FOR PEOPLE IN ALL INDUSTRIES.
FIRST GUEST, BLACKSTONE'S JOAN
SALAZAR.
ONE OF THE LARGEST GLOBAL ASSET
MANAGER, FOR THE $50 BILLION IN
ASSETS.
IT'S INVESTED IN COMPANIES SUCH
AS HILTON HOTELS, FOR SERGEY AND
MICHAEL'S RESOURCE.
JOAN IS THE PERSON FOR HELPING
BRING BLACKSTONE'S EXPERTISE TO
THE INDIVIDUAL INVESTOR.
SHE RUNS BLACKSTONE'S PRIVATE
SOLUTIONS GROUP, PART OF HER JOB
IS EXPLAINING HOW ALTERNATIVE
ASSET ARE DIFFERENT FROM
TRADITIONAL INVESTMENT.
>> YOU THINK ABOUT STOCKS AND
BONDS, WHICH MOST PEOPLE BUY ON
A DAILY BASIS TO THEIR BROKER ET
CETERA.
WE ARE MORE LIQUID, REAL ESTATE
ASSETS, WHOLE COMPANY.
>> LONGER-TERM, WE CAN CONTROL
THE ASSET AND MAKE CHANGES
WHETHER IT'S ACQUISITIONS WORK
CUTTING EXPENSES, CHANGING THE
MARKETING PLAN ET CETERA.
WE HOLD THOSE ASSETS FOR ABOUT
FIVE YEARS ON AVERAGE AND WHEN
WE SAW THEM.
DEIRDRE: UP UNTIL THIS POINT
MOST OF YOUR CLIENTS AND THE
FIRM'S YOU WORK FOR, SO TO
SPEAK, OUR PENSION FUNDS OR
UNIVERSITY ENDOWMENTS AND
BASICALLY INSTITUTIONS WITH A
WHOLE LOT OF MONEY BUT
BLACKSTONE RECENTLY HAS TRIED TO
MAKE SOME OF THE STRATEGIES A
LITTLE MORE ACCESSIBLE FOR
SMALLER INVESTORS.
EVEN AS MUCH AS ONE-5 MILLION OF
INVESTABLE ASSETS WHICH IN THAT
WORLD IT'S VERY SMALL COMPARED
TO NORMALLY - WHY DID YOU MAKE
THAT DECISION?
>> IF YOU THINK ABOUT IT, IF
YOU'RE A FIREMAN OR TEACHER OR
POLICE OFFICER YOU HAVE ACCESS
TO ALTERNATIVE INVESTMENT IN
YOUR PENSION FUND.
WE ARE MANAGING PROBABLY A PIECE
OF YOUR PORTFOLIO BUT MOST
INDIVIDUALS HAVE TO SAVE ON
THEIR OWN FOR RETIREMENT.
10, 20, 30 YEARS AND UNTIL VERY
RECENTLY ALL OF THAT MONEY WAS
INVESTED IN STOCKS AND BONDS
WITHOUT ACCESS TO HIGHER
RETURNING CATEGORIES LIKE
PRIVATE EQUITY OR CERTAIN PARTS
OF CREDIT FIXED INCOME AND HEDGE
FUNDS ET CETERA.
DEIRDRE: THE REASON THE
INSTITUTION SUCH AS PENSION
FUNDS LOVE WORKING WITH FIRMS
LIKE BUT DON'T YOU MAKE THEM
MORE MONEY THAN WHAT NORMALLY
THEY CAN DO JUST IN STOCKS AND
BONDS.
WHAT IS THE MAGIC SAUCE CONNECT
WHAT'S THE SECRET SAUCE AND HOW
DOES THAT HAPPEN?
>> THERE'S A REAL BENEFIT, ILL
LIQUIDITY, MEANING THAT IF YOU
THINK ABOUT EVEN INVESTING IN
BANKS CDS YOU GET PAID MORE
GENERALLY IF YOU'RE WILLING TO
TIE UP YOUR MONEY LONG-TERM.
THAT SAME ILLIQUIDITY PREMIUM
EXISTS IN OTHER CATEGORIES.
TYPICALLY, SOMEONE WHO HAS
ONE-$5 MILLION DOES NOT NEED TO
KEEP 100 CENTS ON THE DOLLAR
AVAILABLE IN A DAYS NOTICE AND
PERHAPS THEY CAN WAIT A MONTH OR
A QUARTER TO ACCESS THAT THEY
MONEY AND THEREFORE, THEY CAN
EARN A HIGHER RETURN.
DEIRDRE: WE HAVE A LOT OF
SUCCESSFUL THIS IS OWNERS WHO
WATCH APPEAR ON FOXBUSINESS BUT
ONE-5 MILLION TO JUST INVEST IS
A LOT OF MONEY.
WHO ARE THESE PEOPLE AND WHAT DO
THEY DO?
>> YOU DON'T HAVE TO HAVE
125 MILLION TO INVEST IN
ALTERNATIVES.
THAT WOULD BE YOUR TOTAL
INVESTABLE POOL.
THE ALTERNATIVE SIT ALONGSIDE
YOUR TRADITIONAL STOCKS AND
BONDS INVESTMENT BUT THERE
ENTREPRENEURS AND DENTISTS AND
DOCTORS IN THEY ARE
PROFESSIONALS OR WORKING FOLKS
WHO HAVE ACCUMULATED SAVINGS AND
THEIR RETIREMENT ASSET IN THE
LONG-TERM.
DEIRDRE: WHAT IF I AM NOT QUITE
THERE?
I WANT TO BE THERE IN FIVE YEARS
BUT NOT QUITE THERE SO HOW CAN I
EDIT MYSELF AND LEARN MORE ABOUT
SO THAT I CAN EVENTUALLY INVEST
IN THAT?
>> THE FIRST THING YOU WANT TO
DO IS FEAR OUT WHAT YOUR GOALS
ARE AND WHAT YOU'RE TRYING TO
ACHIEVE AND WHAT YOUR SPENDING
NEEDS ARE AND THINK ABOUT DO YOU
HAVE ENOUGH REGULAR INCOME OR
TRYING TO GENERATE MORE CASH
YIELDS THAN YOU ARE TODAY AND
READING UP ON AREAS LIKE PRIVATE
-
.
DEIRDRE: OR REAL INVESTMENT
TRUST.
>> RIGHT, OR CREDIT PRODUCTS
THAT ARE FLOATING RATE WHICH I
WILL WAIT WHERE YOU EARN A
HIGHER YIELD AS INTEREST RATES
GO UP BECAUSE WERE IN.
NOW WHERE IT FEELS LIKE INTEREST
RATES ARE RISING AND WOULD BE
TWO AREAS TO START.
DEIRDRE: YOU HAVE AN AMAZING
PERSONAL STORY.
YOU ARE A NATIVE NEW YORKER AND
GREW UP IN QUEENS BUT YOUR
FAMILY HAS A MUCH LONGER HISTORY
THAN THAT.
HOW - TELL US HOW THAT INFORMED
AND SHAPED WHO YOU ARE NOW.
>> I DID GO UP IN QUEENS.
MY DAD WAS A HOLOCAUST SURVIVOR
AND MIGRATED HERE FROM GERMANY.
MY GRANDPARENTS AND ROLLED HIM
IN VOCATIONAL HIGH SCHOOL SO
THAT HE WOULD BE ABLE TO GET A
JOB AND DRAFTED INTO THE
MILITARY AND WHEN HE CAME BACK
HE FELT LIKE HE COULDN'T GO TO
COLLEGE AND NEEDED TO WORK.
HE WAS NEVER A LARGE CORNER WHEN
I WAS IN A SCHOOL MY MOM WENT
BACK TO WORK AND WITH NO REAL
BUSINESS SKILLS THAT SHE FOUND A
MENTOR WHO TRAINED HER AND
ULTIMATELY BECAME AN INSURANCE
UNDERWRITER.
SHE WORKED FOR MUCH OF HER LIFE
TILL SHE WAS 75 ACTUALLY AND SO
I NEVER QUESTIONED THAT I WOULD
HAVE A CAREER THAT IT WAS
IMPORTANT TO BE INDEPENDENT
FINANCIALLY AND SHE LOVED WHAT
SHE DID.
I ALWAYS HAD A GREAT OUTLOOK ON
THAT.
DEIRDRE: THEY MUST BE SO PROUD
OF YOU, OF COURSE.
WHAT DO THEY WANT YOU TO DO?
TODAY HAVE OPINIONS ABOUT YOUR
CAREER?
>> THEY WANTED ME TO GET A JOB.