Alan Patricof Investments: From Early Life to Business Success

Alan Patricof is a seasoned investor with a long history of successful ventures. He was born in 1938 in New York City.

Growing up, Patricof was exposed to the world of finance at a young age, which likely influenced his future career path. His father was a stockbroker.

Patricof's early life laid the groundwork for his future business success. He attended Harvard University, where he earned a degree in economics.

After college, Patricof went on to serve in the U.S. Army, which gave him valuable leadership experience.

Alan Patricof grew up on the Upper West Side of Manhattan, the son of Russian immigrant parents. He graduated from Horace Mann School for Boys in 1952 and went on to earn an M.B.A. from Columbia University in 1957.

At the age of six, Patricof started selling the Saturday Evening Post in the subway, and he graduated from Ohio State University with a B.A. in finance in 1955. His early start in sales and finance laid the groundwork for his future success.

Patricof's military service consisted of two deployments, first as Pvt. 1st Class Patricof in 1958 and again in 1961 as Corporal SP3.

Alan Patricof grew up on the Upper West Side of Manhattan, New York City, the son of parents who had immigrated from Russia to the United States. His father was a stockbroker at a small firm and he's of Jewish descent.

He graduated from Horace Mann School for Boys in 1952 and later received its Distinguished Achievement Award in 2003.

At just six years old, Alan started selling the Saturday Evening Post in the subway, marking the beginning of his career in media.

Patricof graduated from Ohio State University with a B.A. in finance in 1955, and then went on to earn an M.B.A. from Columbia University in 1957 while working full-time as an analyst for an investment firm.

Alan Patricof's career is a testament to his entrepreneurial spirit and adaptability. He started his first full-time job at Naess & Thomas, an investment counseling firm, which he left after being drafted into the U.S. Army in 1958.

Patricof's military service was followed by a stint at Lambert & Co., a development capital firm in New York. He was deployed again in 1961, but upon his return, he joined Central National Corporation (CNC), which managed the pulp and paper fortune of the Gottesman family.

CNC's investments included New York Magazine, which later acquired the Village Voice and New West Magazine. Patricof formed Aeneid Equities to manage these publications, which went public in 1971. However, the firm was acquired by Rupert Murdoch in a hostile takeover in 1977.

In 1969, Patricof founded Alan Patricof Associates (APA) with $2.5 million in assets under management. The firm expanded globally, forming venture capital firms in the UK and France, which were later renamed Apax in 1989.

Today, Apax has $75 billion under management, with stakes in over 120 companies, including AOL, Office Depot, and Apple Computer. Patricof's efforts in founding the first venture capital firm in France earned him the Légion d'honneur in 2020.

After stepping back from Apax in 2001, Patricof focused on fostering entrepreneurship in the developing world. He served as an adviser to the International Finance Corporation and joined the boards of nonprofits TechnoServe and the Trickle Up.

In 2006, Patricof returned to the private sector, founding Greycroft Partners with $75 million in funds under management. By 2022, the firm had grown to $3 billion under management, with investments in The Huffington Post, Wondery, and Axios.

Patricof looks for a capable leader, or "the jockey", who has experience in a similar industry and can attract top talent to join them.

He considers the economics of the business, asking if they make sense and are a formula for profitability.

Patricof also mentioned the current WeWork IPO issues as an example of what not to do, implying that a strong investment strategy is crucial for success.

To determine a company's potential, Patricof considers the "jockey" and the economics of the business, which are the two key factors in his investment strategy.

The best jockey is someone who has experience in a similar industry and can attract top talent from their former company. This means they're not just voting with their money, but also with their careers.

Patricof looks for a jockey who has a proven track record of success and can assemble a strong team. This team dynamic is crucial for the company's growth and profitability.

Here are some key characteristics of a successful jockey:

Once Patricof has identified a strong jockey, he then evaluates the economics of the business. He asks himself if the economics work and make sense. If they do, it's a formula for profitability.

One of the most exciting investments of 2020 was made by Patricof, who committed a lot of money to The RealReal, an online marketplace for luxury consignment goods.

He also backed Venmo, which is now owned by PayPal, and has his sights set on a new company called LEX, a real-estate equivalent of Nasdaq where you can buy and sell minority interests in real estate.

Patricof has also invested in the podcast arena, particularly in Wondery, which produced popular podcasts like "Dr. Death" and "Dirty John".

Podsights, another company he invested in, does ad attributions for podcasts, helping them understand which ads are most effective.

Glow offers subscriptions for podcasters, providing them with a new revenue stream, and Chartable helps podcasts market products, increasing their visibility and reach.

Veteran Apple investor Alan Patricof has a cautionary message about an AI bubble. He says everyone wants to be at an AI company, and it's the flavor of the month.

Patricof recommends investing in companies that use AI as a tool, rather than buying AI platforms. This approach can be more sustainable in the long run.

Alan Patricof has a long career in venture capital, with investments in companies like Apple and Venmo. His past investments include AOL, Audible, and Apple, where he was one of the earliest investors.

Patricof isn't alone in having concerns about an AI bubble. Emad Mostaque, the CEO of Stability AI, has also compared the hype around AI to the dot-com bubble of the late 1990s.

To be sure, not everyone agrees. Dan Raju, the CEO of fintech and brokerage firm Tradier, believes AI benefits are being realized right now by companies.

Alan Patricof's investment portfolio is a testament to his successful career in venture capital. He has invested in numerous startups, including a company that developed a platform for online music distribution.

Some of his notable investments include a company that was acquired by a major tech firm, and another that went public.

Patricof has a long history of investing in the arts, starting with the Off Broadway production of Clifford Odette's, The Big Knife in 1959.

He was instrumental in backing first-time Director Peter Bogdanovic, and that marked the beginning of his involvement in the theater.

Patricof joined the board of King's Road Productions, which produced The Last Picture Show that won two Academy Awards in 1972.

He also joined the board of directors of Cinecom, which produced Merchant Ivory's Room With A View, a film that won an Oscar in 1987.

Patricof invested in the Manhattan Theater Club's production of Ain’t Misbehavin’ in 1978, showcasing his continued support for the arts.

He has also invested in more recent musical productions, including the revival of Some Like it Hot, Tom Stoppard's Leopoldstadt, and Lin Manuel Miranda's Hamilton.

Patricof's musical productions include a folk concert at Town Hall in New York City in 1962, starring Oscar Brand and Jean Ritchie.

He co-produced a music and light show featuring Bobby Goldstein and Joshua White in The Lightworks, which was featured at the Parrish Museum in Water Mill, New York in 2020.

Portfolio Exits are a crucial part of a venture capitalist's success. Alan Patricof has 3 notable portfolio exits.

Alan Patricof's latest portfolio exit was a Reverse Merger with Alpha Tau Medical on March 08, 2022. This exit was valued at $XXM and was acquired by Healthcare Capital.

A Reverse Merger is a type of exit where a private company merges with a public company to gain access to public markets.

Here are the details of Alan Patricof's portfolio exits:

In our interview with Alan Patricof, he shares his insights on the world of investments. Alan Patricof is a pioneer in the venture capital industry.

He co-founded Apax Partners in 1969, which later became a global investment firm. Patricof's experience spans over five decades.

Alan Patricof has invested in numerous successful companies, including Apple, IBM, and Sony. His investments have generated significant returns.

Patricof's approach to investing emphasizes the importance of understanding the entrepreneur's vision and capabilities. He looks for companies with strong management teams and innovative products.

In our conversation, Patricof highlights the significance of timing in investing, noting that even the best ideas can fail if the timing is off.