Yieldstreet is an American company based in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
.
The company focuses on expanding access to private market investment products.
Yieldstreet provides investments in art, real estate, legal, and various other industries.
History
Yieldstreet was founded by Milind Mehere and Michael Weisz.
Mehere was previously a co-founder of
Yodle
Web.com Group Inc. was an American company headquartered in Jacksonville, Florida that provides domain name registration and web development services. Established in 1999 by Darin Brannan, the company was known as Website Pros Inc. until early 2 ...
and Weisz had held leadership positions with Soli Capital and American Medical Concierge across the specialty finance spectrum.
Yieldstreet acquired Athena Art Finance from
The Carlyle Group
The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and pri ...
for $170 million in April 2019. Yieldstreet then acquired WealthFlex to integrate a
self-directed IRA functionality for their investors later in 2019.
The Yieldstreet Prism Fund was introduced in March 2020 as a multi-asset
closed-end fund
A closed-end fund (CEF) is a fund that raises capital by issuing a fixed number of shares which are not redeemable, and then invest that capital in financial assets such as stocks and bonds. Unlike open-end funds, new shares in a closed-end fund ...
with quarterly distributions,
that contains a blended portfolio of
asset classes and cash, allowing investors to access multiple alternative asset classes with a single investment.
Yieldstreet's individual offerings are typically only available to accredited investors, but the Yieldstreet Prism Fund does not involve any income or net worth minimums.
In November 2021, Yieldstreet launched the Art Equity Platform, which holds a portfolio of artwork from after
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, as well as
contemporary and modern contemporary art. People are able to invest in the art and earn returns of 15 to 17 percent.
In April 2022, Yieldstreet announced that it would allow its users to invest in startups, and that the first companies included were
Flutterwave
Flutterwave is a Nigerian fintech company that provides a payment infrastructure for global merchants and payment service providers across the continent.
History
The company was founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola, and Adel ...
and Fetch Rewards. The arrangement is made in partnership with
Greycroft
Greycroft is an American venture capital firm. It manages over $2 billion in capital with investments in companies such as Bird, Bumble, HuffPost, Goop, Scopely, The RealReal, and Venmo. Greycroft was founded in 2006 by Alan Patricof, Dana Sett ...
.
In August 2022, Yieldstreet announced the closing of a $400 million credit facility from Monroe Capital, which is dedicated to pursuing new and compelling investment opportunities that further widen the scope and number of available offerings on Yieldstreet’s platform.
In November 2023, Yieldstreet has announced the acquisition of Cadre, an online real-estate-focused investment platform aimed at institutional and high net worth investors.
Track Record
As of 7/18/22, Yieldstreet has achieved 160 matured offerings for their investors, with $1.7 billion in matured principal at a realized net annual return of 9.8%.
In 2023, Yieldstreet crossed $2 billion in principal and interest returned to their investors since inception.
Marine Default
Yieldstreet attracted attention in 2020 for an $89 million default in their marine portfolio, with Yieldstreet alleging in
federal district court in
Manhattan
Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
that the borrower, the Lakhani family, "literally lost track of many vessels, some larger than three football fields."
Shortly thereafter, Yieldstreet obtained an injunction from the
UK High Court
The High Court of Justice in London, known properly as His Majesty's High Court of Justice in England, together with the Court of Appeal of England and Wales, Court of Appeal and the Crown Court, are the Courts of England and Wales, Senior Cou ...
that froze $76.7 million in Lakhani family assets.
The recovery remains ongoing.
[{{cite web , last1=Boston , first1=Claire , title=YieldStreet Investors Are Learning the Meaning of High Risk , url=https://www.bloomberg.com/news/articles/2020-05-08/yieldstreet-investors-are-learning-the-meaning-of-high-risk , website=]Bloomberg.com
Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg Televi ...
, date=May 8, 2020
References
External links
* yieldstreet.co
Companies based in Manhattan
Investment companies based in New York City