Foundation Building Materials TRA Termination

NEW YORK CITY, Oct. 20, 2022 / PRNewswire / — Parallaxes Capital Management (“Parallaxes”) is an alternative asset manager and, since 2017, has raised four funds dedicated to Tax Receivable Agreements (“TRAs”). As the market leader in monetizing TRAs, Parallaxes is dedicated to increasing the visibility and transparency of TRAs which remain an often overlooked and misunderstood asset class. In the vein of creating greater visibility into the TRA ecosystem, Parallaxes is pleased to highlight a notable development in the market as Foundation Building Materials, Inc. (“Foundation Building Materials”) previously terminated its TRA.

Foundation Building Materials disclosed that, in connection with its acquisition by American Securities LLC, Foundation Building Materials made an aggregate cash payment of approximately $75 million to its TRA holder to terminate the TRA. The Foundation Building Materials TRA provided for the payment of 90% of the cash savings realized from certain tax attributes, including savings from (i) the utilization of depreciation and amortization deductions, (ii) net operating losses and (iii) tax credits.

Parallaxes views TRAs, including the Foundation Building Materials TRA, as a valuable tool to reduce certain moral hazard problems and informational asymmetry inherent in a company’s public offering. TRAs help ensure that pre-IPO owners are economically aligned with new public shareholders and incentivize pre-IPO owners to pursue an IPO structure that provides the company with ongoing tax benefits. Parallaxes anticipates enhanced awareness and understanding of TRAs will drive increased market adoption.

About Parallaxes Capital

Parallaxes Capital Management (“Parallaxes”) is the premier investment firm focused exclusively on monetizing Tax Receivable Agreements (“TRAs”). Parallaxes offers private equity sponsors, co-investors and management team members solutions to achieve liquidity, diversification and optionality from their TRAs. Parallaxes was founded in 2017 and is comprised of experienced investment professionals from leading private equity and growth equity firms. To learn more, please visit www.plxcap.com

Disclosures

This press release should not be regarded as representative of an official position or statement of Parallaxes or any related entity.

Media Contact:

Harrison Hsueh
operations@plxcap.com