Private equity wrestles with its own generational wealth gap. Joe Baratta, about to retire from Blackstone, exemplifies the cohort that entered the industry at the end of the last century and timed the market perfectly. He joined Blackstone in 1998 and was instrumental in bringing leveraged buyouts to Europe.

Despite not being a founder, Baratta has shares worth nearly $900mn. Last year he took home more than $30mn in dividends and another $28mn in carried interest. Blackstone now manages $1.3tn in assets, roughly 90 times what it did in 2001.

Returns have moderated sharply, with several funds falling short of the 20 per cent annualised return expected of top-tier firms. Interest rates have risen since 2022 and may stay elevated, jamming the dealmaking machine. Politicians are taking aim at “vulture capitalists” in industries from hospitals to housing.

Large buyout firms find it harder to take big swings due to size, employee count, and share price pressures. Where does that leave a 20-something would-be Baratta today? Potentially looking at secondaries, net asset value loans, cryptocurrencies, digital assets, AI infrastructure, or sports deals. Meanwhile, boomers still reign at the top: Stephen Schwarzman remains CEO of Blackstone, and peers like Larry Fink, Jamie Dimon, and Marc Rowan show no rush to vacate their posts.

High finance mirrors broader generational inequality.