A United States individual has a net worth of assets exceeding $1 million which excludes the value of their primary residence. Full description here.
An offering that is allocated to an investor comprises a certain percentage of the total offering vehicle, based on investment amount and split pro-rata. Read more about it here.
Division of product offerings by an investment firm i.e. YieldStreet enables investors to easily navigate offerings that suit their individual preferences. Here you can learn more.
Asset-based investment, sometimes referred to as asset-based financing, is a form of investment that collateralizes company securities to obtain a loan. Find out more.
Carried interest acts as the basic compensation for a fund manager. It’s a share of the profits from the investment that is paid to the investment manager. Carried interest explained in full here.
Loans in which the borrower will offer assets as collateral to secure the loan. If the borrower defaults the lender will have ownership of those assets. Find out more about collateral here.
The accumulated interest of a loan or deposit for previous periods and on principal payments made. It’s also simply known as “interest on interest.” We expand here.
A legal written agreement is signed by the lender, agreeing to repay any money owed to the creditor (borrower) to avoid court action to resolve disputes. Learn more about it here.
When a plaintiff is represented on a contingency fee basis, no legal fees are paid until they have won their case, the lawyer receives a percentage thereof. Broader description available here.
A mutual relationship between two different investments that have a similar response to market influence and market-related forces. A full description here.
Cost of capital refers to the minimum rate of return a business or company has to generate before a new purchase, or investment starts to make money. Find out more.
An indenture that is entered by a borrowing party or individual to proclaim which activities may or may not be carried out, these include certain agreements. Here you can learn more.
When a borrower is unable to make repayments on their loan according to previously agreed-upon terms and conditions, known as being “in default.” Default explained here.
Payments made by any private or public fund to investors. Companies use disbursements to complete the final payment on any form of goods and expenses. Examples available here.
Typically known as an HNWI, this individual has financial assets, excluding primary residence that exceeds the $1 million and does not surpass $5 million. HNWI described in full.
The method used to evaluate the attractiveness of an investment opportunity. The IRR presents cash flows equal to zero. Learn more here.
All tangible goods are housed by a business with the intent of it being sold as part of business operations, for example, food, clothing, car parts, etc. A full description here.
Asset-backed lending makes use of company inventory as a form of collateral to help secure a loan. Inventory can be seized when borrowers default. Full description available.
The investment memorandum acts as a profile considering all investments to determine whether the offerings will meet the client’s desired needs. Example of investment memorandum included here.
Known as a letter of direction gives the recipient-specific rights regarding the sender or writer’s finances, written to a bank or family members. LOD explained better here.
A legal action in which a lender seizes the property of the borrower that’s failed to make payments on a loan. Property is held until repayments are made. A broader description is available below.
The rate at which assets owned by an individual or company can easily be sold off for cash. These can include publicly traded stock or Treasury Bills. Learn more about liquidity here.
Used to calculate and evaluate collateral. This refers to the loan amount and the underlying assets which determine the cushion the borrower has. Here is a full LTV description.
The civil action of numerous plaintiffs against selected or multiple corporate defendants. These civil grievances are resolved in state or federal courts. Mass Tort fully explained here.
The lender pledges a form of collateral, i.e. real estate or property, for which the borrower is not personally liable. More details are available here.
Bylaws described in an operating agreement, members and investors agree to operate the newly formed SPV. These apply to Yieldstreet offerings. Learn what to include.
Originators assist with determining the terms of the loan with the borrower, performing due diligence. The originator acts as the liaison for the borrower.
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An originator that sells parts of a loan to individuals, businesses, and financial investment firms. Participation can be 100% or as little as 5%. Learn about this concept.
An agreement was signed by the originator and investors. With YieldStreet, managers of the SPV sign the agreement as a proxy to purchase a loan percentage. See a more detailed description here.
The frequency represents how often investors should receive forms of principal or interest repayments on their investments. Here you can find out more.
An individual or group which begins a new case in the court of law against a defendant, both parties are represented by an attorney or lawyer. The definition is expanded here.
Funding is allocated to a plaintiff before any compensation from the settlement of the case can be accessed or received by the plaintiff. Description expanded.
Non-recourse funding plaintiffs receive while awaiting to start or resume the trial. This funding is allocated for personal use and legal fees. Explained in full.
A Latin phrase that describes a proportionate allocation of a certain amount. This will include a fraction amount according to its share of the whole. Pro-Rata explained.
A portion or part of the debt is paid off first secured with collateral. Normally offered by corporations, Limited Liability Companies or a Limited Partnership. More on this topic.
The order in which a company is required to pay off debt is usually above junior debt, applicable to companies who are operational or who have filed for bankruptcy. We expand here.
An agreement or resolution between two or more disputing parties about a legal matter. Settlement is agreed upon before the commencement of a court case. Topic expanded here.
A company can form an SPV, a separate entity from the primary company which is used to secure and privatize any form of company investment. Examples of SPV.
An agreement signed by all investors looking to purchase a portion of a Special Purpose Vehicle. Each investor will have pro-rata ownership of the SPV. See more here.
A legal financing statement filed by a creditor allows them to give notice that it has or may have an interest in the personal property of a debtor. Examples available here.