Private market planning checklist for 2023

December 16, 20224 min read
Private market planning checklist for 2023
Share on facebookShare on TwitterShare on Linkedin

As we start out 2023, it can be a good time to take inventory, help maximize tax savings, and plan for the year ahead. In consultation with your advisors, review the following private market planning considerations from our investment professionals. 

1. Evaluate portfolio diversification

Similar to a portfolio of stocks and bonds, an alternative investment portfolio is typically most effective when highly diversified. 

Start by evaluating diversification across asset classes. Are you highly concentrated in a particular alternative asset class? Or is your portfolio spread across multiple asset classes like real estate, art, private credit, legal, structured notes, and more? 

Then, consider how your portfolio is diversified across the following attributes: 

  • Range of return targets, and therefore risks 
  • Debt vs. equity 
  • Time horizons
  • Liquidity 
  • Sponsors/originators/fund managers

2. Plan for upcoming maturities 

Staying invested and minimizing cash drag are key contributors to long term wealth generation. For the year ahead, consider mapping out your expected investment maturities to see when you will have opportunities to reinvest. Keep in mind, target maturity dates may change throughout the lifetime of your investment. 

Yieldstreet now notifies investors ahead of an upcoming maturity or a large partial repayment so you can begin evaluation of your next investment opportunity. For some offerings, you can opt to immediately roll over your investment into a new opportunity. 

In planning for future investments, you may consider looking to spread out target maturity dates to avoid an unintended significant liquidity event. 

3. Review income needs 

Many of our investors use income-generating assets to support their ongoing lifestyle expenses. Could income-generating alternatives play a role in your overall strategy for 2023?

Investments like structured notes, private credit, real estate debt, art debt, legal finance, and more generally target regular income. Or consider allocating to a multi-asset class fund to target consistent quarterly payments. 

4. Leverage a tax-advantaged account 

Does a portion of your Roth or Traditional IRA account contain private market investments

For growth-focused investments, high alternative asset appreciation could grow tax-free with a Roth IRA. Or with a traditional IRA, realize gains in a potentially lower tax bracket. 

For investments that generate regular payments, an IRA can help reduce higher ordinary income tax exposure through deferral of recognition.

5. Examine where your cash is held 

As a result of the Federal Reserve’s aggressive rate hiking spree, investors have significantly better options for storing cash heading into 2023. 

The Yieldstreet Wallet, an FDIC-insured savings account held at Evolve Bank and Trust, now earns 2.75% APY. This is significantly above the average savings account APY of 0.21%, according to the FDIC as of Dec. 1.

If you are seeking a higher yield, our Short Term Notes program is commonly used by investors seeking to house their cash. Notes pay monthly income, have a net annualized yield from 3.75% to 6% 1, and terms as short as three months.

Holistic investment portfolio review

2022 exposed significant gaps in the traditional 60/40 portfolio as stocks and bonds were both simultaneously in decline. As we face ongoing geopolitical uncertainty, inflation and public market volatility, consider if increasing your allocation to private markets could be advantageous. 

Investment managers often recommend allocating up to 20% of a portfolio to private markets. What is your current allocation? 




Yieldstreet cannot and does not provide tax advice and this communication is for illustrative purposes only and is not intended to be – and should not be construed as – tax advice. Further, this communication should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, financial, accounting, legal, regulatory or compliance advice. Investing in private markets and alternatives is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.

1. In particular, U.S. tax code has several specific rules related to tax-loss harvesting and related matters. Please consult a tax professional for advice specific to your situation. 
2. Target Returns represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. Target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modeling error, or other reasons. Gross targets do not reflect the impact that the deduction of advisory fees and other expenses would have on returns.

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetalternativeincomefund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

9 Statistics as of the most recent month end.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and are willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Plaid, Orum.io and Footprint and none of such entities is affiliated with Yieldstreet. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure