Lincoln: Welcome to Funds That Won, where we dive into some of the world's most renowned investment funds. We'll interview investment managers across the alternative landscape and learn how they built their million and even billion dollar asset management empires. We'll explore teams, structures, strategies, and best practices in launching and running alternative investment funds. All right, Saish, welcome to the studio today. Great to have you on.

Saisg: Yeah, thanks for having me, Lincoln. Pleasure.

Lincoln: Yeah. Well, why don't you go ahead and let's just start off by giving me the elevator pitch on Parallax's capital.

Saisg: Yeah. So Parallax's capital is the leading alternative asset manager that's focused on esoteric tax receivables. We're turning corporate tax into an asset class. And we're seeking to provide our investors with what's hopefully an uncorrelated cash yielding return that also has a potential call option on rising U.S. corporate tax rates. We were founded in 2017, and we've raised and deployed over $300 million across our flagship vehicle since that point. And we really just provide liquidity solutions for private equity vehicles, co-investors, management team members, to allow them to monetize these otherwise stranded tax assets that are pretty long dated in nature, 15 plus years, that can be honestly just difficult to hold or manage.

Lincoln: Excellent. Wow. Well, we are going to get into TRAs for sure. But why don't you, you know, quick introduction on yourself now that you've introduced the firm.

Saisg: Yeah, definitely. So I'm on the investment team here at Parallaxus. I always say with a smile that a recovering lawyer on some level, but also act as the firm's general counsel. I started my career off at Wachtell Lipton in the restructuring and financing groups, spent some time at Paul Weiss before joining the team here about three years ago.

Lincoln: Excellent. And you've been loving it since?

Saisg: Yeah. Yeah. I think, uh, starting, uh, being a part of a young nascent asset class and growing a manager, as I'm sure, you know, has its challenges, but it's more ups than downs for sure.

Lincoln: Yeah. Well, that's awesome. And you're based out of New York, right?

Saisg: Yeah, that's right.

Lincoln: Excellent. Okay. Well, let's hop into your investment strategy since it's a unique one here. Uh, so talk to me about, uh, tax receivables.

Saisg: Yeah, yeah. So maybe let's take a step back and think about tax generally. When you say tax, people's eyes often just glaze over. It isn't an inherently tantalizing strategy by any stretch. I think right now you seem more interested than the average person does when you say tax. And like I mean we were at a conference recently you run into all sorts of esoteric strategies. And let's just say it's a little hard to follow up the funds that are investing in things like whiskey aging or sports media rights with probably the least sexy thing around in tax. But we like to joke at Parallax that there are two things that are unavoidable in life, death and taxes. And thankfully, we're only playing in the latter. And we're turning corporate tax into an asset class. I'm sure when I say that, it sounds weird and funky. But when you think about it, I mean, we all pay tax, hopefully at least. It's the largest asset class that's just hidden in plain sight. And the tip of the spear in terms of what we're doing is being focused on what are called tax receivable agreements or TRAs.

Lincoln: Okay, so what is a tax receivable agreement then?

Saisg: Yeah, the natural question. So this is something that most people in finance don't really know about, even if they're relatively sophisticated, but they should. A tax receivable agreement, it's just a contract where one party agrees to pay out the benefits it realizes. as it uses certain tax assets. So like a tax credit or a depreciation deduction, as those generate tax savings, you pay that out to a third party under the TRA. And so given this structure, TRAs can be used in most any context where you have tax benefits. So an example I like is, let's say you take a private M&A transaction. Right now, it's very common to use rep and warranty insurance. You're shifting certain transaction risks to an insurer. But similarly, you could have disagreement on the value of the target's tax assets. The buyer and seller can have very different views on when these tax savings can be realized, the company's ability to use these tax assets, So you can use a TRA there to separate the value of those tax assets out and sell it to a third party, or even the seller can hold it for themselves. And we like the parallel to rep and warranty insurance, because 20 years ago, nobody was really using that. It was hardly common. And we believe TRAs are on a similar path. And I mentioned private M&A, but that's more of an example. One of the most common situations where you have a TRA is actually in a company's IPO. And these IPO TRAs are what we focus on. So when you IPO a company, you can often structure it so that the structure itself, the act of going public basically, will generate substantial tax benefits for the company. And these tax benefits are then just shared with the company's pre-IPO owners through the TRA. And this structure is actually relatively common. We estimate that about 10% of domestic IPOs in recent years have included a TRA. And since the time we started Parallaxes in 2017, if you want to think about things in terms of like TAM or total of TRA payments that are out there, Amongst these public companies, it's grown about four times since 2017. Wow.

Lincoln: Okay. So it's basically transferable tax credits, right? Is that a good way to say it?

Saisg: Yeah, so the devil's in the details there. One key difference here is that you're not actually transferring the tax assets or tax credits themselves. So I'm sure you're probably familiar with a lot of strategies that are focused on like renewable tax credits or things of that sort. Here, it's often a public company. They keep the tax assets. And as they use those tax assets to generate cash tax savings, they're actually paying it out to the TRA holders. So just imagine you have a large public company. They have $100 million depreciation deduction that's available to them. If you assume a 25% tax rate, they're going to save $25 million in taxes that year. The key is when you have a TRA in place, that company will just pay out that $25 million to the TRA holders instead of keeping it for itself. And I always hate describing an already complicated strategy and layering on more complexity on it. But you could even think of it as a tax derivative on some level, but at its core, it's just a contractual arrangement and we're buying those contract rights.

Lincoln: So what percent of your portfolio bout is in these kind of pre-IPO agreements?

Saisg: Yeah. So the, the entirety of our portfolio.

Lincoln: Everything. So, okay. So with real estate assets or anything, other, other tax assets, it's primarily just these IPO scenarios.

Saisg: That's right. I mean, it's entirely tax receivable agreements. That said, it's a new asset class. I realized when I say it like that, it sounds narrow, but it's pretty common in IPOs. It's getting more common. We purchased them on the secondary market with the intention of eventually becoming primary originators and also being active in the private M&A space as well.

Lincoln: Yeah. So I actually, I actually worked at the JP Morgan private bank for a little while. And, uh, you know, that was, uh, that was, it's always a big topic, right. As, as these wealthy individuals take a company public, you know, dealing with RSUs and all their tax treatments. Uh, so I'm, I'm a little bit familiar, but this is, this is crazy to me that there's this massive market, you know, on, on tax receivable agreements.

Saisg: Yeah. And massive market, but. We're the only dedicated players in this space. Now, I'm not naive to believe that that will continue forever, but there is a large market. We're the dominant players in it.

Lincoln: Gotcha. So walk me through, why would someone even put a TRA into place in a business?

Saisg: Yeah, so there are a lot of conflicting reasons for it. But academic theory actually suggests that TRAs do not negatively impact a company's equity valuation when it IPOs. And if you grew up in the school of efficient market theories, that probably is a thought that you find questionable. I mean, that's how I grew up. And it's kind of a weird concept. to have in mind, but TRAs, they're extensively disclosed in a company's filings. So it's not as though they're hidden from view. And if you take an example, like TPG, IPO-ed with a TRA relatively recently, you look at their S-1, if you search tax receivable agreement, it's mentioned over 100 times, I think, including in their risk factors. So the natural question is like, OK, why wouldn't a TRA impact a company's valuation? One explanation is that, well, these are just difficult to value. You need to estimate your future taxable income. You have to have a deep understanding of the relevant tax assets and how you can use them. I'm probably a little partial to that explanation since it makes us look a little better and illustrates our value add. Another justification is really just that public markets investors are often focused on metrics that don't incorporate tax. So just think about how we talk about public companies and their valuations. It's often an EBITDA multiple. It's a revenue multiple for a growthier company. Whether or not a company keeps these tax assets for themselves is almost irrelevant. And you almost see this in practice, too. an investment banking guide and go to the chapters where it lays out how you run a DCF, they don't really spend very much time on the impact of tax and how you model that out. So it isn't entirely surprising that these tax assets are disregarded or simplified in an IPO's valuation. So really, if you're taking a company public, and you think that public markets are agnostic to the value of these tax assets, you're incentivized to structure a TRA, put it into place and keep those tax assets through the TRA because they're not impacting the valuation of the public company. Right.

Lincoln: Gotcha. And so you said you've raised and deployed over 300 million. Is that through multiple funds or is that through a single fund that you're still running or what does that look like?

Saisg: Yeah. So we've raised through multiple funds. We're very cognizant of the fact that we're a new asset class. People aren't really familiar with it. So what we've actually part of what we're trying to prove out is our ability to deploy capital very quickly. So we've actually been raising vehicles almost annually and fully deploying them around that time frame.

Lincoln: Gotcha. What does the term look like that you're able to communicate to investors? What's the liquidity like in an asset class like this?

Saisg: In terms of liquidity, these are probably as illiquid as one imagines them to be. It's not like you can pull them up on Bloomberg. One day you'll probably get to a stage where these are just much more tradable in the sense of like how term loans have become a lot more tradable and liquid over the past years. I think we'll see that come to TRAs, but right now it's still fairly illiquid. You see that, I'm happy to dive into like our sourcing efforts, but you see that in almost every part of the business. But that illiquidity is also something that we expect to be compensated for when we're originating these investments.

Lincoln: Gotcha. So what's like the average duration on any one of your deals?

Saisg: Yeah. So the duration of it is when you look at the tax assets that are underlying these contracts, It's most often goodwill depreciation, goodwill amortization deductions. And so those take place over 15 years and there's nuance to it, but you can think of these as 15 year assets.

Lincoln: Gotcha. So I'm able to receive principal plus return by the end of year 15.

Saisg: So weighted average life of these is probably around six, seven years. So you'll recover principal and then you'll continue to receive payments through that 15 year period.

Lincoln: Gotcha. Wow. That's, that's, that's crazy.

Saisg: It's long. Yeah. It's longer than most people are used to.

Lincoln: Have you guys, have you guys hit resistance, uh, you know, in the fundraising markets, you know, because of the longer dated term.

Saisg: Yeah, so I think it's hard to say you hit resistance just because of the duration. It's an asset that people just often aren't familiar with. There's a lot of brain damage that needs to go into understanding what TRAs are, getting comfortable with them, generally seeing the value proposition. When you look at our LPs, I mean, we are looking to partner with people that see the long term vision of what we're doing, appreciate it, see the value of it, but to the extent that It's new. I mean, certainly the duration can be something that dissuades people from investing, but it's not necessarily something we've heard in those words. Gotcha.

Lincoln: Hey guys, thanks for listening. As you know, we don't run ads on this channel, so if you could really help me out, if this podcast has added any value to you or your business, please subscribe, rate, and review. I would appreciate that greatly. Thank you. You know, so the name of this podcast is called Funds That Won. So we interview investment managers across the alternative landscape, and we just want to identify those that are winning in the capital market space. So maybe I'll pass forward that question to you guys is, what have you felt like has contributed to your success at Parallax's Capital?

Saisg: Yeah, I mean, to give you maybe the more cliche answer on this, on some level, we are a startup. We're a young asset manager. We've only been around for, at this point, six years. But we're also creating an asset class, which brings its own challenges. I think the easiest rule of thumb is that you just want to always be progressing towards something. So it's like small steps of progress. That old saying that every avalanche begins with a snowflake, I think is very pertinent to what we're doing. And I had a good friend, for example, that started a pretty successful fintech company. And I remember asking him about competition. And he basically said, like, sure, it's there, but we don't really care about just the existence of competition. What matters is that we are getting a little better each day that we're moving forward. And that's common sense, but it really is true. I think people underestimate how much you can get done over a five or 10-year time frame. There's just the whole nuance of, well, people tend to underestimate compounding growth and what you can accomplish over a medium or longer time frame. And that message of just moving forward a little bit each day is something that we take to heart at Parallaxus. We're nothing if not patient and persistent in our efforts. And to put it more concretely, too, you asked about competition in the space. And it takes a lot of patience. I mean, these assets often don't come up for sale that often. There are no brokered or there are very rarely at least sales processes with brokers or bankers involved. And the sales cycle for a deal can be exceptionally long. So we closed a transaction last year. We bought a large TRA asset out of a fund. from one of the mega funds. And it had been a fund that's over 15 years old at that point, we have been in conversations with these folks for seven years, actually, since before we started. And that's how long it took to get a transaction done. Because until there's a catalyst or an impetus to do so, it can be like pulling teeth sometimes. Yeah, that that message of patience is pretty important in terms of what we do.

Lincoln: Yeah. Well, okay. I want to go back to this, understanding this investment. What would you say are the biggest risks of an investment not panning out the way you want it to?

Saisg: Yeah. So the biggest risk to a TRA investment are A, this idea of what we'd call extension risk and B, it's credit risk. So fundamentally these are credit instruments. Our counterparties tend to be large public companies. When you look at our portfolio, it's investment grade, near investment grade names. That's how we try to manage around that credit risk. But the risk of bankruptcy is always there, especially when you're thinking of an asset that has a 15 year duration. we need to be confident when we're going into an investment, or we try to be as confident as one can be, that the risk of that downside is pretty limited. And I say that because these are subordinated instruments, so your recoveries and bankruptcy will probably be pretty limited. And the second risk that we often talk about is called extension risk. So just going back to the brief overview I had on TRAs, your payments depend on the company actually having cash tax savings. But what is the underlying assumption to that is that they have taxable income to pay out.

Lincoln: Yeah.

Saisg: If they don't have taxable income for a couple of years, you don't lose these underlying tax assets. You can take advantage of them when you do have taxable income, but your payments can be pushed out. And so if you're underwriting an investment and you're expecting to be paid in two or three years, if that gets pushed out and you only start to get paid out in year five or six, that's a big risk and naturally a large hit to your IRRs.

Lincoln: Hmm. Gotcha. So the majority of your portfolio then is, is blue chip stocks, right? Probably, uh, that, you know, just have no potential, you know, at least inside of unprofitable years or bankruptcies or anything like that. Right.

Saisg: So I think it depends on how you're defining blue chip. You look at our portfolio. There are a lot of names that you'll. that people will recognize. I mean, it spans the gamut. Like you have a company like a Shake Shack to an oil field services company. It's pretty varied on that side of things. But in terms of credit quality, yeah, a chunk of our portfolio is just the companies are actually levered. There's a large portion where they're triple B rated companies. So it spans the gamut. But I would also say like there's certainly risk involved. And our CIO came up in an environment where it's not as though we look at an investment and we say, oh, that credit quality might be a little suspect. We shouldn't even invest in it. On some level, there's a price for everything. And a lot of times the price we might have in those situations is just unattractive to the counterparty, but that's not to say that there isn't a price that we would be able to underwrite that risk at.

Lincoln: Yeah. Well, sorry, because yeah, there is, you said at the beginning, this transaction takes place at the IPO, right?

Saisg: The TRA asset is created at IPO. That's right.

Lincoln: Oh, okay. So are you typically purchasing them like right after a company goes public or is this, I know you said it can be, With this most recent one, it's seven years later. What's the average length post IPO that you think you're stepping in?

Saisg: Typically, we'll transact on a TRA about two to three years after the IPO. The reason for that is without getting too deep in the details, These typically will become transactable on that time frame because the tax assets themselves are actually created when people sell out of the equity in short. And so it's pretty rare that you take a company public private equity sponsor and just sell down to zero on day one. It can be a gradual process. They're probably out of it two, three years down the road. And so that's usually our sweet spot to transact.

Lincoln: Gotcha. Cool. Fascinating. So you said that this is primarily like, you know, has more credit features. So like you're, you probably have a pretty good idea of what your return profile is going to look like on these deals. There's, I can't imagine there's a lot of standard deviation in the return profile or is there, or is there something I'm missing?

Saisg: No, no. I mean, that's definitely a fair way to view this. And especially when you think about, well, what are we buying? You have to think about the underlying tax assets. So going back to that example of $100 million of amortization deductions, that creates $25 million of tax savings. So that is the total amount of payments that you know you're buying. There's variation on, say, the time frame on the one extreme. You could have that company go bankrupt and you don't get paid, which I just had extreme. Right. You have another scenario where those payments might come in over a different time period than you're expecting. That can be the extension risk point. They take longer to come in, but they can also be accelerated. I mean, if a company is taken private, For example, these payment streams are often just accelerated. You pay it out at the time it's taken private. And so that can be very accretive to your IRRs. But ultimately, if you're asking like, well, you pretty much know what your boy will be on these investments. It's more of a question on timing.

Lincoln: Yeah. Wow. Okay, cool. Well, thanks for letting me jump into the weeds there and, and, uh, you know, ask those sort of questions. It's, it's, it's absolutely fascinating. So what does the future of Parallax's capital look like? Do you guys plan on staying in the same asset class? Do you guys plan on getting into other areas or what does the next couple of years hold?

Saisg: Yeah, so I think you can think of us as being very tied to tax receivable agreements, unsurprisingly. And if I had to give you a short, catchy response to that, it's growth, growth, growth. Like on the asset side, when we started the firm in 2017, We estimated that there was about $8 billion in what we call UPB, so undiscounted payment streams, basically, under the TRAs. Right now, that's closer to $30 billion, and that's a figure that's just growing. Because when you think about it, even at the steady state of 10% of domestic IPOs, including a TRA, which I personally think is more common than most would guess when you say TRAs. There's plenty of growth just there. And so you have more growth in the existing IPO market. You also have more growth in other types of IPOs. and you have expansion into private markets. So one thing I glossed over a little is that I noted that TRAs are created in IPOs, but it's often a part of a specific type of IPO. And that's called the up-sea IPO. This is really just when you want to take a partnership or LLC public, you use an up-sea IPO. And that is a structure that the market has grown more comfortable with. And I think you'll see more and more of CIPOs as well. So that's one driver for TRA growth. Another driver is that when you think to how I describe tax receivable agreements, These are just contractual rights. You're reallocating the tax benefits. So it's really wherever you have a tax benefit, you can use the TRA. So there's nothing stopping you from using one of these in just a traditional run of the mill IPO. And you are starting to see that happen more often now as markets have grown more comfortable with TRAs in the upsea context. You're starting to see them happen more in traditional IPOs. And that's probably the second driver. But both of those are still public markets. Private M&A is probably the third area for growth. Prime territory for TRAs. You can kind of use them like you've seen rep and warranty insurance being used. And I'd probably be surprised if when you're thinking for if we were having this conversation, say, a decade from now, that we could say that TRAs are common in transactions. It's rare to see a private M&A transaction without a TRA. And I think you'll also see them become way more common in public markets as well. And so we plan to expand out into, say, originating TRAs, so being there at the time of IPO, expanding into private markets. But as it stands, TRAs will be our focus. And On that point, though, we're not naive. We know we're the only dedicated players in the space now. I think people, hopefully, including your listeners, will listen to this and realize TRAs are an attractive asset class. And as more people have that realization, I fully expect there to be more competition to parallel access. And that's why we are just so focused on achieving scale, building a strong competitive moat. And that's what drives our focus on TRAs as opposed to, say, stretching ourselves out into other somewhat related asset classes.

Lincoln: Yeah. Wow. Incredible. Well, you know, I, I'm just fascinated of how you guys have, you know, come so far and, you know, a couple of years, I'd love to go back to maybe origination and, and, you know, how you guys got started and, you know, I just want to become, you know, a dedicated TRA specialist, you know.

Saisg: Yeah, that's, that's fair, because I can't imagine there are a lot of eight year olds in the world that are like, okay, 20 years from now, I want to start a tax receivables fund, it probably just doesn't happen. And I joined about three years ago, and our CIO tells the story better than I do. But he graduated from college when he was very young. And he ended up doing a master's in tax. And that was mostly because his parents just didn't want to set a teenager free in New York City at that age to start a banking program. And it's kind of serendipitous because that with that master's in hand when he started his career as a young banker at Citi, He was staffed on a transaction that involved a tax receivable agreement. And that was just a hundred percent solely because he had that master's in tax. Yeah. It was interesting, saw the value. And then he moved over to Lone Star Funds down in Texas and he implemented some TRAs there for his portfolio companies and help them unlock additional value. He saw the value of this, realized there was a massive opportunity to create a secondary market for that. It wasn't a strategy that necessarily fit well under the umbrella of a massive complex like Lone Star, but that's what laid the foundation for Parallaxus. So we're entirely focused on purchasing TRAs since we were founded. We've acquired stakes at about 25 at this point.

: Hey guys, so if you want to learn more about investment funds, how they work, how they're structured, if you want to become a fund manager, how I became a fund manager, visit our YouTube channel for more free value.

Lincoln: The link is in the show notes. Thank you. You said how many deals since inception?

Saisg: So we have acquired stakes in about 25 TRAs. But a key point to note is that our strategy and our sourcing, it's almost like, it's almost like something you'd see in distressed debt. So we often grab toehold positions, we build larger and larger stakes in the TRAs from there. TRAs themselves, like it's held by the entirety of the pre IPO ownership group. So private equity sponsors, co-investors, but the founders, management team members, they can all have stakes in this. And so we'll often go in, we'll purchase from one holder. If we're purchasing, we have conviction in the name. And so we'll look to purchase from other people there as well. And so it's five or so TRAs, but a lot more transactions underneath that.

Lincoln: Wow. Cool. Well, I'd love to, as we kind of wrap up here, uh, you know, I would love to ask you some questions. You know, what, what advice would you have for somebody who's, uh, you know, green and in the fund management field or getting into funds, uh, or starting their own fund? What, what advice would you have?

Saisg: I mean, on some level, it's the message of persistence. You're if you're starting a new fund, if you're working in a greenfield asset class, There are always people that are looking to say no, and that can be very disheartening. When you look back to our initial fundraise, I don't want to give out success percentages of how many investors you talk to versus how many actually come in with a commitment. But it's a pretty low percentage. And I'm sure that's pretty true for everybody. And that can be often that you can take it in two ways, right? You can take it as like, well, this is part of the hustle, or it can be an emotional journey. And each no kind of hurts you and falling into the trap of the latter can be pretty deadly. So I would be persistent, find people that will see your vision, and understand it and they can be great partners for the long term. It's actually kind of funny because there's a weird dynamic that we've sometimes had here where we'll actually be out there sourcing an investment and you go through the entire process with a TRA holder. And as they go through the process, they actually understand our strategy now in a way that maybe you don't understand through like a marketing deck and just reading through our data room. And those TRA holders have expressed interest in coming in as LPs. It's like not a dynamic that you normally see, but it's like, you see that process go through and you're like, okay, you actually understand what we're trying to build. And a lot of people will not understand or not be willing to take the brain damage. a lot easier if you're an allocator. And this isn't a good or a bad thing. I don't mean to like speak down on it, but nobody ever gets fired for investing in like the next Apollo fund or the next Sequoia fund. There's a little more risk maybe that's perceived when you go out on a limb to invest in the upstart asset manager that's investing in something that nobody's ever heard of. So it's finding those Really those four thinking partners that can be really critical and important for your growth.

Lincoln: Well, that's awesome. That's awesome. Sayeesh, a little more on a personal note here. Any habits that you feel like have contributed to your success in either personal or professional habits?

Saisg: I think the biggest thing is just really always staying curious, trying to meet everybody you can. What we do is new. There aren't any clear precedents for it. You don't really know where your next lesson is coming from. So being willing to constantly learn, I think, is a key advantage. One industry that we've actually often modeled ourselves after is the royalties space. So pharmaceutical royalties, music royalties. And on its surface, if you hear that, you're like, what on earth are you talking about? You guys are buying tax assets and you're talking about like modeling yourself after someone that's buying like Justin Bieber's music catalog. It's a bit dissonant when you say it that way. But we're both like cash yielding long term assets. Our payment streams look very similar. The royalty space is newer. There are lots of lessons to be learned there. So that's just an example of like you just don't know where you're going to learn something that can be game-changing for your business. So staying curious, kind of talking to everybody you can is just a key advantage.

Lincoln: Yeah. Awesome. I guess on the flip side of that, any business or investment pet peeves, things that just kind of drive you crazy?

Saisg: I mean, on the business side, this is maybe like a personal point or not. Parallax is the culture is we like to under promise and over deliver. I think the opposite is probably one of my biggest pet peeves of the people that over promise under deliver. I think we've all had those experiences. But on the investment side of things, I think a pet peeve is just getting your counterparties to engage is often challenging. What I mean by that is we often have to educate sellers on what they even hold. They don't even know what a TRA is sometimes. And that's not a negative thing. It's just that it's often stable to the equity. People don't realize they own it. And this will sound wild on some level, but we were talking to a founder a few months ago. We reached out because All TRAs are publicly filed. You know who the signatories are, you know who owns them. And he responded with a message of like, thanks. I have no idea what you were talking about. Probably thought we were like a Nigerian Prince email phishing scam or something of that sort. And his TRA was worth a hundred million dollars or so. Like, can you like talk about first world problems to own an asset of that size and not even realize you own it?

Lincoln: Wow.

Saisg: And that's not an uncommon phenomenon. We have to guide sellers through the process. We're educators. We try to be as transparent as we can because It's not like when you go out, sell your house with a realtor, you get 10 offers, you have a pretty good sense of what market is. This is an asset that is a liquid. You often don't know you own it. And then out of the blue, you get someone who's trying to buy it from you. That can be scary for a lot of folks. And on some level, too, like what we're selling, it's it's a vitamin. It's not a painkiller. People are bad at taking their vitamins, but everybody grabs an Advil when they have a headache. And not having a clear catalyst to transact is often a challenge. People have to put a lot of brain damage into these transactions. They have to understand what they own. They have to get comfortable with the valuation. And so if you don't have a catalyst to transact or a reason to do so, getting engagement and getting that willingness to sell can be like pulling teeth. And that's why like so often you do see us transact with funds that are nearing end of life because that is a great catalyst for a transaction. You have a fund you're trying to wind down and you're stuck with this $50, $60 million tax receivable assets that you don't know what to do with. At least there you have an impetus to sell. You'll engage with us in earnest, trying to get something done quickly, but otherwise these can be long sales cycles.

Lincoln: Yeah, I can imagine. Wow. Well, thank you so much for coming on and explaining your strategy and explaining your firm and being generous with your time today. I really, really appreciate it.

Saisg: Definitely. Thanks for having me.

Lincoln: Where's the best place for people to get in touch with you?

Saisg: You can check out our website, plxcap.com or parallaxescapital.com. Both of those should take you right to us. And we have more materials for people that maybe weren't put to sleep when I started talking about tax. We have a couple of white papers up on the site too, so hopefully a great resource. Excellent. Thank you. Awesome. Thanks, Lincoln.

Lincoln: All information shared are the sole thoughts and opinions of the author. Do not take any information as legal or financial advice. You should seek a certified accountant and a professional legal team before taking any further action. We are not selling or soliciting a security in any way, shape or form. This content is for educational purposes only and is not to be construed as financial or legal advice. Clients of FundLaunch or Black Card Capital Partners may maintain positions and securities discussed on this podcast.