Providing retail investors liquidity in a historically illiquid market to help reduce challenges in alternatives investing
NEW YORK–(BUSINESS WIRE)–Yieldstreet, a top multi-asset alternative investment platform driven to reduce friction and provide previously unattainable access to alternatives for millions of people, last week launched the first pre-term liquidity event on a private market investment and fulfilled a key objective from their recent Series C fundraising announcement.
This feat is an extension of new technology built to offer liquidity via a digital tender offer to shareholders of the Yieldstreet Prism Fund, a ‘40 Act Fund, reducing friction to an archaic process. To date, the Prism Fund has conducted quarterly tender offers beginning in the second quarter of this year and expects to continue to conduct them on a quarterly basis.1 Yieldstreet is now further applying these technologies to offer investors in private market offerings the chance to liquidate at least a portion of their investment prior to the investment’s expected term. This follows Yieldstreet’s mission to democratize alternatives by creating more liquidity events across the platform and reduce a meaningful barrier for alternative investments adoption by retail investors.
“At every turn, we are upending the traditional dynamics of alternative investing and making them more accessible,” said Michael Weisz, Co-founder and President of Yieldstreet. “Many investors have grown frustrated at the stubbornly low-yield environment we’ve been in for the last decade and have looked to alternatives to help generate above-public market returns. However, not all investors can afford to lock-up capital for some of the durations needed to extract the private market’s premium. We hope this new liquidity option enables new investors to become more confident knowing their alternative investments will be more liquid.”
To begin, Yieldstreet offered investors in a private debt note backed by consumer loans the chance to either partially or completely reduce their stakes, effectively reducing the offering’s duration to initial investors by 20 months. In time, Yieldstreet expects to offer liquidity events on additional eligible offerings and will look to offer the tendered investments on the platform to new investors, effectively creating a secondary market for alternatives.
1 The Yieldstreet Prism Fund intends to offer to repurchase shares from investors at the discretion of the Fund’s Board of Directors and depending upon the performance of the Fund. The Fund will limit the number of shares to be repurchased in any calendar year to no more than 20% of the number of shares outstanding, or no more than 5% in each quarter. If the number of shares submitted for repurchase by investors exceeds the number of shares the Fund seeks to repurchase, the Fund will repurchase shares from investors on a pro-rata basis, and not on a first-come, first-served basis.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.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.
The securities described in the prospectus are not offered for sale in the states of Nebraska or North Dakota or to persons resident or located in such states. No subscription for the sale of Fund shares will be accepted from any person resident or located in Nebraska or North Dakota.
Sign up with Yieldstreet and be the first to know about our latest offerings, recent news, upcoming events, and more.Your email will never be shared and will only be used for Yieldstreet updates. Already a Yieldstreet member? You're already set up to be notified.
Gain access to unique offerings previously reserved for the ultra-wealthy
Customize your portfolio for income, growth, or a balance of both
Get started today and earn an average IRR of over 8%
The due diligence, risk management, and product education materials are thorough, excellent, and easy to use and understand.
Excellent and unique selections that I can't find elsewhere.
The platform delivers in a very concise manner. Easy to get a clear understanding at a glance from the web or mobile app.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.