YouSaid · the spoken record

Joan Solotar

lines on the record: 65
first: 2021-08-27
most recent: 2021-08-27
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“So there's a secular trend in private credit that really started in the financial crisis where banks no longer wanted to hold on to risk and were syndicating out. And it also at that time became clear that they were less willing to lend to middle market companies. So originally what began as a middle market industry in private credit emerged and we were certainly one of the leaders in that. But I would say today because of the scale that we have, we're actually able to lend to much larger companies. So it's an industry that has real secular tailwinds in terms of the demand for private credit. And we're able to deal with large companies, complex transactions, Unitronch take the whole deal. And we've been able to”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, for example, one fund right now that has a lot of traction is our non-traded REIT, which invests in high quality US real estate, again, the same themes that we're investing in for the institutional fund and the same team, importantly. So areas like multifamily housing where there's a supply demand mismatch or logistics playing on a very long-term theme around e-commerce, which is only accelerated during COVID.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know X percent, three four percent on the municipal bond portfolio, and we have other funds in real estate, in credit that can return much more that are also floating rate, which gives them better inflation protection.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The need for private credit is greater. Given where market valuations are, private investing is more attractive because you have more control over the asset, you're not subject to the whims, and we're not investing in the market per se. We're choosing the neighborhoods we want to be in. the performance of Blackstone funds across all the alternative asset classes has been good over a long period of time. So we have a lot of material to work with. And then we meet the individual needs. So it could be that your client as an advisor wants to put 20-25% of her or his assets into alternatives and they want a diversified portfolio. We have a product that matches that. Or they're earning”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we are absolutely partnering with RIAs and with advisors again around the world, whether they're in global banks, private banks, big wirehouses or independents. And to your question about where people are invested now and what they're looking for at the moment, historically, you would say, oh, our clients are really looking at portfolio that's 60-40, something like that, the traditional mix. And I would say today, given the search for yield, which is very hard to find everywhere in the world,”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I'll divide the clients into really three buckets The wealthiest and our family offices, which are often run like institutions with a chief investment officer, et cetera, but really want a single point of contact into all that Blackstone offers. The next tranche would be qualified purchasers, so folks also very wealthy individuals with $5 million or more. And they really are by SEC standards allowed to invest in anything. A big part of the market is what we call accredited in the US. It has different names all over the world, but essentially investors with one to five million dollars who want and historically have not had access to great product. And we also do serve investors who are below the million dollar level, but not with That many products that are suitable for them”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's been just terrific to be involved in the building of this business. So essentially, we are running private wealth as an end-to-end business rather than a sales organization. And what does that mean? It means everything from product development on the front end to providing education for advisors and marketing material using data analytics to better focus our salespeople and having a robust investor services team on the back end. And doing that globally. So serving your clients in Japan with folks who are on the ground speaking Japanese and having websites in negative language, which may sound obvious, but Takes a lot of people, a lot of effort, and we've been able to continue to vault ahead of the competition.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's a great question. Steve Schwarzman often says that there's nothing patentable in finance, meaning everyone in the world can see what you're doing and they're To copy it if it's successful, so you have to keep moving. And for our firm, that means continuing to find new areas where we see great investment opportunities, where others aren't as competitive. And that might mean we are, for example, the biggest real estate investor in the world. So from a scale perspective, there are transactions we can do that no one else can do. And building that kind of scale in life sciences, in direct lending, in private equity, which is a bit more competitive, but again, not at the scale that we're at. That's been a huge advantage for us, especially in this environment.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the, we call them principles like partners came into my office and said, hey, you know, I'm going to this dinner tonight for principals, and you really should be there, but you need to tell people that becoming a principals is important to you. And that just never occurred to me. I just thought, like, put your head down, you do your job, and someone's like, oh, let's make her a principal. And I'm sure that often is the case, but it certainly isn't always the case. And so I went into the office of the head of research and just said, I think I deserve to be principal for the following reasons. It is something that's very important to me. And I was named a principal that year.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So you have to really go back in time, and I'll put my strategy hat back on during the financial crisis. We were thinking a lot about where money was coming from for our funds. And we were very heavily dependent upon U.S. pension funds who are still quite an important set of clients for the firm. And at that time, we made the decision to expand internationally, both Europe and Asia, and then also start to think about how we would approach private wealth. So we started distributing through the big wire houses initially and really focused on qualified purchasers. So those 5 million and above who could invest in the traditional private equity funds. But more and more we were getting inquiries, well, how do we give access to good products, good service to more people? And for that, we began creating bespoke funds to address that market.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In a lot of similar ways to Blackstone like a partnership and even Blackstone, when I first joined fewer than 1,000 employees, it was. It felt like a partnership still small”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes. Well, DLJ was a subsidiary of Equitable, which was a subsidiary of ACASA. So itself went, public didn't feel like that, it felt very much.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I've held a few different roles at Blackstone. I'd say the common theme among them is that I've always worked across the entire firm. And in private wealth, I was asked to move in and really create a scale global business. And so I took the skill set that I had around being a strategic thinker and being able to manage teams of people, which I did at B of A, and really applied that here the last six years.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, when I was at DLJ, I worked on the firm's public offering. We were spun out of equitable. And Tony James was president of DLJ, very senior at Credit Suisse, and then he went over to become president of Blackstone and called me when they filed to go public to see if I would join to help them with that process and run shareholder relations and strategy, which is what I did initially.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I covered financial services, pretty much anything non bank so started an insurance and then wound my way to Mortgage insurance companies eventually really focused on the brokerage industry and asset management.”
2021-08-27 · Masters in Business · Joan Solotar on Private Equity Funds (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source