PARALLAXES CAPITAL

Thesis

Parallaxes Capital is a New York-based alternative asset manager established in 2017, with a singular focus on Tax Receivable Agreements (TRAs). The firm's core strategy involves providing liquidity to stakeholders of TRAs, which represent a company's commitment to share future tax savings with former shareholders, typically founders and early investors of public companies. Parallaxes Capital acts as a buyer of these TRA assets, thereby monetizing long-dated, contractual cash flows. Their investment focus is on TRAs and other tax assets, primarily within US-domiciled corporations, as TRA structures are most prevalent in the United States. The firm's stage preference targets existing TRA holders, including founders, early investors, private equity sponsors, co-investors, and management teams, implying a focus on mature companies post-IPO or significant restructuring. The strategy blends elements of private credit and special-situations investing, deploying capital directly into TRA portfolios. Parallaxes Capital aims to be a leading authority in this niche market, leveraging deep expertise to standardize terms and enhance transparency in TRA transactions. The firm reported $526 million in AUM in 2024, including $326 million in Private Equity Funds, and has raised four funds from family offices, foundations, and endowments. Their most recent fund, Parallaxes Capital Opportunity Fund VI, L.P., closed in April 2024. The firm distinguishes itself as one of the few institutional-scale buyers in the fragmented TRA asset pool, offering essential liquidity and financial solutions.

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• Series C+ investors based in New York, NY