Yieldstreet
Yieldstreet is an American company based in New York City.[2] The company focuses on expanding access to private market investment products.[2][3] Yieldstreet provides investments in art, real estate, legal, and various other industries.[4][5][6]
| Industry | Financial services Financial technology Real Estate Investing Private Market Assets |
|---|---|
| Founded | 2015 |
| Founders | Milind Mehere Michael Weisz |
| Headquarters | , |
Key people | Milind Mehere, Co-Founder and CEO Michael Weisz, Co-Founder and President[1] |
| Website | yieldstreet |
History
Yieldstreet was founded by Milind Mehere and Michael Weisz.[4][7][8] Mehere was previously a co-founder of Yodle and has led the company since it was started.[9]
Yieldstreet acquired Athena Art Finance from The Carlyle Group for $170 million in April 2019.[10] Yieldstreet then acquired WealthFlex to integrate a self-directed IRA functionality for their investors later in 2019.[4]
The Yieldstreet Prism Fund was introduced in March 2020 as a multi-asset closed-end fund with quarterly distributions,[11] that contains a blended portfolio of asset classes and cash, allowing investors to access multiple alternative asset classes with a single investment.[11] 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.[3][5][12]
In November 2021, Yieldstreet launched the Art Equity Platform, which holds a portfolio of artwork from after World War II, as well as contemporary and modern contemporary art. People are able to invest in the art and earn returns of 15 to 17 percent.[13]
In April 2022, Yieldstreet announced that it would allow its users to invest in startups, and that the first companies included were Flutterwave and Fetch Rewards. The arrangement is made in partnership with Greycroft.[14]
In May 2022, Yieldstreet announced the launch of the company’s new consumer tool, Yieldstreet’s crypto wallet. This tool allows investors to deposit Bitcoin and Ethereum into a custodian-managed secured account with the option to convert the cryptocurrency into fiat currency to invest in Yieldstreet’s offerings.[15]
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.[16]
Track Record
As of 7/18/22, Yieldstreet has achieved 260 matured offerings for their investors, with $1.7 billion in matured principal at a realized net annual return of 9.8%.[17]
In 2023, Yieldstreet crossed $2 billion in principal and interest returned to their investors since inception.[18]
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 that the borrower, the Lakhani family, "literally lost track of many vessels, some larger than three football fields."[19]
Shortly thereafter, Yieldstreet obtained an injunction from the UK High Court that froze $76.7 million in Lakhani family assets.[20] The recovery remains ongoing.[19]
References
- "40 Under 40 2020: Michael Weisz".
- Tan, Gillian; Boston, Claire (February 25, 2021). "YieldStreet Weighs Options Including Sale, Starting Own SPAC". Bloomberg News. Retrieved October 7, 2021.
- Fuscaldo, Donna (January 8, 2019). "YieldStreet's Alternative Investment Marketplace Booms In Times Of Volatility". Forbes. Retrieved October 7, 2021.
- Azevedo, Mary Ann. "Yieldstreet raises $100M as it mulls going public via SPAC, eyes acquisitions". TechCrunch.
- Lim, Dawn; Michaels, Dave (August 12, 2020). "Two U.S. Agencies Examining Investments Sold by Crowdfunding Site YieldStreet". The Wall Street Journal.
- Saul, Josh; Boston, Claire (November 8, 2018). "Populism Comes to Wall Street: YieldStreet wants to make exotic bets available to individual investors online". Bloomberg L.P.
- Baer, Drake (June 19, 2020). "On Tuesday we're talking with YieldStreet CEO Milind Mehere about how to find product-market fit fast, the essentials of startup leadership, and how fintechs can navigate the downturn". Business Insider.
- Baer, Drake (June 23, 2020). "Yieldstreet founder Milind Mehere". Insider Inc.
- Verma, Anuradha (March 4, 2016). "Yodle co-founder Milind Mehere backs realty broking firm Coldwell Banker India". VCCircle.
- Dafoe, Taylor; Schneider, Tim (April 10, 2019). "Athena Art Finance Was Founded With $280 Million in Funding. It Was Just Sold for Only $170 Million". Artnet.
- Fuscaldo, Donna (February 18, 2020). "BlackRock Makes Alternative Investment Push With YieldStreet Partnership". Forbes.
- Fitzgerald, Maggie (June 2, 2021). "Alternative investments platform Yieldstreet raises $100 million amid pandemic growth". CNBC.
- Frank, Robert (2021-11-12). "Yieldstreet launches fund for smaller investors to bet on art". CNBC. Retrieved 2021-12-02.
- Tony Zerucha (April 12, 2022). "Yieldstreet Adds Startup Investments in Greycroft Partnership". Crowdfund Insider. Retrieved April 15, 2022.
- "Yieldstreet's Crypto Wallet Helps Investors Store and Convert Bitcoin and Ethereum". Business Wire. 11 May 2022. Retrieved 12 May 2022.
{{cite web}}: CS1 maint: url-status (link) - "Yieldstreet Closes $400MM Credit Facility From Monroe Capital". ABF Journal. 9 August 2022. Retrieved 9 August 2022.
{{cite web}}: CS1 maint: url-status (link) - "Yieldstreet Platform-Wide Performance". Yieldstreet. 21 February 2023. Retrieved 9 Feb 2023.
{{cite web}}: CS1 maint: url-status (link) - "Yieldstreet, By The Numbers". Yieldstreet. 9 February 2023. Retrieved 9 Feb 2023.
{{cite web}}: CS1 maint: url-status (link) - Boston, Claire (May 8, 2020). "YieldStreet Investors Are Learning the Meaning of High Risk". Bloomberg.com.
- Boston, Claire (October 6, 2020). "YieldStreet Wins $77 Million From Family It Accused of Fraud". Bloomberg Law.