Yieldstreet Portfolio Snapshot Q3 2022

November 2, 20226 min read
Yieldstreet Portfolio Snapshot Q3 2022
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Yieldstreet values its commitment to providing transparency into our portfolio’s growth and performance. Please see below for the Q3 22 quarterly portfolio snapshot. 

Key Summary Metrics

In the third quarter of 2022, Yieldstreet’s total portfolio AUM grew $227M or 8.2%, surpassing $3B in total dollars raised. This milestone was achieved through offering 28 new investment opportunities to Yieldstreet’s user base of over 400,000 individual members, while realizing maturity on 11 investments over the quarter with a weighted average IRR of 13.75%, excluding short term notes.

Yieldstreet offered investors access to 28 unique investments over the quarter, across seven unique asset classes. This included several structured income note portfolios, which offer downside buffers to underlying equity values while paying an interest coupon, in addition to an opportunity to invest in two Boeing aircraft through a United Airlines leasing opportunity.

For current available offerings, review the offerings page.

In addition, 11 investments matured throughout the quarter, including Williamsburg Multi-Family Restructuring Equity which realized a 41% IRR to investors. Additional information around this investment can be found here.    

Portfolio Composition

Yieldstreet’s portfolio growth is predicated on the mission to provide frictionless access to the most diversified set of private market asset classes.

Total raised AUM surpassed $3B in Q3 22, with $1.5B of Active AUM and $1.5B of Matured AUM. This represents a 57.3% increase as compared to a year prior, and a 8.2% increase as compared to a quarter prior.

Total raised AUM was diversified across asset classes, with the largest increases occurring in Short Term Notes (+$69.1M), Private Credit (+$56.2M), and Structured Notes (Other, +$31.9M). These portfolios have exhibited strong demand, given shorter target durations and higher relative target yields.

As of Q3 22, Real Estate remains the largest asset class, making up 25.5% of the total active AUM followed by Private Credit (15.4%). Private Equity total active AUM of $35M is expected to grow over the next two quarters, as commitments are called and offered to investors. 

Portfolio Performance

As of Q3 22, Yieldstreet has realized 239 matured investments over six asset classes, leading to an inception to date weighted average IRR of 9.7%, excluding short term notes.

In total, Yieldstreet has realized returns on 239 investments inception to date.

Zooming into Q3 22, Yieldstreet realized 11 offerings, with a weighted average return of 13.7% excluding short term notes.

Past performance is not a guarantee of future performance. Annualized performance is calculated using the weighted average target and realized net return of each matured. Annualized returns are calculated using an internal rate of return (IRR) calculation.

Investment level inception to date returns are available on the Yieldstreet Platform-Wide Performance page. 

Yieldstreet’s portfolio as a whole continues to perform. Modified Outlook investments make up 3.6% of total outstanding AUM, Marine Default makes up 2.5%, and Realized Loss remains below 1%. 

Even with recent market volatility, including the rapid increases observed in interest rates, Yieldstreet’s overall performance has remained resilient. Yieldstreet provides monthly updates to applicable investors on all Modified Outlook and Marine Defaulted transactions.

In addition, Yieldstreet’s restructuring efforts resulted in a material intra-quarter paydown on a Commercial Real Estate Modified Outlook transaction through a credit bid process under supervision of the Bankruptcy Court. Yieldstreet believes this transaction represents a successful recovery process given the adverse circumstances encountered, while recognizing that this investment has not achieved the targeted IRR. This investment remains outstanding, as the final property making up the fund is marketed for sale to finalize the recovery. 

Investment in Focus

Diversified Art Debt Portfolio II

Invest in a scheduled monthly-interest loan that is secured by 38 artworks by 36 different artists.

Key Stats:

  • Target Return: 10%
  • Target Term: 38 Months
  • Product Type: Asset Backed Loan (ABL) 
  • Loan-to-Value (LTV): ~55% 

Alternative Markets in Focus

As public markets continue to experience heightened volatility, demand for alternative investments continues to grow, however access remains challenged. 

Yieldstreet’s CEO and Founder Milind Mehere sat down to talk with RIA Intel on how Yieldstreet can help fill the gap.

Yieldstreet offers investors the ability to diversify exposure to alternatives across a wide dimension of asset classes, including products with certain downside protections, such as Structured Notes, as well as debt collateralized by assets, such as asset backed loans or commercial real estate debt. These products can provide yield as investors assess the changing broader macro-outlook.

What we’re reading:

  • J.P. Morgan has put out their Guide to Alternatives for Q3 2022
  • Q322 Bank Earnings commentary pointed to continued business and consumer credit strength, with uncertainties ahead
  • A new Bank of America survey finds that the young and wealthy see more potential in assets like cryptocurrency, real estate, and private equity, with individuals aged 21 – 40 allocating only a quarter of their investments to equities.

Previous portfolio snapshot:  Q2 2022

Past performance is not indicative of future results All data presented in this communication is dated as of September 30, 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].

Please refer to our communication policy for additional details on the meaning of Performing and Modified Outlook performance categories. 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 referring to 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. 

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.

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 the UK 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.

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 websites (or articles contained therein).

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.

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