Andy Lee

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Founder & CIO at Parallaxes Capital

Andy founded Parallaxes Capital in 2017. Previously, he was with Lone Star Funds, focused on investing in the Americas. He began his career at Citigroup.

He has been featured in publications including The Wall Street Journal, Capital Allocators, Institutional Investor, NBC, Forbes, ReOrg Radio and Fitch’s LevFin Insights. He has spoken at events and conferences for organizations such as the Association of Asian American Investment Manager (“AAAIM”) and leading academic institutions including the University of Illinois, University of Pennsylvania and Texas Christian University (“TCU”).

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Andy Lee

Founder & CIO at Parallaxes Capital

Andy founded Parallaxes Capital in 2017. Previously, he was with Lone Star Funds, focused on investing in the Americas. He began his career at Citigroup.

As seen on

The Tax Whiz With the Strangest Hustle on Wall Street

“Lee invests in tax receivable agreements, increasingly common arrangements that put cash into the pockets of early investors in companies. Not many investors know how they work, and a surprising number of people don’t even know they have them.

That gives Lee an opening to buy up the cash flows from TRAs, as they are known, at a discount and count his winnings as they pay off. To get to that point requires deep knowledge of taxes, investing and the law, plus lots of persistence.”

A New, Esoteric Royalty Market Is Poised to Take Off

“After stints working on mergers and acquisition at Citigroup and then at the $86 billion private equity firm Lone Star Funds, Andy Lee thought there was enough opportunity to zero in on tax receivable agreements, or TRAs.

TRAs are contracts that obligate a publicly traded company to pay its previous financial sponsors based on the future realization of cash tax savings on tax attributes. But the stakeholders receiving the payments, who are usually private equity firms, would often rather have a lump sum of cash.”

TRAs: A Little-Known And Even Less Understood Asset Class

“While most casual investors have at least a passing familiarity with assets such as stocks, bonds and annuities, few have heard of tax receivable agreements (TRAs).

TRAs are assets that are typically created when a partnership or limited liability company is taken public. If a company goes public through what’s called a UP-C IPO structure, significant tax assets are created as part of the IPO.”

An unusual deal gave Virginia Gov. Glenn Youngkin $8.5 million in cash and tax-free status to his almost $200 million in stock, a lawsuit says

“Andy Lee, a New York City-based asset manager who is not involved in the suit, expressed concerns to NBC News about the details it outlined.

‘If the allegations are true, we would discourage such behavior on the part of management,’ said Lee, the chief investment officer of Parallaxes Capital, a financial firm that buys TRAs. ‘They are supposed to represent the interests of public shareholders.'”

On the Fly Fundraises and Last-Minute Diligence: How Allocators Handled the SVB Crisis

“Andy Lee, founder at investment firm Parallaxes Capital, said his team received a ‘flood’ of calls from limited partners who were contacting every manager that had ever banked with SVB. Parallaxes, incidentally, had moved away from banking with the firm in 2021. ‘That helped assuage a lot of concern,’ Lee said.”

Special Situations: Carvana tax maneuvers draw attention to $1.6B TRA asset that could give Garcias leverage in potential restructuring

“TRAs are becoming increasingly common, with more than 75 TRAs created in 2021 versus fewer than 15 in 2015, according to a 2022 white paper by Parallaxes Capital, an alternative asset manager with a unique strategy dedicated to monetizing TRAs. Pre-IPO business owners can benefit from cash tax savings through a TRA when a company is taken public in an umbrella corporation (Up-C) structure, Parallaxes Founder and CIO Andy Lee and General Counsel Saish Setty told LFI in an interview.”

Money-for-Nothing Lawsuits Against Private-Equity Founders Get Boost

“The founders of giant private-equity firms have been paid billions of dollars over the years. Payouts tied to arcane tax deals that brought nearly a billion more are under scrutiny in a Delaware courtroom.”