Demystifying the Monetization of Tax Receivable Agreements

Abstract

This paper aims to facilitate the growth of the tax receivable agreement (“TRA”) market by demystifying the secondary market and introducing potential items for standardization. While TRAs have existed for thirty years, TRAs are often misunderstood and rarely drafted with a secondary purchaser in mind. This paper will cover a few issues that Parallaxes Capital has found particularly pertinent from our perspective as secondary purchasers. We also anticipate publishing annual updates with new learnings and developments in the market.

Keywords: Alternative Asset Investment, Tax Receivable Agreements, Corporate Law