Andy Lee – Empty Rooms: Investing in Tax Assets at Parallaxes Capital (Capital Allocators, EP.305)
Capital Allocators – Inside the Institutional Investment Industry
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Unlocking Tax Receivable Agreements
This chapter explores Tax Receivable Agreements (TRAs) as strategic contracts that allow pre-IPO holders to capitalize on tax assets like net operating losses. It highlights the growing market for TRAs, their historical origins in real estate transactions, and the challenges faced by public companies in appreciating their value. Additionally, it discusses the implications for investors, particularly in light of rising IPOs and SPACs, emphasizing the need for awareness of latent tax asset benefits.
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