Yieldstreet Portfolio Snapshot: Q1 2022
We believe transparency is crucial to develop a trustworthy, long-lasting relationship with current and future investors, on our journey to become the one-stop shop alternative assets platform. Below is our Q1 2022 snapshot, with insights into Yieldstreet’s current overall portfolio and inception-to-date performance. In addition, please refer to our Statistics page for additional context and performance data.
To date, Yieldstreet’s investments have returned 9.7% annualized, net of fees3, approximately in line with their weighted average targeted return of 10.0%. As of Q1 2022, only fixed income investments previously offered on the platform have matured, and are therefore included in the above mentioned performance figure, which does not reflect future potential returns from different investment types. Current offerings – which include both debt and equity – may have different, in some circumstances potentially higher, return targets.
Portfolio Snapshot & Trends
While Yieldstreet’s mission of offering investors access to alternative investments has been consistent since inception, the composition of the types of offerings available to investors has changed.
We continued to implement our vision in 2021, as we expanded our product offerings by adding several third-party funds across private equity, venture capital & distressed strategies – featuring established managers – as well as our first two diversified art equity funds, and new structured notes. Reflecting investor demand in an environment of low interest rates, we successfully increased equity offerings on the platform, particularly in real estate.
In line with prevailing macroeconomic conditions at the inception of the quarter, we continued our push towards offering additional equity products, including a new art equity fund and new commercial real estate properties. Amidst rising inflation, tightening financial conditions and more volatile markets, we launched new structured notes offering a yield comparable to our previous offerings despite their shorter duration.
Among our notable achievements, we committed an additional $45 million in potential third-party fund opportunities in Q1 2022, bringing on board what we believe to be best-in-class partners across different asset classes.
In the crypto space, we reinforced our successful partnership with Pantera, a renowned, cutting-edge crypto manager. The new offering – for which we are targeting a 50% return – offers exposure to early stage tokens in addition to Bitcoin and Ethereum, with potential to capture alpha in a growing market.
In addition to that, we launched our Growth and Income REIT, an opportunity for investors to gain exposure to – primarily – equity investments in commercial real estate properties across key U.S. markets and property types.
Going forward, Yieldstreet believes alternative assets are likely to play a key role in a highly inflationary environment. According to Investment and Pensions Europe, “more than four in 10 pension funds plan to increase the inflation sensitivity of their portfolio in 2022… through increasing exposure to infrastructure, private debt and real estate4.”
Learn more about our due diligence process
At Yieldstreet, we remain committed to the best potential investment outcome. However, investments do not always perform as expected. As our team continues to implement its best practices, we have updated our communications policy to better reflect the performance status of our products.
For a deeper dive, additional market commentary, and further information, please check out our blog page.
Previous portfolio snapshot: Q4 2021
Past performance is not indicative of future results. All data presented in this communication is dated as of March 31, 2022. Please note any leverage used is not included in the Asset Class by Dollars Invested data. Our Statistics page includes additional context and performance data. For any further questions, please contact us at [email protected]
1 Please refer to our communication policy for additional details on the meaning of Performing and Modified Outlook performance categories
2 Marine Default refers to the outstanding defaulted investment offerings that were originated by GMTC. Yieldstreet continues to press forward on its pursuit to collect on the $85M final judgment entered by the High Court of England in favor of the YS SPV against the Borrowers through several multi-jurisdictional and multi-pronged recovery strategies. These recovery strategies include, but are not limited to: enforcement of the High Court judgment in U.K. to pursue the Guarantor’s real property; global asset tracing; litigation against the originator; and pursuit of a Mortgagees Interest Insurance Claim covering the underlying vessels.
3 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 Mar 28th, 2022, after deduction of management fees and all other expenses charged to investments.
This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor 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. Any link to a third-party website (or article contained therein) is not an endorsement, authorization or representation of our affiliation with that third party (or article). We do not exercise control over third-party websites, and we are not responsible or liable for the accuracy, legality, appropriateness, or any other aspect of such website (or article contained therein).
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]