. Let's talk

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Speaker 1: a little bit about E. S. G. Blackstone has said,

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Speaker 1: as the world's largest alternative asset manager, we are uniquely

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Speaker 1: positioned to make a positive impact through our investments. Tell

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Speaker 1: us a little bit about how you approach environmental, social,

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Speaker 1: and governance impact investing. So we've really taken a holistic approach,

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Speaker 1: both for our own company as well as the companies

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Speaker 1: that we own inside our various funds. And to start

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Speaker 1: with the environmental even going back, you know, many years now,

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Speaker 1: we looked at efficiency around energy and water, etcetera. So

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Speaker 1: for example, if you own hotels, thinking about what kind

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Speaker 1: of light bulbs, where do you set the temperature? Things

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Speaker 1: of that nature. Flushers on toilet's probably a little less sexy,

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Speaker 1: but actually important. And today we've made a commitment that

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Speaker 1: for any property or a company that we control, we

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Speaker 1: will reduce emissions by at least fifteen percent um. You know,

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Speaker 1: we we I don't know if you know, in one

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Speaker 1: of the folios we actually own uh Sty Town here

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Speaker 1: in New York, and we created the largest solar farm

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Speaker 1: on any multi family housing development in the US. There,

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Speaker 1: that's one example, uh And I would say around the

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Speaker 1: other areas when it comes to UM governance, and by

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Speaker 1: that I assume you mean diversity on board director C

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Speaker 1: we have likewise a commitment there for at least thirty

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Speaker 1: percent representation by women underrepresented groups, and again for our

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Speaker 1: own company as well as for our portfolio companies. So

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Speaker 1: let's talk a little bit about PWS as it's called. Internally.

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Speaker 1: Your group runs over a hundred billion dollars. Tell us

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Speaker 1: about some of the attractive places that you're deploying capital today. Sure,

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Speaker 1: so we tend to be very thematic at Blackstones. A

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Speaker 1: lot of research comes into play upfront. We figure out

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Speaker 1: where we have the most conviction, and then we're not

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Speaker 1: afraid to go all in. And importantly, if you think

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Speaker 1: about investing as pattern recognition, and you think about everything

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Speaker 1: we own real estate companies, all different types all over

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Speaker 1: the world. It's just a lot of information flow that

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Speaker 1: comes into play. So today areas off of themes, like

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Speaker 1: you know, the digitization of everything. So if you think

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Speaker 1: about our investment in Bumble or Ancestry was on that

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Speaker 1: in e commerce. This has been a long running theme

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Speaker 1: through the firm over the last ten years. So that

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Speaker 1: informs not just what you invest in, but what you avoid.

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Speaker 1: So we we have not been investing in closed malls,

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Speaker 1: but we have been buying up warehouse assets, especially first

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Speaker 1: mile those that are closest to clients. Again, everywhere around

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Speaker 1: the world housing there's a housing shortage, uh really in

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Speaker 1: a lot of different regions, and and what just meaning

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Speaker 1: that there hasn't been enough supply. And when you think

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Speaker 1: about all of the delays caused by shutdowns due to COVID,

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Speaker 1: it's just exasperated those or exaggerated those trends even more so.

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Speaker 1: And um, when you have supply demand and balances, that's

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Speaker 1: usually pretty good for appreciation. We coming through the financial crisis,

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Speaker 1: had created the largest single family housing you know, owned

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Speaker 1: to rent company, and we're continuing to invest in those

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Speaker 1: types of assets. We really like life sciences. You mentioned uncorrelated.

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Speaker 1: That's an area that is uncorrelated, and we partner with

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Speaker 1: major pharmaceutical companies. We invest in their Phase three trials

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Speaker 1: which have very good high percentage UH chance of success.

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Speaker 1: Cloud computing, and there's a lot of different neighborhoods that

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Speaker 1: we like. And then I would say, also we like

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Speaker 1: the industries that serve those. So once we find a

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Speaker 1: theme something like life sciences, were also then interested in

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Speaker 1: owning the real estate that's catering to life sciences companies.

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Speaker 1: So the intellectual capital really moves through the firm, and

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Speaker 1: we're able to whether it's growth equity, private equity, real estate,

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Speaker 1: life sciences credit, run that all the way through. And

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Speaker 1: so you would find over the firm's history and continuing today,

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Speaker 1: our various different businesses may invest in a different part

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Speaker 1: of the capital structure. Uh, they may invest in different companies,

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Speaker 1: but they're all focused on this idea of good neighborhoods. Huh.

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Speaker 1: So that that's very intriguing. I always have a hard

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Speaker 1: time drawing a bright line between what sounds a lot

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Speaker 1: like private equity but looks a little bit like late

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Speaker 1: stage venture capital. I hear cloud and life sciences and

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Speaker 1: bumble and ancestry dot com. How does that distinction make

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Speaker 1: any difference to you, guys? Is it really just an

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Speaker 1: academic distinction or clearly you're not doing seed investing. We

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Speaker 1: understand that, but what is the difference between black Stone

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Speaker 1: private equity and very late stage venture investing. So, by

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Speaker 1: and large, we have not been venture investors in the

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Speaker 1: way that you're thinking about, in part because the outcomes

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Speaker 1: are binary, and when we're making an investment, we always

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Speaker 1: try to think about protecting on the downside, and that's

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Speaker 1: quite difficult to do in a venture deal. So I'm

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Speaker 1: distinguishing that from growth equity because these are larger companies

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Speaker 1: where the entrepreneur doesn't want to seed control but is

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Speaker 1: attracted to what we can bring in helping her him

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Speaker 1: really scale the business. So again I'll go back to

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Speaker 1: UH company like you know, Bumble or where we made

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Speaker 1: an investment in Totally and what is it we bring.

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Speaker 1: We have this massive portfolio of companies and properties that

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Speaker 1: we can introduce them to. We have a data science

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Speaker 1: team of more than thirty people that we then deploy

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Speaker 1: right onto these companies. We have a suite of highly

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Speaker 1: talented former CEOs executives who partner with UH. Those CEOs,

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Speaker 1: who again are are often entrepreneurs who may have not

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Speaker 1: usually have not taken their company and built it into

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Speaker 1: some major global institutions. So I would distinguish it in

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Speaker 1: a lot of Uh, those aspects were coming in much later.

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Speaker 1: We're not saying this technology works or doesn't. It's already proven,

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Speaker 1: and then we're bringing something to much greater scale. Right.

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Speaker 1: I like the concept of Hey, if it's truly binary,

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Speaker 1: then that's much more like UM venture capital. If there's

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Speaker 1: a range of potential outcomes with a very very low

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Speaker 1: possibility that the whole thing goes to zero, that's more

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Speaker 1: private equity that that. That's a really good framework for

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Speaker 1: that UM. So let's let's stick with you mentioned the

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Speaker 1: intellectual capital that moves around the firm. UM. We're kind

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Speaker 1: of sort of reopening people little nervous around delta UM.

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Speaker 1: How did you guys operate during the pandemic. I assume

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Speaker 1: everyone was working from home, and what are your plans

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Speaker 1: going forward? How are you going to manage? Yeah, it

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Speaker 1: was certainly turbulent times. We acted very quickly. So one

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Speaker 1: thing that UM launched literally the week that we shut

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Speaker 1: down in the US is John Gray, our president and CEO,

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Speaker 1: launched a global call for all employees, which still happens

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Speaker 1: every single week. And during that meeting, we hear about

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Speaker 1: macro government, what's happening in some of the portfolio companies,

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Speaker 1: new investments, and the basic trends. It was also just

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Speaker 1: the best mechanism for everyone at the firm UH to

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Speaker 1: know what was going on, talk about COVID and really

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Speaker 1: around the world, and we do that on Zoom so

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Speaker 1: that you're present. And again this has now been going

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Speaker 1: on since mid March of with my own team, I

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Speaker 1: made great efforts to stay connected. Again, we were all

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Speaker 1: on Zoom, not telephone, so you can actually see people.

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Speaker 1: I personally added many more meetings than I had previously,

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Speaker 1: regularly scheduled meetings with my sub teams, with the leaders

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Speaker 1: of my business to make sure we were connected. And

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Speaker 1: we also added in a lot of virtual events, you know,

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Speaker 1: whether they were virtual cocktail hours or lunches or breakfast

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Speaker 1: we did hold. I my my children make fun of

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Speaker 1: me because I did the same cooking class like five

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Speaker 1: different times, so I can now make an excellent you know,

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Speaker 1: pasta sauce um. But I think it was important not

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Speaker 1: just to get the business done, to prosecute the business,

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Speaker 1: of course, that's important, and serve your clients, but equally

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Speaker 1: important was to keep the team together, have everyone with

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Speaker 1: full information feel connected, even though we weren't physically in

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Speaker 1: the same place, and then I didn't mention, but as

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Speaker 1: importantly was staying connected with our clients, and so we

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Speaker 1: immediately launched webinars conference calls about what we were seeing

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Speaker 1: from a macro level in our portfolio. Companies very transparent

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Speaker 1: about what was happening in the funds and just providing

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Speaker 1: advisors and clients with the most up to date information

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Speaker 1: that we had, and I think they appreciated that. Huh.

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Speaker 1: Quite quite interesting. So so within financial services, people like

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Speaker 1: Jamie Diamond at JP Morgan Chase Morgan, Stanley Goldman, Sachs

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Speaker 1: a roll calling staff back to work. Other places are

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Speaker 1: talking about a hybrid all going forward. You're in a

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Speaker 1: couple of days a week, but it's not Monday to

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Speaker 1: Friday nine to five. Have you, guys thought about what

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Speaker 1: you want to do and have have you come out

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Speaker 1: with any decision yet publicly? Yes, So we have. The

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Speaker 1: investing teams have by and large been back full time

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Speaker 1: now for several months. For my team, I said we

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Speaker 1: would remain flexible through the summer and then we'll figure

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Speaker 1: out the cadence. But the vast majority of my team

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Speaker 1: comes in and there were several employees not surprisingly who

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Speaker 1: were quite nervous. But the firm invested a lot uh

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Speaker 1: in terms of creating our own testing mandatory testing, distancing

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Speaker 1: tracing app that we have to keep open at all

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Speaker 1: times to make people feel safe in the environment that

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Speaker 1: we were in. A number a number of big firms

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Speaker 1: are mandating vaccines? Did you guys go that far? Also?

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Speaker 1: It makes perfect sense to me, but I know you

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Speaker 1: can get pushed back from some quarters. So just this

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Speaker 1: week we told employees that if they're not vaccinated, they

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Speaker 1: shouldn't come to the office, and if you're not in

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Speaker 1: the office, your career is probably not fast track. I

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Speaker 1: hope that everyone will decide to take the vaccine just

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Speaker 1: for their own health. We have not said you can't

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Speaker 1: work at the firm um, but I think it's it's

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Speaker 1: in the interim. You can certainly do whatever you're doing remotely,

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Speaker 1: but you just you lose the connectivity. And to me,

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Speaker 1: what you know, one of the great parts of my

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Speaker 1: job is actually being with the team, interacting, exchanging ideas.

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Speaker 1: I think that's much harder to do when your box

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Speaker 1: on someone's computer. So you referenced earlier the impact of

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Speaker 1: low rates where clients were previously allocating money to the

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Speaker 1: bond portion of a sixty forty portfolio. How are low

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Speaker 1: rates impacting everything today and what is black Stone doing

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Speaker 1: about it? So I think about the impact of low

431
00:31:23,000 --> 00:31:28,160
Speaker 1: interest rates from two perspectives. One is how does it

432
00:31:28,280 --> 00:31:33,360
Speaker 1: affect an investor, an individual investor or an institutional investor,

433
00:31:33,960 --> 00:31:40,440
Speaker 1: and how does it affect Blackstone investing in companies and properties.

434
00:31:40,840 --> 00:31:44,720
Speaker 1: So on the former, it is much harder to reach

435
00:31:44,840 --> 00:31:49,920
Speaker 1: your goals, whether their retirement or sending your kids to college,

436
00:31:50,040 --> 00:31:53,360
Speaker 1: or even just saving for the next few years at home, whatever.

437
00:31:54,040 --> 00:31:56,920
Speaker 1: If interest rates are very low, you're earning nothing on

438
00:31:57,000 --> 00:32:00,360
Speaker 1: your bank account, You're earning very little from your simple

439
00:32:00,400 --> 00:32:05,400
Speaker 1: bond portfolio, etcetera. So how do you create more wealth?

440
00:32:06,360 --> 00:32:13,280
Speaker 1: And for that, individuals institutions have been seeking yield in

441
00:32:14,080 --> 00:32:17,400
Speaker 1: private credit, private real estate, as we mentioned, where you

442
00:32:17,400 --> 00:32:20,200
Speaker 1: could just get better returns where you can apply a

443
00:32:20,200 --> 00:32:23,600
Speaker 1: bit of leverage, but you don't have to extend all

444
00:32:23,640 --> 00:32:27,320
Speaker 1: the way out on the risk curve. To do that,

445
00:32:27,360 --> 00:32:30,920
Speaker 1: you don't have to be in highly levered funds, you

446
00:32:30,960 --> 00:32:35,560
Speaker 1: don't have to be in the riskiest assets. And I'm

447
00:32:35,600 --> 00:32:39,280
Speaker 1: often asked like, do you like non traded reads? Do

448
00:32:39,320 --> 00:32:43,240
Speaker 1: you like private credit, and I always say it's it's

449
00:32:43,280 --> 00:32:47,400
Speaker 1: for me. It's really not the fund structure as much

450
00:32:47,400 --> 00:32:51,360
Speaker 1: as it is who is the investor putting the assets in.

451
00:32:51,640 --> 00:32:55,000
Speaker 1: I mean, there's certainly not all created equally. So you

452
00:32:55,040 --> 00:32:59,600
Speaker 1: want to be with a very high quality GP like

453
00:32:59,720 --> 00:33:03,360
Speaker 1: black Stone if you will, But you want to, you know,

454
00:33:03,400 --> 00:33:06,560
Speaker 1: really think about who you're entrusting your wealth or your

455
00:33:06,600 --> 00:33:11,280
Speaker 1: client's wealth with. As it relates to Blackstone. On the

456
00:33:11,360 --> 00:33:15,640
Speaker 1: investing side, I'll put credit aside for the moment. That

457
00:33:15,680 --> 00:33:21,080
Speaker 1: means that you can borrow at much better rates um

458
00:33:21,280 --> 00:33:25,480
Speaker 1: and you know that certainly helps the return. But I

459
00:33:25,520 --> 00:33:30,960
Speaker 1: would say, really importantly, we always think about when we're underwriting,

460
00:33:31,240 --> 00:33:34,800
Speaker 1: what will the next buyer have to borrow at to

461
00:33:34,960 --> 00:33:38,880
Speaker 1: make it work. You don't want to get lulled into

462
00:33:39,200 --> 00:33:42,640
Speaker 1: this false sense of complacency where you're like, oh, I

463
00:33:42,680 --> 00:33:46,840
Speaker 1: could borrow for nothing and therefore, wow, this looks really attractive. Uh.

464
00:33:46,960 --> 00:33:49,880
Speaker 1: Kind of similar to what happened to people when you

465
00:33:49,920 --> 00:33:53,080
Speaker 1: think about, you know, the housing crisis, where they were

466
00:33:53,120 --> 00:33:55,920
Speaker 1: just taking on way too much debt. So you know,

467
00:33:56,040 --> 00:33:59,360
Speaker 1: it's it's that toggle between yes, we can borrow at

468
00:33:59,440 --> 00:34:02,840
Speaker 1: very attract to rates but that doesn't mean that we

469
00:34:02,920 --> 00:34:06,320
Speaker 1: want to inflate the price of the assets that we're buying.

470
00:34:06,400 --> 00:34:09,440
Speaker 1: So it's it's really quite a balance, so not the

471
00:34:09,560 --> 00:34:13,840
Speaker 1: greater fool approach to investing it. You're looking for a

472
00:34:14,040 --> 00:34:18,520
Speaker 1: long time. So you mentioned equity richly valued and bond

473
00:34:18,600 --> 00:34:23,080
Speaker 1: rates at long time uh lows. When we look at

474
00:34:23,120 --> 00:34:27,279
Speaker 1: both asset classes, there each at all time highs. The

475
00:34:27,320 --> 00:34:30,759
Speaker 1: one exception seems to be commercial real estate is in

476
00:34:30,840 --> 00:34:35,680
Speaker 1: fact still at levels UM that are far below where

477
00:34:35,680 --> 00:34:40,560
Speaker 1: we were during the pandemic. How attractive is commercial real estate?

478
00:34:40,600 --> 00:34:45,280
Speaker 1: And we know Blackstone is a big investor in UM

479
00:34:45,360 --> 00:34:51,440
Speaker 1: individual homes, rent to own, etcetera. What about traditional commercial

480
00:34:51,480 --> 00:34:55,560
Speaker 1: real estate? So there too, you have to divide it

481
00:34:55,680 --> 00:35:01,239
Speaker 1: into sectors. So if you're talking about offices or example

482
00:35:02,239 --> 00:35:05,160
Speaker 1: today you would say, wow, like how could you invest

483
00:35:05,440 --> 00:35:09,120
Speaker 1: in offices Actually not a big part of our portfolio,

484
00:35:09,200 --> 00:35:12,440
Speaker 1: but with a pandemic and people working from home, and

485
00:35:12,560 --> 00:35:16,120
Speaker 1: I would say you have to distinguish where you're investing

486
00:35:16,360 --> 00:35:20,640
Speaker 1: and the type of offices. So on the lending side

487
00:35:20,719 --> 00:35:23,120
Speaker 1: in real estate for us, you know we think about

488
00:35:23,520 --> 00:35:26,520
Speaker 1: are these high end offices that are open plan that

489
00:35:26,600 --> 00:35:31,160
Speaker 1: have a lot of amenities for tenants, those would be attractive.

490
00:35:31,640 --> 00:35:37,680
Speaker 1: We look at office space for life sciences companies, UH,

491
00:35:37,760 --> 00:35:41,759
Speaker 1: for production studios because one of the big themes for

492
00:35:41,920 --> 00:35:46,200
Speaker 1: us is live streaming and how that's increasing. We look

493
00:35:46,239 --> 00:35:51,520
Speaker 1: at where regionally we're investing. So if you use data

494
00:35:52,280 --> 00:35:57,799
Speaker 1: and see you know where in which areas are the

495
00:35:57,840 --> 00:36:01,319
Speaker 1: greatest number of ads for were jobs? Where are young

496
00:36:01,480 --> 00:36:05,240
Speaker 1: people going? You can get a feel for housing trends,

497
00:36:05,400 --> 00:36:10,840
Speaker 1: office trends, and very importantly in real estate, because buildings

498
00:36:10,880 --> 00:36:13,160
Speaker 1: don't just pop out of the ground, you know what

499
00:36:13,320 --> 00:36:16,640
Speaker 1: supply is, and so you're always looking for supplied demand

500
00:36:16,840 --> 00:36:23,359
Speaker 1: imbalance and UH, we typically don't invest in new construction,

501
00:36:23,880 --> 00:36:26,920
Speaker 1: and so we want to buy at a discount to

502
00:36:27,440 --> 00:36:32,040
Speaker 1: replacement value. And that's really the formula. It sounds simplistic,

503
00:36:32,239 --> 00:36:36,640
Speaker 1: but it's supplied demand discount to replacement value. That is

504
00:36:36,680 --> 00:36:40,440
Speaker 1: the mantra that Blackstone has stuck to everywhere in the

505
00:36:40,440 --> 00:36:44,239
Speaker 1: world since the early nineties. So I'm hearing two things.

506
00:36:44,320 --> 00:36:47,440
Speaker 1: I'm hearing data matters, and what you pay for an

507
00:36:47,440 --> 00:36:51,160
Speaker 1: investable asset is important. Yes, all right, that that makes

508
00:36:51,160 --> 00:36:53,520
Speaker 1: a lot of sense to me. Uh, tell us what

509
00:36:53,600 --> 00:36:57,239
Speaker 1: your clients are asking about today that you guys are

510
00:36:57,320 --> 00:37:01,560
Speaker 1: not currently doing. What what's the next thing out there

511
00:37:02,719 --> 00:37:09,080
Speaker 1: that's interesting. We typically when we venture into a new area, Uh,

512
00:37:09,120 --> 00:37:14,160
Speaker 1: it's because we see an interesting investment opportunity, So we

513
00:37:14,200 --> 00:37:16,600
Speaker 1: never think about it in terms of how much money

514
00:37:16,640 --> 00:37:20,040
Speaker 1: can we raise. It's always how much money can we deploy.

515
00:37:20,239 --> 00:37:24,800
Speaker 1: But to your question, increasingly investors are asking us about

516
00:37:24,920 --> 00:37:30,640
Speaker 1: E s G investing, and Uh, it started more so

517
00:37:30,800 --> 00:37:34,680
Speaker 1: outside of the US, in Europe in particular, but I

518
00:37:34,719 --> 00:37:40,120
Speaker 1: am increasingly asked about it in the US. And E

519
00:37:40,400 --> 00:37:43,120
Speaker 1: s G is something that's infused in all of our

520
00:37:43,719 --> 00:37:48,160
Speaker 1: funds and investments. It's not something that to date we've

521
00:37:48,200 --> 00:37:52,040
Speaker 1: really carved out as a product, but it's certainly something

522
00:37:52,080 --> 00:37:55,719
Speaker 1: we're thinking about. So that's kind of interesting because the

523
00:37:55,840 --> 00:37:58,840
Speaker 1: criticism has been E s G captures a huge amount

524
00:37:58,880 --> 00:38:01,480
Speaker 1: of mind share, but only near as much capital as

525
00:38:01,480 --> 00:38:05,840
Speaker 1: you would imagine. And when we do surveys of who's

526
00:38:05,840 --> 00:38:09,800
Speaker 1: going to inherit the baby boomers money, it's invariably women

527
00:38:10,000 --> 00:38:14,319
Speaker 1: and younger people, and they're both much more enthusiastic about

528
00:38:14,360 --> 00:38:17,680
Speaker 1: E s G than the average investor. Is this something

529
00:38:17,719 --> 00:38:20,880
Speaker 1: that you're really seeing start to change or is that

530
00:38:21,040 --> 00:38:25,239
Speaker 1: change still out there. So there are different elements to it.

531
00:38:25,360 --> 00:38:29,520
Speaker 1: One is that people are mindful of E s G,

532
00:38:29,719 --> 00:38:33,680
Speaker 1: but they don't want to sacrifice on returns. So when

533
00:38:33,719 --> 00:38:38,480
Speaker 1: you talk to foundations and endowments for example, very mindful

534
00:38:38,520 --> 00:38:42,279
Speaker 1: of E s G, but the responses usually that's why

535
00:38:42,280 --> 00:38:45,239
Speaker 1: we want to generate the greatest returns on the portfolio,

536
00:38:45,440 --> 00:38:48,319
Speaker 1: so that we can then distribute the money, you know,

537
00:38:48,400 --> 00:38:51,399
Speaker 1: to those causes. And when it comes to individuals, by

538
00:38:51,400 --> 00:38:57,439
Speaker 1: and large, it's the same. They want to support these

539
00:38:57,480 --> 00:39:00,719
Speaker 1: are topics that are important, but they don't want to

540
00:39:01,480 --> 00:39:06,879
Speaker 1: really detract tremendously from returns. I don't imagine Blackstone will

541
00:39:06,960 --> 00:39:11,319
Speaker 1: ever create a copycat or me too product Um. We

542
00:39:11,440 --> 00:39:13,920
Speaker 1: spend quite a lot of time at the front end

543
00:39:14,000 --> 00:39:17,040
Speaker 1: thinking about what we'll go into any of our funds.

544
00:39:17,040 --> 00:39:20,360
Speaker 1: So I think when we do launch something, uh, it

545
00:39:20,440 --> 00:39:25,040
Speaker 1: will be unique in the market. Interesting. So some people

546
00:39:25,080 --> 00:39:28,920
Speaker 1: are quite worried about valuations, not just in the public market,

547
00:39:29,000 --> 00:39:32,240
Speaker 1: but there's so much capital slashing around and it's found

548
00:39:32,239 --> 00:39:35,480
Speaker 1: its way into the private markets. How concerned are you

549
00:39:35,560 --> 00:39:39,200
Speaker 1: about valuations and and what sort of advice do you

550
00:39:39,239 --> 00:39:43,960
Speaker 1: have for investors about that? So I am a warrior

551
00:39:44,080 --> 00:39:48,600
Speaker 1: by nature, and I worry when valuations are high. I

552
00:39:48,680 --> 00:39:53,120
Speaker 1: worry when they're low. And in my fourteen years at Blackstone,

553
00:39:53,160 --> 00:39:58,120
Speaker 1: I don't think that I've really sat through a meeting

554
00:39:58,280 --> 00:40:02,880
Speaker 1: where anyone thought the kind of investing we do is easy.

555
00:40:02,960 --> 00:40:08,560
Speaker 1: There are always challenges, uh, and either you know, prices

556
00:40:08,600 --> 00:40:12,080
Speaker 1: are low but no one's selling, or prices are too high.

557
00:40:12,400 --> 00:40:15,720
Speaker 1: I think the key is not to buy a market

558
00:40:16,560 --> 00:40:20,799
Speaker 1: and to focus on the sectors that you like, the

559
00:40:20,880 --> 00:40:24,040
Speaker 1: companies where you think you can affect change. And this

560
00:40:24,160 --> 00:40:27,759
Speaker 1: is a key in private markets versus public So we

561
00:40:27,840 --> 00:40:32,240
Speaker 1: sign non disclosure agreements, we get inside information if you will,

562
00:40:32,600 --> 00:40:34,759
Speaker 1: we have six months or whatever the time period is

563
00:40:34,800 --> 00:40:38,640
Speaker 1: to do full due diligence. We have our portfolio operations

564
00:40:38,680 --> 00:40:41,960
Speaker 1: team all over the company figuring out where we can

565
00:40:42,000 --> 00:40:44,960
Speaker 1: make improvements. And you know, when in the old days,

566
00:40:45,040 --> 00:40:48,080
Speaker 1: when those were industrial companies, was more about cost cutting.

567
00:40:48,120 --> 00:40:51,840
Speaker 1: Today it's much more about leaning in on growth, connecting

568
00:40:51,840 --> 00:40:58,040
Speaker 1: our portfolio companies to one another, making them more tech enable, etcetera.

569
00:40:58,280 --> 00:41:01,840
Speaker 1: And that's really the of formula. You know, it's taking

570
00:41:01,840 --> 00:41:06,799
Speaker 1: the company or the asset and applying either capital or

571
00:41:06,920 --> 00:41:11,080
Speaker 1: talent to it. Rather than relying on on the market.

572
00:41:11,120 --> 00:41:13,480
Speaker 1: If all you're doing is paying more than anyone else,

573
00:41:14,520 --> 00:41:16,800
Speaker 1: that's a hard way to make money. To say the least.

574
00:41:17,000 --> 00:41:20,480
Speaker 1: You mentioned fourteen years at black Stone. I remember the

575
00:41:20,480 --> 00:41:24,200
Speaker 1: Blackstone I p O and I'm the pandemic has completely

576
00:41:24,280 --> 00:41:27,080
Speaker 1: ruined my sense of time, because I never would have

577
00:41:27,120 --> 00:41:29,800
Speaker 1: guessed that was fourteen years, but that was two thousand

578
00:41:29,800 --> 00:41:33,360
Speaker 1: and five. That's a long long It seems like a

579
00:41:33,400 --> 00:41:35,840
Speaker 1: long time ago. Um. One of the things I wanted

580
00:41:35,840 --> 00:41:38,600
Speaker 1: to ask that I didn't get to before was the

581
00:41:38,680 --> 00:41:42,880
Speaker 1: liquidly or illiquidly premium. When someone puts money in a

582
00:41:42,960 --> 00:41:47,760
Speaker 1: black Stone funds, my assumption is they don't have access

583
00:41:47,840 --> 00:41:51,440
Speaker 1: to that the way they would a regular publicly traded

584
00:41:51,480 --> 00:41:55,320
Speaker 1: stock for an extended period of time. What's the typical

585
00:41:56,080 --> 00:41:59,360
Speaker 1: lock up without penalty like for for your funds? And

586
00:41:59,600 --> 00:42:02,600
Speaker 1: I'm also assume there's a wide range and there is

587
00:42:02,640 --> 00:42:06,000
Speaker 1: no one number. So for the typical private equity or

588
00:42:06,040 --> 00:42:10,600
Speaker 1: private real estate fund, uh, those are only accessible to

589
00:42:11,040 --> 00:42:16,480
Speaker 1: qualified purchasers or institutional investors, and you're locked up for

590
00:42:16,480 --> 00:42:19,800
Speaker 1: the life of the fund very deliberately, which is seven

591
00:42:19,880 --> 00:42:24,279
Speaker 1: years typically or so. It's usually a ten year fund

592
00:42:24,800 --> 00:42:31,240
Speaker 1: varies a little bit, but you control the timing going

593
00:42:31,360 --> 00:42:36,240
Speaker 1: in and you control the exit. So you never want

594
00:42:36,320 --> 00:42:39,920
Speaker 1: to be in a position where you're forced to invest

595
00:42:40,040 --> 00:42:43,640
Speaker 1: quickly or you're ever forced to sell. So there is

596
00:42:43,680 --> 00:42:47,960
Speaker 1: no early redemption. The redemption happens as you start selling

597
00:42:48,000 --> 00:42:52,960
Speaker 1: down companies or assets in that portfolio. Makes a lot

598
00:42:53,000 --> 00:42:57,479
Speaker 1: of sense. So I want to circle back to your

599
00:42:57,520 --> 00:43:00,399
Speaker 1: You mentioned you're a warrior. Everybody I know who worked

600
00:43:00,400 --> 00:43:03,080
Speaker 1: in equity research is a giant warrior. They're like, what

601
00:43:03,160 --> 00:43:07,680
Speaker 1: did I miss? What's gonna ruin my investment thesis? How

602
00:43:07,760 --> 00:43:11,400
Speaker 1: has the world of equity research changed from your perspective?

603
00:43:11,520 --> 00:43:13,480
Speaker 1: You got to see it from the public side, from

604
00:43:13,480 --> 00:43:16,480
Speaker 1: the private side, and over a couple of decades of investing,

605
00:43:16,640 --> 00:43:20,640
Speaker 1: tell us a little bit about how research has changed. Yeah,

606
00:43:20,680 --> 00:43:25,719
Speaker 1: it really has evolved. So in my earliest days, it was,

607
00:43:26,480 --> 00:43:30,320
Speaker 1: first of all, we didn't even have excel um and

608
00:43:30,920 --> 00:43:33,680
Speaker 1: there was, you know, no way to reach clients other

609
00:43:33,719 --> 00:43:36,160
Speaker 1: than meeting with them or or calling them or companies

610
00:43:36,200 --> 00:43:42,080
Speaker 1: for that matter. Um And but you were really an advisor,

611
00:43:42,120 --> 00:43:46,080
Speaker 1: not just two investors, but also to the companies that

612
00:43:46,120 --> 00:43:49,760
Speaker 1: you covered, and that endured, Uh, most of my tenure.

613
00:43:49,800 --> 00:43:52,680
Speaker 1: It was what I enjoyed the most, getting to know

614
00:43:52,760 --> 00:43:56,759
Speaker 1: the management teams, understanding their strategies, working on you know,

615
00:43:56,800 --> 00:44:02,680
Speaker 1: I worked on dozens of I P those UH secondary offerings,

616
00:44:02,920 --> 00:44:06,839
Speaker 1: M and A transactions and there was nothing nefarious about it.

617
00:44:06,960 --> 00:44:10,319
Speaker 1: I worked closely with the investment bankers to really help

618
00:44:10,360 --> 00:44:14,399
Speaker 1: the companies figure out their strategy. That all changed, if

619
00:44:14,440 --> 00:44:18,440
Speaker 1: you remember, UH Elliot Spitzer came in looked at research.

620
00:44:18,560 --> 00:44:22,520
Speaker 1: This was during the tech bubble and found that there

621
00:44:22,560 --> 00:44:28,279
Speaker 1: were conflicts of interest UH that maybe investors didn't know about,

622
00:44:28,320 --> 00:44:34,239
Speaker 1: maybe they did, but really hived off equity research from

623
00:44:34,280 --> 00:44:38,839
Speaker 1: every other part of the business. And in many ways,

624
00:44:39,080 --> 00:44:46,279
Speaker 1: I think it diminished um the value of the equity analysts.

625
00:44:46,440 --> 00:44:48,920
Speaker 1: And you know, by and large, who's folks who had

626
00:44:49,000 --> 00:44:52,000
Speaker 1: studied really probably knew these industries better than many of

627
00:44:52,040 --> 00:44:54,800
Speaker 1: the management teams, if you will, working in them, because

628
00:44:54,840 --> 00:44:57,640
Speaker 1: they had such a good feel for the competitive landscape

629
00:44:57,880 --> 00:45:02,359
Speaker 1: as well. And at the same time, you had the

630
00:45:02,440 --> 00:45:07,239
Speaker 1: proliferation of the hedge fund industry, so a lot of

631
00:45:07,320 --> 00:45:10,800
Speaker 1: research analysts went to the buy side, left the cell side.

632
00:45:12,000 --> 00:45:18,319
Speaker 1: You've had compression of commissions, etcetera, making cash equities a

633
00:45:18,400 --> 00:45:23,040
Speaker 1: less profitable business that it once was. And so, uh,

634
00:45:23,120 --> 00:45:28,279
Speaker 1: while I still know very many talented research analysts, I

635
00:45:28,280 --> 00:45:32,160
Speaker 1: think it's unfortunate that what they're doing has been so restricted.

636
00:45:33,080 --> 00:45:36,120
Speaker 1: Makes a lot of sense. What about social media has

637
00:45:36,200 --> 00:45:41,560
Speaker 1: that disrupted cell side research? That is a good question.

638
00:45:42,440 --> 00:45:46,080
Speaker 1: I don't know that social media has disrupted as much

639
00:45:46,120 --> 00:45:52,439
Speaker 1: as information comes generally much more quickly than it ever did,

640
00:45:52,680 --> 00:45:58,080
Speaker 1: and the expectation to have an immediate response. You know,

641
00:45:58,120 --> 00:46:00,200
Speaker 1: when I go back in time where you really really

642
00:46:00,600 --> 00:46:05,560
Speaker 1: had the time to think through and crunch numbers and

643
00:46:06,080 --> 00:46:09,680
Speaker 1: you know, form of an opinion. Today it's much harder,

644
00:46:10,280 --> 00:46:12,880
Speaker 1: and like you know, with social media, to to your point,

645
00:46:12,960 --> 00:46:16,279
Speaker 1: everyone's out there with a view, with an opinion. It

646
00:46:16,440 --> 00:46:19,440
Speaker 1: probably does make it much more challenging. So let me

647
00:46:19,480 --> 00:46:21,759
Speaker 1: switch up gears on you a little bit. I want

648
00:46:21,800 --> 00:46:27,359
Speaker 1: to ask you about uh black Stone Woman's Initiative, which

649
00:46:27,400 --> 00:46:31,160
Speaker 1: I know you're involved with. Tell us about that. So

650
00:46:31,320 --> 00:46:36,799
Speaker 1: I was involved in the formation of it, and at

651
00:46:36,840 --> 00:46:40,439
Speaker 1: the time that I joined black Stone, only about ten

652
00:46:40,560 --> 00:46:47,480
Speaker 1: percent of the analysts, applications applicants were female, and about

653
00:46:48,520 --> 00:46:52,600
Speaker 1: of the class was female, and so I was really

654
00:46:52,640 --> 00:46:58,040
Speaker 1: interested in how we can improve that. Uh, there was

655
00:46:58,080 --> 00:47:02,800
Speaker 1: a perception that somehow, how private Equity Alternatives is in

656
00:47:02,920 --> 00:47:08,880
Speaker 1: a great career for women. Not true, and so um,

657
00:47:08,920 --> 00:47:10,680
Speaker 1: you know, I was trying to figure out what what

658
00:47:10,760 --> 00:47:14,440
Speaker 1: we could do. So at the beginning, we really focused

659
00:47:14,560 --> 00:47:20,080
Speaker 1: on educating young women, sophomores, juniors in college, inviting them in,

660
00:47:20,880 --> 00:47:23,799
Speaker 1: teaching them you know what you need to know, uh,

661
00:47:23,960 --> 00:47:27,400
Speaker 1: figuring out, you know, why they weren't applying, why we

662
00:47:27,400 --> 00:47:31,279
Speaker 1: weren't hiring more, and going to those solutions. Today it's

663
00:47:31,480 --> 00:47:34,920
Speaker 1: light years ahead of that. You know, between forty and

664
00:47:34,960 --> 00:47:38,480
Speaker 1: fifty percent of our classes female now. Yeah, so big

665
00:47:38,520 --> 00:47:44,360
Speaker 1: improvement there, and a lot of focus on professional development

666
00:47:44,480 --> 00:47:49,200
Speaker 1: and networking and really trying to find common derailers for

667
00:47:49,239 --> 00:47:52,960
Speaker 1: women and addressing those. So there's a quote of yours

668
00:47:53,000 --> 00:47:56,840
Speaker 1: that I very much like because it's a philosophy that

669
00:47:57,280 --> 00:47:59,880
Speaker 1: could apply to a lot of different people. But I

670
00:48:00,200 --> 00:48:05,800
Speaker 1: like quote, get comfortable being uncomfortable. Explain what that means.

671
00:48:06,680 --> 00:48:14,520
Speaker 1: It means that many women, especially young women, are comfortable

672
00:48:14,600 --> 00:48:20,279
Speaker 1: doing the things that they know well. And unless you're

673
00:48:20,320 --> 00:48:25,239
Speaker 1: willing to stretch, you're just never going to grow in

674
00:48:25,280 --> 00:48:29,040
Speaker 1: your career. You don't have to know it all on

675
00:48:29,400 --> 00:48:33,279
Speaker 1: day one, it's all learnable. You know, nothing that we're

676
00:48:33,280 --> 00:48:36,160
Speaker 1: doing in at least in the roles that I've had,

677
00:48:36,920 --> 00:48:41,040
Speaker 1: is rocket science. So if you apply yourself, if you

678
00:48:41,080 --> 00:48:44,960
Speaker 1: ask questions, if you really want to learn it, you

679
00:48:45,040 --> 00:48:47,520
Speaker 1: can learn it. But you have to be willing to

680
00:48:47,560 --> 00:48:50,400
Speaker 1: push yourself a little bit and know that the first

681
00:48:50,440 --> 00:48:53,040
Speaker 1: time you do anything, whether it's you know, speaking in

682
00:48:53,080 --> 00:48:56,480
Speaker 1: front of a large group or presenting to senior people

683
00:48:56,520 --> 00:48:59,320
Speaker 1: at the firm, whatever it is, it's not going to

684
00:48:59,360 --> 00:49:01,160
Speaker 1: be as good as the hundredth time you do it.

685
00:49:01,280 --> 00:49:05,319
Speaker 1: And that's okay. Is that a gender specific difference? And

686
00:49:05,480 --> 00:49:10,200
Speaker 1: my flavor of sexism is dudes are just reckless and

687
00:49:10,239 --> 00:49:14,000
Speaker 1: we are. They are not smart enough to think I

688
00:49:14,000 --> 00:49:16,080
Speaker 1: don't know anything about this, so I'm just gonna plow

689
00:49:16,080 --> 00:49:19,719
Speaker 1: ahead anyway. I get the sense that women tend to

690
00:49:19,760 --> 00:49:22,640
Speaker 1: be a little more circumspect and thoughtful, or is that

691
00:49:23,400 --> 00:49:27,399
Speaker 1: you know a stereotype and it's not accurate. So there

692
00:49:27,440 --> 00:49:32,399
Speaker 1: have been studies showing that, for example, um, women will

693
00:49:32,480 --> 00:49:36,719
Speaker 1: not raise their hands for the promotion unless they think

694
00:49:36,719 --> 00:49:41,040
Speaker 1: they can tick off every single skill set, where as

695
00:49:41,200 --> 00:49:44,120
Speaker 1: men may have very few of those skills, but they

696
00:49:44,200 --> 00:49:46,800
Speaker 1: raise their hands, say I could do it. So that's

697
00:49:46,880 --> 00:49:52,000
Speaker 1: definitely a gender difference. Hold my beer, that's a that's

698
00:49:52,040 --> 00:49:55,799
Speaker 1: a dude thing. So this leads me right into tell

699
00:49:55,920 --> 00:50:02,200
Speaker 1: us about truth for our daughters. So my daughter, Lindsay

700
00:50:02,239 --> 00:50:07,239
Speaker 1: at the time was a freshman in college. She was

701
00:50:07,480 --> 00:50:11,480
Speaker 1: a math major, so very few women already, you know,

702
00:50:11,560 --> 00:50:15,279
Speaker 1: breaking barriers exactly, and some of her classes, although I

703
00:50:15,320 --> 00:50:17,480
Speaker 1: guess increasingly there are a lot of women majoring in

704
00:50:17,560 --> 00:50:23,160
Speaker 1: math now. And she had applied for leadership program and

705
00:50:23,520 --> 00:50:26,920
Speaker 1: called me in tears and said, I just got called

706
00:50:26,960 --> 00:50:31,439
Speaker 1: for the third round and I'm not qualified. And I said,

707
00:50:31,480 --> 00:50:34,440
Speaker 1: you're a freshman in college. What qualifications do you think

708
00:50:34,480 --> 00:50:38,120
Speaker 1: you need? Um? But it really made me sit back

709
00:50:38,440 --> 00:50:44,040
Speaker 1: and think, here is this daughter of mine who is

710
00:50:44,520 --> 00:50:50,360
Speaker 1: so capable, and she's showing all the insecurities that I,

711
00:50:50,480 --> 00:50:54,000
Speaker 1: of course also had and that I've witnessed so many

712
00:50:54,040 --> 00:50:56,680
Speaker 1: other women had. So it it really caused me to

713
00:50:56,719 --> 00:51:00,439
Speaker 1: put pen to paper sort of a if I knew then,

714
00:51:00,560 --> 00:51:05,040
Speaker 1: you know what I know him now? And um, and

715
00:51:05,040 --> 00:51:07,680
Speaker 1: it was she she loved it. So it was it

716
00:51:07,800 --> 00:51:10,920
Speaker 1: was and some of this some of the bullet points,

717
00:51:11,680 --> 00:51:15,960
Speaker 1: we're pretty straightforward and and not a big surprise, but

718
00:51:16,200 --> 00:51:19,319
Speaker 1: some were giant surprises that when I when I read

719
00:51:19,360 --> 00:51:22,400
Speaker 1: through this, be ready for anything. That's good advice for

720
00:51:22,480 --> 00:51:27,200
Speaker 1: anybody in finance. Be confident. I see the gender specific

721
00:51:27,320 --> 00:51:33,800
Speaker 1: but um reasons for that. But but some of the suggestions, UM,

722
00:51:34,040 --> 00:51:36,840
Speaker 1: speak twice as loudly as you think you need to.

723
00:51:37,719 --> 00:51:39,879
Speaker 1: And I have a problem. I don't hear how loud

724
00:51:39,920 --> 00:51:42,840
Speaker 1: I speak, so I speak too loud. Why is that

725
00:51:42,960 --> 00:51:46,400
Speaker 1: advice necessary for women to tell them you have to

726
00:51:46,400 --> 00:51:50,960
Speaker 1: speak loudly if you're a room full of people. So again,

727
00:51:51,000 --> 00:51:57,600
Speaker 1: if you're generalizing, women tend to speak more softly and

728
00:51:58,360 --> 00:52:03,640
Speaker 1: therefore don't come across having as much conviction in their

729
00:52:03,680 --> 00:52:08,320
Speaker 1: ideas even if they do. Uh. And it really harkened

730
00:52:08,360 --> 00:52:13,160
Speaker 1: back to when I was in a room, uh filled

731
00:52:13,200 --> 00:52:16,080
Speaker 1: it was a boardroom and I was presenting on something

732
00:52:16,160 --> 00:52:19,759
Speaker 1: I actually knew a lot about, and so and said, oh,

733
00:52:19,800 --> 00:52:21,520
Speaker 1: can you speak up. I couldn't hear you, know, I

734
00:52:21,520 --> 00:52:23,560
Speaker 1: couldn't hear you, And it just set me back, and

735
00:52:23,560 --> 00:52:28,360
Speaker 1: I thought, this will never happen again. I also think

736
00:52:28,440 --> 00:52:33,880
Speaker 1: there is sometimes a tendency when someone is speaking softly

737
00:52:33,960 --> 00:52:36,399
Speaker 1: for someone else in the conference room to just come

738
00:52:36,480 --> 00:52:40,400
Speaker 1: right over the top, and you know, interrupt and that

739
00:52:40,440 --> 00:52:44,120
Speaker 1: doesn't happen when you're forceful. So it's one of the

740
00:52:44,160 --> 00:52:48,480
Speaker 1: basic things I tell any mentee I have, any women

741
00:52:49,080 --> 00:52:54,160
Speaker 1: that I'm meeting with, just speak loudly. Uh, make your

742
00:52:54,239 --> 00:52:56,960
Speaker 1: voice heard. Uh. You don't need to know it all

743
00:52:57,040 --> 00:52:59,879
Speaker 1: on day one. Very straightforward. You have no idea where

744
00:52:59,880 --> 00:53:03,239
Speaker 1: you career will lead. Very straightforward. Here's another one that

745
00:53:03,400 --> 00:53:05,600
Speaker 1: leapt out at me that I never would have thought of.

746
00:53:06,239 --> 00:53:10,239
Speaker 1: Draw lines in the sand. Tell us what that means.

747
00:53:10,280 --> 00:53:14,120
Speaker 1: So for me as a parent once I had kids,

748
00:53:14,360 --> 00:53:20,080
Speaker 1: it was figuring out what I wouldn't give up. I

749
00:53:20,120 --> 00:53:26,520
Speaker 1: think there many women are conflicted. They feel awkward saying

750
00:53:27,280 --> 00:53:29,960
Speaker 1: I'm leaving the office because I have to take my

751
00:53:30,120 --> 00:53:33,680
Speaker 1: child to the doctor, etcetera. And there were certain things

752
00:53:33,760 --> 00:53:37,480
Speaker 1: I just wouldn't give up. I never missed a school

753
00:53:37,640 --> 00:53:41,040
Speaker 1: performance or play. I never missed a parent teacher conference.

754
00:53:41,400 --> 00:53:43,880
Speaker 1: But was I able to go to the gym? Was

755
00:53:43,920 --> 00:53:46,200
Speaker 1: I able to make it home for dinner every night? No,

756
00:53:46,800 --> 00:53:49,440
Speaker 1: So figure out where your lines in the sand are.

757
00:53:49,640 --> 00:53:53,760
Speaker 1: Although I will tell you after a year of work. Um.

758
00:53:53,800 --> 00:53:57,160
Speaker 1: My daughter was reflecting on those truths and she said,

759
00:53:58,080 --> 00:54:01,319
Speaker 1: I get it, but as a for sere, I just

760
00:54:01,320 --> 00:54:03,160
Speaker 1: have to put my head down work. I don't have

761
00:54:03,239 --> 00:54:05,799
Speaker 1: lines in the sand. So well, it's different when you're

762
00:54:05,920 --> 00:54:10,400
Speaker 1: twenty four and single versus married with kids. Obviously the

763
00:54:10,440 --> 00:54:12,640
Speaker 1: obligations are different. Well, well, I found it to be

764
00:54:12,719 --> 00:54:15,680
Speaker 1: really interesting, and um, I'm glad we got to talk

765
00:54:15,719 --> 00:54:18,719
Speaker 1: about a little bit. Let's I only have you for

766
00:54:18,760 --> 00:54:22,880
Speaker 1: a limited amount of time. Let's jump to everybody's favorite questions,

767
00:54:23,640 --> 00:54:27,840
Speaker 1: starting with so, tell us what you were watching during lockdown?

768
00:54:27,920 --> 00:54:32,360
Speaker 1: What was your Amazon Prime or Netflix favorite shows? I

769
00:54:32,360 --> 00:54:36,520
Speaker 1: don't know what this says about my emotional state. So

770
00:54:36,640 --> 00:54:39,879
Speaker 1: I've definitely evolved a little more, you know, high brow

771
00:54:40,040 --> 00:54:43,279
Speaker 1: versus where I started, is what I'll say. Uh. So,

772
00:54:43,360 --> 00:54:49,000
Speaker 1: at the beginning, I was watching shows like Love Is Blind.

773
00:54:49,160 --> 00:54:53,239
Speaker 1: I don't know, uh And my version of that, by

774
00:54:53,280 --> 00:54:55,680
Speaker 1: the way, was The Gilmore Girls. In the beginning of Lockdown,

775
00:54:55,680 --> 00:54:58,080
Speaker 1: my wife and I streamed the whole Gilmore Girls, which

776
00:54:59,080 --> 00:55:01,120
Speaker 1: I should be embarrassed us to admit, but I'm not.

777
00:55:01,760 --> 00:55:06,200
Speaker 1: And now it's evolved to something a little more sophisticated exactly.

778
00:55:06,920 --> 00:55:10,840
Speaker 1: And then I enjoyed shows like ted Lasso and others.

779
00:55:11,280 --> 00:55:16,160
Speaker 1: Right now I'm watching White Lotus on HBO literally teed

780
00:55:16,239 --> 00:55:19,640
Speaker 1: up for tonight. I hear it's hilarious. Is it as

781
00:55:19,640 --> 00:55:25,280
Speaker 1: funny as everybody says it's Is it as funny sardonic? Yes? Okay,

782
00:55:25,480 --> 00:55:29,480
Speaker 1: is what I would say. You probably won't like anyone

783
00:55:29,560 --> 00:55:32,440
Speaker 1: on the show, right, which is usually a bad sign,

784
00:55:32,800 --> 00:55:36,360
Speaker 1: Like people love succession, I hate everybody on that show.

785
00:55:36,360 --> 00:55:39,239
Speaker 1: When I never got past this second episode, I think

786
00:55:39,239 --> 00:55:45,399
Speaker 1: you'll find I hear similarities, okay, where as something like

787
00:55:45,960 --> 00:55:50,000
Speaker 1: Ship's Creek in the beginning, everybody is totally contemptible, but

788
00:55:50,600 --> 00:55:54,080
Speaker 1: they all become lovable characters over time. So it's funny

789
00:55:54,080 --> 00:55:57,280
Speaker 1: you mentioned Ship's Creek. So so my two go twos

790
00:55:57,440 --> 00:56:01,520
Speaker 1: when I need to just relax and laugh. Stressful day.

791
00:56:01,800 --> 00:56:05,359
Speaker 1: Modern Family so good, so good. I could just watch

792
00:56:05,440 --> 00:56:08,480
Speaker 1: them over not right, and they're they're both. So I'm

793
00:56:08,520 --> 00:56:10,479
Speaker 1: going to come back to Ship's Creek in a couple

794
00:56:10,520 --> 00:56:14,840
Speaker 1: of years and rewatch it um because like the Nightcap

795
00:56:15,239 --> 00:56:21,919
Speaker 1: is it has been these classic sitcoms like UM, thirty Rock,

796
00:56:22,239 --> 00:56:29,200
Speaker 1: and Community. It's like a good way to um. Modern

797
00:56:29,280 --> 00:56:33,319
Speaker 1: Family is terrific. And there's another one that you know.

798
00:56:33,440 --> 00:56:37,120
Speaker 1: It only lasted four seasons, but it's so good called

799
00:56:37,200 --> 00:56:40,319
Speaker 1: Life and Pieces tells the story of a family, an

800
00:56:40,320 --> 00:56:45,640
Speaker 1: extended family. In each episode is three vignettes, one about

801
00:56:45,680 --> 00:56:48,319
Speaker 1: the parents, one about the kids, one about the grandparents,

802
00:56:48,719 --> 00:56:51,600
Speaker 1: and they're all into related. If you like modern family,

803
00:56:52,760 --> 00:56:55,400
Speaker 1: try that. It's like it's just a nice relaxing and

804
00:56:56,560 --> 00:56:59,560
Speaker 1: all the actors and actresses are great in it. It's

805
00:56:59,640 --> 00:57:05,960
Speaker 1: just it's just a sort of show. Um. And I

806
00:57:06,800 --> 00:57:09,279
Speaker 1: was like the last two Ships Creek that my wife

807
00:57:09,280 --> 00:57:12,480
Speaker 1: had a drag me kicking and screaming because the first episode,

808
00:57:12,600 --> 00:57:15,880
Speaker 1: everybody is just so contemptible. But if you give it

809
00:57:15,920 --> 00:57:20,320
Speaker 1: a little breathing room, they grow out of it. Tell

810
00:57:20,400 --> 00:57:23,680
Speaker 1: us about your early mentors who helped to shape your career.

811
00:57:24,680 --> 00:57:29,720
Speaker 1: So I really had several. Unfortunately, I'm sure I'll be

812
00:57:30,000 --> 00:57:33,080
Speaker 1: leaving people out here because I really do feel like it.

813
00:57:33,080 --> 00:57:39,240
Speaker 1: It took a village. But my first mentor was David Cipher.

814
00:57:39,280 --> 00:57:41,800
Speaker 1: He was an insurance analyist. He was the number one

815
00:57:41,840 --> 00:57:46,360
Speaker 1: ranked equity research analysts at First Boston. That's where I started. Uh,

816
00:57:46,360 --> 00:57:48,920
Speaker 1: he was not my first boss. I was working for

817
00:57:48,960 --> 00:57:53,120
Speaker 1: someone else and I was there one night at ten

818
00:57:53,160 --> 00:57:57,600
Speaker 1: o'clock at night, David had hosted a dinner for a

819
00:57:57,600 --> 00:58:00,640
Speaker 1: company I think it was Tokyo Marine and came back

820
00:58:00,680 --> 00:58:02,600
Speaker 1: to the office. I was the only one still there,

821
00:58:03,200 --> 00:58:06,760
Speaker 1: and so he said, I need you on my team. Literally.

822
00:58:06,840 --> 00:58:10,800
Speaker 1: That was our connection, and UM goes to show you

823
00:58:11,120 --> 00:58:14,720
Speaker 1: being in the office has as could have positive results.

824
00:58:14,840 --> 00:58:18,640
Speaker 1: So another female thing here. You know, Historically I would

825
00:58:18,640 --> 00:58:21,200
Speaker 1: have said I was lucky. Now I just say I'm fortunate.

826
00:58:21,600 --> 00:58:26,080
Speaker 1: There's no goiness there. So we connected and I followed

827
00:58:26,160 --> 00:58:29,080
Speaker 1: him to d l J. But he really pushed me.

828
00:58:29,640 --> 00:58:32,560
Speaker 1: He was the one who, when I didn't feel ready,

829
00:58:32,960 --> 00:58:35,720
Speaker 1: had me go meet with portfolio managers and he used

830
00:58:35,760 --> 00:58:38,360
Speaker 1: to say, like, you know all the numbers. You can

831
00:58:38,400 --> 00:58:41,360
Speaker 1: answer all their questions, you know. I So I credit

832
00:58:41,440 --> 00:58:46,640
Speaker 1: my career really to him and uh Tom Letty, who

833
00:58:46,720 --> 00:58:50,760
Speaker 1: ran the morning meeting at d l J. He's a

834
00:58:50,800 --> 00:58:53,840
Speaker 1: wonderful person, but he was very tough and very tough

835
00:58:53,920 --> 00:58:57,520
Speaker 1: on me, and I'm ever grateful to him for that.

836
00:58:57,680 --> 00:59:00,760
Speaker 1: He would let me come in super early. I would

837
00:59:00,800 --> 00:59:02,520
Speaker 1: tell him what I was thinking of saying, and he

838
00:59:02,520 --> 00:59:04,760
Speaker 1: would just say, that's not what you want to say,

839
00:59:04,880 --> 00:59:07,360
Speaker 1: you know, in a in a pretty harsh tone. Um,

840
00:59:07,560 --> 00:59:11,480
Speaker 1: But it forced me to just get better and better

841
00:59:11,520 --> 00:59:14,120
Speaker 1: at it. So those were the two early but you know,

842
00:59:14,200 --> 00:59:17,280
Speaker 1: I have to say, even my time at Blackstone, I've

843
00:59:17,400 --> 00:59:24,360
Speaker 1: learned a lot from just watching Steve and Tony and

844
00:59:24,480 --> 00:59:28,280
Speaker 1: John Byron ween Is on my team and um, you know,

845
00:59:28,360 --> 00:59:34,760
Speaker 1: just the collective experience and different style. So uh, you know,

846
00:59:34,840 --> 00:59:38,520
Speaker 1: from all of them, I would say, just thinking big

847
00:59:38,560 --> 00:59:43,240
Speaker 1: about building your business, and you know, not incrementally. My

848
00:59:43,280 --> 00:59:46,080
Speaker 1: team hears me say this at nausea. I did a

849
00:59:46,160 --> 00:59:47,640
Speaker 1: hundred this year, so next year I'm going to do

850
00:59:47,640 --> 00:59:49,880
Speaker 1: a hundred of ten. No, I want to think about

851
00:59:50,160 --> 00:59:52,440
Speaker 1: how big can this be and how do we get

852
00:59:52,480 --> 00:59:57,440
Speaker 1: there quickly? So that combination of you know, thinking big, impatience,

853
00:59:57,960 --> 01:00:00,800
Speaker 1: really focusing and just being a flex civil thinker and

854
01:00:01,840 --> 01:00:06,320
Speaker 1: you know, an equity research you certainly go through different cycles.

855
01:00:07,040 --> 01:00:13,600
Speaker 1: But at Blackstone I've really learned, uh to not say like, well,

856
01:00:13,640 --> 01:00:17,080
Speaker 1: when a happens, you do be or etcetera. It's really,

857
01:00:17,160 --> 01:00:19,480
Speaker 1: well a happened, But I don't know, maybe we should

858
01:00:19,480 --> 01:00:21,040
Speaker 1: be thinking about X, Y and Z that no one

859
01:00:21,080 --> 01:00:24,920
Speaker 1: else has done. And so it's been expansive for me,

860
01:00:25,680 --> 01:00:29,040
Speaker 1: very interesting. Uh, tell us about some of your favorite

861
01:00:29,080 --> 01:00:31,880
Speaker 1: books and and what are you reading right now. So

862
01:00:32,000 --> 01:00:35,960
Speaker 1: I just finished reading Hamnet, which I don't know if

863
01:00:35,960 --> 01:00:39,000
Speaker 1: you've heard of it, but it's so it's fiction, but

864
01:00:39,200 --> 01:00:45,640
Speaker 1: it's based on Shakespeare's son Hamnet. Notice connection to Hamlet,

865
01:00:46,200 --> 01:00:52,160
Speaker 1: who died when he was eleven, and uh, and around

866
01:00:52,240 --> 01:00:55,440
Speaker 1: Shakespeare's wife. The story itself is fictional because there's just

867
01:00:55,600 --> 01:00:59,360
Speaker 1: very little information on them, but it was beautifully written

868
01:00:59,520 --> 01:01:06,200
Speaker 1: and fatacinating. Um. I often also am drawn to biographies,

869
01:01:06,280 --> 01:01:11,800
Speaker 1: either autobiographies or or others. So uh, the Einstein biography

870
01:01:11,920 --> 01:01:16,840
Speaker 1: and Steve Jobs. I loved Phil Knight's book Shoe Dog. Um.

871
01:01:17,560 --> 01:01:23,200
Speaker 1: On audio, I listened to Ruth Bader Ginsburg Obama, and

872
01:01:24,040 --> 01:01:28,919
Speaker 1: I just love hearing one about for none of them,

873
01:01:28,960 --> 01:01:31,080
Speaker 1: you know, was any of this easy? They all had

874
01:01:31,520 --> 01:01:35,840
Speaker 1: repeated failures, but also Einstein in particular. It was this

875
01:01:36,080 --> 01:01:38,880
Speaker 1: light bulb went on that here's the guy we all

876
01:01:38,920 --> 01:01:43,840
Speaker 1: call a genius. He was and um, we refer to

877
01:01:44,240 --> 01:01:47,440
Speaker 1: people who excelled in in all different subjects geniuses, but

878
01:01:47,560 --> 01:01:51,480
Speaker 1: he really excelled in one. He was nniacally focused on

879
01:01:51,480 --> 01:01:55,120
Speaker 1: one area. He didn't do well in chemistry. He needed

880
01:01:55,240 --> 01:01:58,520
Speaker 1: language tutors. I just thought it was I never really

881
01:01:58,560 --> 01:02:01,720
Speaker 1: thought about that in that was that Walter Isaacson's book,

882
01:02:01,920 --> 01:02:04,080
Speaker 1: because I know he did the Steve Jobs book as well.

883
01:02:05,040 --> 01:02:08,000
Speaker 1: And then I'd say the final category for me is

884
01:02:08,040 --> 01:02:12,000
Speaker 1: just something that's so beautifully written. So my favorite book

885
01:02:12,000 --> 01:02:15,960
Speaker 1: of all time is Crossing to Safety and it's not

886
01:02:16,080 --> 01:02:19,360
Speaker 1: a big story, it's sort of a quiet story, but

887
01:02:19,480 --> 01:02:23,960
Speaker 1: the use of language is just wonderful. There's an autobiography

888
01:02:24,040 --> 01:02:27,920
Speaker 1: I read last summer by David McCullough on the right

889
01:02:28,040 --> 01:02:32,200
Speaker 1: Brothers that if if you're an autobiography fan, I have

890
01:02:32,280 --> 01:02:37,720
Speaker 1: no interest in that particular genre of flying or it's

891
01:02:37,800 --> 01:02:40,480
Speaker 1: just so well done. And if you like autobio, if

892
01:02:40,520 --> 01:02:45,280
Speaker 1: you like biographies, everything mccullo writes is coming away with

893
01:02:45,320 --> 01:02:48,840
Speaker 1: great recommendations. Well thank you. You know. That's the beauty

894
01:02:48,840 --> 01:02:51,400
Speaker 1: of where I sit is I get recommendations from some

895
01:02:51,560 --> 01:02:55,840
Speaker 1: everybody each week, and you're getting the cherry picked versions

896
01:02:55,840 --> 01:02:59,800
Speaker 1: of that um our. Last two questions, what sort of

897
01:02:59,800 --> 01:03:02,800
Speaker 1: a vice would you give to a recent college grad

898
01:03:02,960 --> 01:03:06,600
Speaker 1: who was interested in a career in either private equity

899
01:03:06,720 --> 01:03:11,000
Speaker 1: or investing or finance. So this is the advice that

900
01:03:11,080 --> 01:03:15,240
Speaker 1: I've given my own adult children, and and I give

901
01:03:15,320 --> 01:03:19,640
Speaker 1: to their friends and anyone I speak to um, which

902
01:03:19,720 --> 01:03:25,520
Speaker 1: is when choosing not a job, think about the skill

903
01:03:25,600 --> 01:03:29,040
Speaker 1: set that you want to acquire. Make sure you're going

904
01:03:29,080 --> 01:03:32,360
Speaker 1: to a place where you could really learn, where you

905
01:03:32,440 --> 01:03:36,200
Speaker 1: think it's a quality firm and you're gonna learn from

906
01:03:36,320 --> 01:03:40,840
Speaker 1: quality people. But most importantly, just about how you act,

907
01:03:40,920 --> 01:03:43,560
Speaker 1: how you present. You want to be the person that

908
01:03:43,640 --> 01:03:46,480
Speaker 1: everyone says, I want her on my team. And what

909
01:03:46,520 --> 01:03:50,640
Speaker 1: does that mean. It means you're working hard, You're willing

910
01:03:50,680 --> 01:03:53,760
Speaker 1: to put whatever it takes to get the job done.

911
01:03:54,280 --> 01:03:59,640
Speaker 1: You're focused on the details, you're reviewing everything you know.

912
01:03:59,680 --> 01:04:04,120
Speaker 1: What can your value be as a young person, and

913
01:04:04,360 --> 01:04:07,080
Speaker 1: it's that you know no one's expecting you to have

914
01:04:07,160 --> 01:04:11,320
Speaker 1: the judgment of the partner. But whatever you're doing, just

915
01:04:11,440 --> 01:04:14,520
Speaker 1: make sure it's as excellent as it can possibly be.

916
01:04:14,760 --> 01:04:18,040
Speaker 1: Good good advice. Our final question, tell us what you

917
01:04:18,080 --> 01:04:20,840
Speaker 1: know about the world of investing today that you wish

918
01:04:20,880 --> 01:04:25,240
Speaker 1: you knew thirty years or so, or go thirty years

919
01:04:25,360 --> 01:04:29,680
Speaker 1: ago or so when you were first getting started. So

920
01:04:29,720 --> 01:04:33,120
Speaker 1: when I look back and I think about all of

921
01:04:33,160 --> 01:04:38,160
Speaker 1: the market disruptions during my career, so starting in the

922
01:04:38,200 --> 01:04:41,400
Speaker 1: summer of eighty six, when I began shortly after that

923
01:04:41,480 --> 01:04:45,240
Speaker 1: you had the stock market correction when five points seemed

924
01:04:45,280 --> 01:04:49,600
Speaker 1: like a day. That's can we call that a crash?

925
01:04:49,680 --> 01:04:52,400
Speaker 1: That's more than a correction. That's true. That's true, that's

926
01:04:52,400 --> 01:04:58,280
Speaker 1: a crash. And then you know the SNL crisis, interest

927
01:04:58,360 --> 01:05:03,240
Speaker 1: rate shock of nine for the tech bubble rise and

928
01:05:03,280 --> 01:05:07,600
Speaker 1: then deflation, the global financial crisis, disruption from a pandemic.

929
01:05:07,640 --> 01:05:11,520
Speaker 1: I mean, it's like, wow, floods every couple of years,

930
01:05:11,560 --> 01:05:16,440
Speaker 1: don't So in hindsight, it would have been wonderful to

931
01:05:16,480 --> 01:05:19,400
Speaker 1: know that we get these floods and that you have

932
01:05:19,560 --> 01:05:25,160
Speaker 1: to be nimble and flexible, uh in your thinking and

933
01:05:25,360 --> 01:05:29,280
Speaker 1: anticipatory and understand that you have no idea what's coming

934
01:05:29,320 --> 01:05:33,520
Speaker 1: your way. Uh So I think the other thing is,

935
01:05:33,720 --> 01:05:36,680
Speaker 1: which maybe I did know but proved to be true.

936
01:05:37,640 --> 01:05:41,560
Speaker 1: Finance is in my mind one of the most fascinating

937
01:05:42,120 --> 01:05:45,200
Speaker 1: industries because I mean, think about what I just mentioned

938
01:05:45,720 --> 01:05:51,080
Speaker 1: and all of the the derivative impacts of that and

939
01:05:51,440 --> 01:05:55,480
Speaker 1: inputs from that. I mean, you have to be thinking

940
01:05:55,640 --> 01:06:01,120
Speaker 1: about not just an industry, but what is happening on

941
01:06:01,160 --> 01:06:06,680
Speaker 1: the regulatory front, geo politically, secular trends. You know, we

942
01:06:06,680 --> 01:06:13,360
Speaker 1: were talking about the Internet disrupting retail. You know in

943
01:06:13,680 --> 01:06:16,480
Speaker 1: the nineties, the late nineties. Now it took a while

944
01:06:16,560 --> 01:06:22,440
Speaker 1: to to really um disrupt. But for someone who is

945
01:06:22,840 --> 01:06:27,800
Speaker 1: intellectually curious, there is just so much going on. Huh.

946
01:06:27,920 --> 01:06:32,160
Speaker 1: Quite fascinating. UM. Joan, thank you for being so generous

947
01:06:32,240 --> 01:06:35,640
Speaker 1: with your time. We have been speaking with Joan Solitar.

948
01:06:35,880 --> 01:06:39,880
Speaker 1: She is the global head of Private Wealth Solutions for

949
01:06:40,120 --> 01:06:45,480
Speaker 1: Investing Giant black Stone. If you enjoyed this conversation, well

950
01:06:45,560 --> 01:06:49,360
Speaker 1: check out all of our previous interviews. You can find

951
01:06:49,440 --> 01:06:54,520
Speaker 1: them at iTunes, Spotify, wherever finer podcasts are sold. We

952
01:06:54,640 --> 01:06:58,160
Speaker 1: love your comments, feedback and suggestions right to us at

953
01:06:58,840 --> 01:07:01,600
Speaker 1: m IB podcast at Blomberg dot net. Give us a

954
01:07:01,640 --> 01:07:05,600
Speaker 1: review at Apple itunesh You can sign up for my

955
01:07:05,800 --> 01:07:09,439
Speaker 1: daily reading list at rid Halts dot com. Check out

956
01:07:09,480 --> 01:07:13,520
Speaker 1: my weekly column on Bloomberg dot com slash Opinion. Follow

957
01:07:13,560 --> 01:07:17,240
Speaker 1: me on Twitter at rit Halts. I would be remiss

958
01:07:17,280 --> 01:07:20,000
Speaker 1: if I did not thank the crack staff that helps

959
01:07:20,040 --> 01:07:24,960
Speaker 1: put these conversations together each week. Paris Wald is my producer,

960
01:07:25,400 --> 01:07:29,160
Speaker 1: Attica val Bron is my project manager. Tim Harrow is

961
01:07:29,160 --> 01:07:32,720
Speaker 1: my audio engineer. Michael Batnick is my head of research.

962
01:07:33,480 --> 01:07:37,000
Speaker 1: I'm Barry Ridholts. You've been listening to Masters in Business

963
01:07:37,360 --> 01:07:38,560
Speaker 1: on Bloomberg Radio