Yieldstreet Funds Evolution
We are proud to be at the forefront of making alternatives accessible to retail investors, constantly challenging ourselves and the industry to bring new, modern investment opportunities forward to help people to gain financial independence.
While Yieldstreet started off with single offerings in individual asset classes – real estate and legal – in the five years since our launch, we have grown to be the only direct-to-consumer fintech offering six, and soon to be seven, alternative asset classes with the additions of marine, art, consumer and commercial, providing access to both potentially higher yielding investments and significant opportunity for diversification. Adding to the healthy range of asset classes and investment products on the platform, momentum is building in new funds being offered. We take a moment here at the start of 2021 to highlight Yieldstreet’s evolution from single offerings to the present mix of diversified investment products and services.
As we like to say, innovation is core to our DNA. Following our acquisition of Athena Art in 2019, we pioneered a unique way to invest in art. High net worth individuals have long known and enjoyed the value and returns that rare collectibles like exotic cars, wines, watches and artworks provide. Now, through Yieldstreet’s art fund, Diversified Art Portfolio I, with a single investment, retail investors can gain exposure to 10 diversified pools of blue-chip artworks created by artists such as Andy Warhol, Jeff Koons and Roy Lichtenstein. Unlike owning fractional shares of an artwork, the Art Fund diversifies risk across multiple artworks of renowned artists.
In March 2020 we introduced a distinctive multi-asset class fund, the Prism Fund. With a single investment, investors can gain exposure to a diversified range of assets – in this case, holdings in six asset classes: Art, Commercial, Consumer, Legal, Real Estate, and Corporate preferred bonds. This range of sector diversity is unique to the Prism Fund among fintechs offering access to private markets. And through the Prism Fund, Yieldstreet is the only direct-to-consumer platform offering legal finance offerings previously unavailable to most investors.
In our quest to democratize access to alternative investments for all retail investors, in August 2020 we opened the Yieldstreet Prism Fund to non-accredited investors. In addition, we lowered the minimum initial investment requirement. Now accredited and non-accredited investors can participate in the fund, which offers a target quarterly distribution rate of 8%1, for an initial minimum investment of $1,000.
We continue to deliver on our strategy to create more diverse opportunities to invest. In December, we launched our first Qualified Purchaser fund focused on specialty finance. Comprised of three different transactions, the fund raised $14 million in a few days. In January 2021, we launched our first fund focused on legal finance and we expect to launch a third fund in February that will focus on the potential global recovery in the aviation industry.
As we approach the six year mark, $1.6 billion worth of investments have been funded by Yieldstreet and more than $800M has been paid back in principal and interest to investors. Staying true to our innovation focus to give broader access to retail investors across multiple asset classes, we have already funded over $200M in four different asset classes (Art, Legal, Marine and Real estate).
The Yieldstreet community is over 250,000 members strong. We continue to seek, design and offer a collection of alternative investment opportunities that cannot be found elsewhere.
With the expanding opportunities in Yieldstreet funds, it has never been easier to build a diversified portfolio of alternatives with Yieldstreet, the only platform that is multi asset class at its core. We expect to announce some new additions in this coming year. In the near future, we will announce a new asset class that will involve the first third-party fund on the platform. Stay tuned. We look forward to sharing the details.
1. Reflects the quarterly distribution of $0.20 declared by the Fund’s Board of Directors on November 12, 2020, to be paid on March 17, 2021, to stockholders of record as of March 10, 2021 and is based on the Fund’s net asset value of $9.92 per share as of September 30, 2020. 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.
What's Yieldstreet?
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.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]