Parallaxes Capital
Parallaxes Capital is a New York-based alternative asset manager founded in 2017 that purchases and monetizes Tax Receivable Agreements from PE sponsors, co-investors, and management teams, serving institutional LPs through four dedicated funds.
- Company typePrivate
- Founded2017
- HeadquartersBrooklyn, United States
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Parallaxes Capital does
Parallaxes Capital is an alternative asset manager founded in 2017 by Andy Lee as a spin-out from Lone Star Funds, focused exclusively on purchasing and monetizing Tax Receivable Agreements (TRAs). The firm, legally Parallaxes Capital Management, LLC (Delaware), operates from New York with a six-person team and is registered with the SEC as a Registered Investment Advisor. Its core product is the acquisition of TRAs from pre-IPO owners, private equity sponsors, co-investors, and management team members at a discount to intrinsic value, generating returns by collecting cash flows over the multi-decade life of the agreements. The firm has completed 20+ TRA acquisitions representing $750mm+ in undiscounted principal balance purchased across four consecutive funds (Fund I through Fund IV), and claims market leadership with 10x more TRA acquisitions than the next most active participant since 2017.
Parallaxes' technical edge rests on a proprietary pre-underwriting database that covers the entire TRA opportunity set (~200 changed-name issuers) from credit, legal, and tax perspectives, allowing the team to begin diligence on each opportunity from an advanced position. Supporting the core transaction business, the firm publishes an annual 'Demystifying Tax Receivable Agreements' whitepaper (2022-2024 editions), an ESG frameworks paper, TRA League Tables, and the TRAilblazing podcast, all aimed at standardizing and educating the market.
The business model combines standard alternative asset manager economics (a 2-and-20 fee structure on closed-end institutional funds targeting endowments, foundations, and family offices) with transaction-level returns from purchasing TRAs at a discount. Parallaxes has pursued a roll-up strategy, completing its first merger in 2021 and a second by 2023, with a long-term objective of potentially listing a consolidated vehicle similar to pharmaceutical and music royalty platforms. The firm became a signatory of the UN-supported Principles for Responsible Investment in July 2023 and is GDPR/CCPA compliant. Revenue and AUM figures are not publicly disclosed.
Parallaxes Capital firmographics
Firmographics- Name
- Parallaxes Capital
- Legal name
- Parallaxes Capital Management, LLC
- Website
- https://parallaxescapital.com
- Company type
- Private
- Founded year
- 2017
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Parallaxes Capital is a New York-based alternative asset manager founded in 2017 that purchases and monetizes Tax Receivable Agreements from PE sponsors, co-investors, and management teams, serving institutional LPs through four dedicated funds.
- Ownership category
- akta.pro rank
Parallaxes Capital industry classification
Industry- Product category
- Alternative Asset Management
- NAICS
- Other Investment Pools and Funds (5259), Funds, Trusts, and Other Financial Vehicles (525)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Secondaries Fundraising & Liquidity Intermediation (LP Stakes/GP-led) (FSAEALAG)
Keywords
Where Parallaxes Capital is headquartered
LocationHeadquarters
- HQ city
- Brooklyn
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Parallaxes Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Others
Revenue model
- Fund Management (Management Fees): Standard alternative asset manager fee structure with management fees on committed capital from closed-end funds. Parallaxes has raised four funds dedicated to TRAs since 2017.
- Performance Fees (Carried Interest): Carried interest on investment returns, typical for alternative asset managers.
- TRA Secondary Market Acquisitions: Purchasing TRAs from original holders at a discount to intrinsic value, generating returns through cash flow collection over the life of the TRA.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Multi-year contract | Institutional Fund Investment |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels7 records
Parallaxes Capital product offering
Product offeringCore offering
Parallaxes Capital is an alternative asset manager that purchases Tax Receivable Agreements (TRAs) from private equity sponsors, co-investors, and management team members to provide liquidity on otherwise long-dated, illiquid tax assets. The firm raises closed-end funds dedicated to TRA investments from institutional investors (endowments, foundations, family offices), deploying capital to acquire TRAs at a discount to intrinsic value and collecting the resulting cash flows over the life of each agreement.
Product overview
Parallaxes Capital is an alternative asset manager and market leader in monetizing tax receivable agreements (TRAs). The firm operates as a single focused product offering: providing liquidity solutions to TRA stakeholders by purchasing TRAs from pre-IPO owners, private equity sponsors, and management team members. Supporting this core service, the firm offers a suite of educational and market intelligence resources including the annual 'Demystifying Tax Receivable Agreements' whitepaper series (2022-2024 editions), an ESG frameworks paper, the 'TRAilblazing' podcast, and TRA League Tables tracking industry participants. The product ecosystem centers entirely on the TRA monetization service with supporting research publications and content platforms.
Differentiator
Problem solved
Functional benefit
Brands
- TRAilblazing: Parallaxes Capital's podcast dedicated to explaining tax receivable agreements and the TRA marketplace.
Products and services
- Tax Receivable Agreement Monetization Services Liquidity service for Tax Receivable Agreement holders, in which Parallaxes purchases TRAs from private equity sponsors, co-investors, and management team members at a discount to intrinsic value, monetizing otherwise long-dated, illiquid tax assets. The service targets PE sponsors seeking capital recycling, co-investors and management team members seeking liquidity, and entities winding down vehicles that require speed and certainty.
- Closed-End TRA Investment Funds (Fund I through Fund IV) Closed-end investment funds dedicated exclusively to Tax Receivable Agreement acquisitions, offered to institutional investors including endowments, foundations, and family offices. The funds deploy capital to purchase TRAs and generate returns through cash flow collection over the life of each agreement, offering investors uncorrelated, annuity-like cash flows with a standard 2 and 20 alternative asset management fee structure.
Quantifiable outcome
- Market leader with 10x more TRA acquisitions than the next most active participant since 2017
- +2 more outcomes
Companies that use Parallaxes Capital
Customer profileNamed customers7 records
Segments3 records
Ideal customer profiles3 records
Parallaxes Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature1 record
Parallaxes Capital partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- United Nations-supported Principles for Responsible Investment (PRI)coreParallaxes Capital became a signatory of PRI, the leading global network for investors committed to integrating environmental, social, and governance considerations. This demonstrates commitment to responsible investment practices in the esoteric asset management space.
Scale indicators5 records
Recent moves8 records
Expansion highlights5 records
Parallaxes Capital competitors and assessment
Company assessmentBroad incumbents
- Royalty Pharma: Largest publicly-traded pharmaceutical royalty buyer. Parallaxes explicitly draws the pharma royalty analogy — both buy long-dated, royalty-like cash flow streams — though Royalty Pharma is far larger and operates in healthcare rather than TRA.
- Pantheon Ventures: Global private markets investor with material secondaries and co-investment franchises. Parallaxes competes for the same LP capital and operates in adjacent secondaries/liquidity intermediation space.
- Lexington Partners: Pioneer and one of the largest dedicated secondary fund managers (LP secondaries and GP-led continuation vehicles). Parallaxes performs the same secondary liquidity function but narrowly in TRAs rather than across PE fund interests.
- Ardian (Secondaries): One of the world's largest secondary market investors (LP stakes and GP-led). Parallaxes is effectively a specialist secondary buyer in the TRA asset class — analogous in intermediation function but at much smaller scale and on a different instrument.
- StepStone Group: Large alternatives platform with dedicated secondaries, private equity, and private debt capabilities. As a scaled secondaries competitor, StepStone represents the type of entrant that could move into the TRA niche if it attracts institutional capital.
- Hipgnosis Songs Fund: Publicly-listed music royalty fund that Parallaxes cites as a historical analogue. Both strategies monetize long-dated, royalty-like cash flows but Hipgnosis operates at much larger scale in a different asset class.
- Lazard Secondary Advisors: Bulge-bracket advisory franchise with a dedicated secondary advisory practice. Parallaxes sits on the buy-side of the same secondary transactions where Lazard typically represents sellers.
Direct peers
- HealthCare Royalty Partners: Alternative asset manager specializing in healthcare royalty and milestone payment streams. Parallaxes' TRA business is the tax-asset analogue of HCR's healthcare royalty strategy — both purchase structured, long-dated cash flows from corporate counterparties at a discount.
Others
- iCapital Network: Listed as a Parallaxes counterparty for TRA execution, iCapital is a leading marketplace for alternative investments and a natural channel partner for sourcing institutional capital — included as an ecosystem participant rather than direct competitor.
Emerging players
- Wafra (Constellation Funds): Sovereign-affiliated alternative investment manager with specialty and co-investment mandates. Comparable in its willingness to acquire esoteric, niche cash-flow assets for institutional capital — overlapping target LP base.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks7 records
Key highlights7 records
Customer concentration
Parallaxes Capital social profiles
Digital presenceParallaxes Capital compliance and trust
Trust signalCompliance4 records
Parallaxes Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
Parallaxes Capital leadership team
Management profileNumber of profiles
Profiles3 records
Parallaxes Capital funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Parallaxes Capital M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Parallaxes Capital
What does Parallaxes Capital do?
Parallaxes Capital is an alternative asset manager that purchases Tax Receivable Agreements (TRAs) from private equity sponsors, co-investors, and management team members to provide liquidity on otherwise long-dated, illiquid tax assets. The firm raises closed-end funds dedicated to TRA investments from institutional investors (endowments, foundations, family offices), deploying capital to acquire TRAs at a discount to intrinsic value and collecting the resulting cash flows over the life of each agreement.
Is Parallaxes Capital a public or private company?
Parallaxes Capital is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Parallaxes Capital founded?
Parallaxes Capital was founded in 2017. It employs 1 to 10 people.
Where is Parallaxes Capital based?
Parallaxes Capital is headquartered in Brooklyn, United States, in the North America region.
How does Parallaxes Capital make money?
Three revenue lines are on record. Fund Management (Management Fees) is the primary driver. The others are performance Fees (Carried Interest) and TRA Secondary Market Acquisitions.
Who are Parallaxes Capital's main competitors?
Broad incumbents on record are Royalty Pharma, Pantheon Ventures, Lexington Partners, Ardian (Secondaries), StepStone Group, Hipgnosis Songs Fund and Lazard Secondary Advisors. HealthCare Royalty Partners is listed as a direct peer. iCapital Network is listed as an others. Wafra (Constellation Funds) is listed as an emerging player.
Does Parallaxes Capital have an API?
No public API is recorded for Parallaxes Capital.
What industry is Parallaxes Capital in?
Parallaxes Capital's product category is Alternative Asset Management. Its primary akta.pro industry code is FSAEALAG, Secondaries Fundraising & Liquidity Intermediation (LP Stakes/GP-led). Its NAICS code is 5259 and its SIC code is 6282.