Before an investment opportunity makes it onto the Yieldstreet platform, it undergoes a stringent four-step vetting process designed to comprehensively review an investment opportunity through various risk lenses.
Our multi-step process is the reason we turn down most investment opportunities we evaluate. In fact, less than 5% of all investment opportunities evaluated by Yieldstreet made it to investors 2023 year-to-date.1
The Yieldstreet originations team screens each opportunity and prospective partner. Yieldstreet leverages its network to access opportunities from multiple sources, including partner originators with successful track records.
We eliminate the potential risks of doing business with those subject to prior scrutiny by others – including past material litigation or even certain government investigations into companies and the decision makers behind them.
After the first screening, both the originations and investment teams evaluate a multi-step review of the track record, experience and reputation in their respective asset classes.
We take a structured, rigorous and holistic approach when scrutinizing originators and opportunities. Our structured assessment is based on multiple factors:
The opportunity is then passed along to the respective Yieldstreet investment team. For example, a multi-family equity ownership opportunity would get passed along to Yieldstreet’s real estate team.
The team will evaluate some of the following components of a deal:
Corporate and investment overview
Underwriting and allocation
Documentation and legal
Yieldstreet carries out deal transaction “post mortem” reviews to compare outcomes to underwriting thesis to ensure continual learning and improvement.
For each investment, the respective Asset Class team prepares a detailed Investment Committee memo designed to help identify any potential risks. They scrutinize and challenge the investment team’s conclusions.
The Green Light Committee (GLC) Is the next opportunity for the teams to identify key considerations and risks that the investment team will need to address and review before moving forward. The Credit Committee (CC) considers opportunities later in the process, ensuring that any issues or questions raised have been appropriately addressed. The Investment Committee then considers the opportunity once more, and will only clear an opportunity for the Yieldstreet platform following a vote of the Investment Committee.
Once an investment opportunity has made it to the Yieldstreet platform, it still is subject to what we consider the most important vetting stage — our investors’ own decisions. Yieldstreet is ultimately all about empowering investors to exercise their own judgment, based on their own investment philosophies, and educated by the great wealth of information available to all of us.
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.