Empty Rooms: Investing in Tax Assets at Parallaxes Capital
Episode Description:
My guest on today’s sponsored insight is Andy Lee, the Founder and CIO of Parallaxes Capital. Andy spun out of Lone Star in 2017 to focus on the niche opportunity to invest in Tax Receivable Agreements or TRAs.
Our conversation covers Andy’s background and path to the hidden gem of TRAs. We cover the basics of a TRA, rationale for their use, drivers of return, and risks. We then discuss Parallaxes’ investment process, team, the future of the organization.
Learn more about <a href=”https://parallaxescapital.com/”>Parallaxes Capital</a>.
Show Notes
1:45 Andy’s background
3:25 Starting college at 15
5:10 Intro to tax receivable agreements
7:29 Creation of TRAs
11:46 Size of the TRA market
13:08 Drivers of returns
17:40 Operational logistics of TRAs
18:37 Sourcing transactions
22:40 Due diligence process
27:03 Exit strategy
31:41 Parallaxes team
32:32 Future opportunity set
33:33 Closing questions
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All opinions expressed by Ted and podcast guests are solely their own opinions and do not reflect the opinion of the firms they represent. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.