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- Accredited Investor
- To be considered an accredited investor under the federal securities regulations of the United States, an individual must have a net worth (or joint net worth with his or her spouse) exceeding $1 million, or assets under management greater than $1 million, excluding the value of his or her primary residence.
- Allocation
- The allocation for an investor in an offering is the percent ownership of the offering vehicle. It is based on the investment amount relative to all investors in the deal and is split at a pro-rata basis.
- Asset Class
- YieldStreet breaks down the opportunities we offer our community of investors into different asset classes. While all of our deals fall within the speciality finance asset class, which is different than the stock or bond portion of an asset portfolio. At YieldStreet we like to further define our offerings into asset classes to allow our community of investors to enable our investors to quickly and easily find offerings which fit their individual preferences.
- Asset-based Investments
- Asset-based investing is an investment in which the loan which a person has invested in is secured by an asset or a group of assets.
- Carried Interest
- Carried interest or carry, is a share of the profits of an investment or investment fund that is paid to the investment manager. Because the amount of carried interest the manager earns is tied to the performance of the investment, carried interest is essentially a fee that motivates the manager and compensates him or her for enhancing performance. Carried interest typically comes out to 20-25% of a fund’s annual profit. According to Wikipedia, the term can be traced to the 16th century, when European ship captains were paid 20% of the profit from goods they transported to Asia and the Americas to compensate them for the costs and risks of their journeys.
- Collateral
- YieldStreet offerings are on loans that are asset based, this means the borrower offers certain assets as collateral for the loan. Meaning if the loan is in default the lender becomes the owner of those assets.
- Compound Interest
- Compound interest is interest calculated not only on the principal of a deposit or loan, but also on the accumulated interest of previous periods of a deposit or loan. Compound interest is as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal.
- Confession of Judgement
- Confession of judgement is the legal term for a written agreement signed by a defendant who is agreeing to pay a set amount of damages to a plaintiff and accept liability for damages caused to the plaintiff. The confession of judgement enables both parties to avoid going to court to resolve their dispute. A confession of judgement is also sometimes called a cognovit note. These are used by creditors to protect themselves from protracted legal battles with borrowers who default. A lender that provides a commercial credit account to a business, for example, may require the business owner to sign a confession of judgement so that if the business ever defaults on the credit account, the lender does not have to hire an attorney and initiate a lawsuit to get its money back. A confession of judgement clause in the borrowing agreement will permit the creditor to immediately apply to the court for a judgement against the business owner without permitting the owner to contest the judgement.
- Contingency Fee Representation
- When a plaintiff is represented on a contingency fee basis the client is out little or no upfront expenses. The plaintiff does not pay legal fees unless and until they win. At such time the lawyer receives a percentage of the plaintiff’s recovery as the lawyers fee. If a plaintiff loses the case, there is no legal fee at all for the lawyer. Contingency fee agreements are customarily used for cases wherein a plaintiff is seeking money damages for some sort of injury.
- Correlation
- Correlation refers to the mutual relationship between two things. in finance, correlation is used to describe how different investments relate and respond to the same market forces. “Highly correlated” investments respond similarly to the same market forces. “Uncorrelated assets,” in contrast, respond very differently to the same market forces.
- Cost of Capital
- The cost of capital is the cost of a company’s funds (both debt and equity), or, from an investor’s point of view “the required rate of return on a portfolio company’s existing securities”.
- HNWI
- High Net Worth Individual, Typically an individual with investable finance (financial assets, excluding primary residence) in excess of US$1 million.
- Internal Rate of Return
- Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. Internal rate of return is used to evaluate the attractiveness of an investment. If the IRR of a YieldStreet offering exceeds an investor’s required rate of return, that project is desirable. If IRR falls below the required rate of return, the project should be rejected.
- Inventory
- inventory is all the tangible goods that a business intends to sell as part of its business model. A clothing store’s inventory, for example, would consist of all the clothing it has on hand available to sell.
- Inventory Financing
- inventory financing is a type of asset-backed lending that uses a company’s inventory to secure a loan. The inventory serves as collateral for the loan, meaning it can be seized and sold by the lender if the borrower fails to repay the loan.
- Investment Memorandum
- At YieldStreet Originator’s, in conjunction with our investment team, prepare an investment memorandum to provide a prospective investor with the information to determine if an offering is a good fit for their individual investment thesis.
- Irrevocable Letter of Direction
- An irrevocable letter of direction is a letter that grants the recipient specific rights with regards to the letter writer’s finances. A letter of direction might give a financial broker power of attorney over an investment account, for example, or transfer the rights of one business owner to another partner in the business. You might also write a letter of direction to your bank to instruct it to close an account on your behalf, or transfer funds between accounts.
- Lien
- A lien is the legal right of a creditor to seize property from a borrower that has failed to repay the creditor. The creditor may exercise the lien by holding the property until the loan is paid back, or selling it if the loan is not paid back.
- Liquidity
- Liquidity describes how rapidly an asset can be sold for cash. Assets such as Treasury bills or publicly traded stock that can be sold for cash within 24 hours are considered “liquid.” Assets that take awhile to sell, such as undeveloped real estate, or cannot be sold within 24 hours without significant loss of value, are considered “illiquid.”
- Loan-to-Value
- The loan-to-value (LTV) ratio is used to evaluate collateral. It is equal to the ratio between the loan amount and the diligenced value of the underlying asset. Thus, all else equal, a lower LTV is a more secure loan. For example, if a borrower is looking to renovate a building and seeks a $100k loan, the lender will perform diligence on the underlying asset (the building) and determine an LTV. If the building was appraised at a value of $200k then the resulting loan, if made, would have a 50% LTV; the loan represents only 50% of the total value of the underlying asset. To the lender LTV represents the amount of cushion between what the lender deemed the underlying asset is worth and the loan amount.
- Mass Tort
- A mass tort is a civil action involving numerous plaintiffs against one or a few corporate defendants in state or federal court. Law firms sometimes use mass media to reach possible plaintiffs.
- Non-recourse
- Non-recourse debt or a non-recourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but otherwise the lender’s recovery is limited to the collateral.
- Operating Agreement
- In a YieldStreet offering, the investors, or members, agree to operate the newly formed SPV by the bylaws described in the operating agreement. As YieldStreet Management LLC is the manager of all SPVs the operating agreement is signed by the members and the manager who is empowered via the operating agreement to run the SPV.
- Originator
- Originator’s are the individuals or firms who post offerings on YieldStreet. Originator’s perform due diligence and determine the terms of the loan with the borrower. The originator then turns to YieldStreet to fund all or part of that loan.
- Participation
- On YieldStreet, Originators will sell a participation in the loans which they provide to businesses or individuals to the crowd. Depending on the deal, the originator can sell as much as a 100% participation and as little as 5% in the loan.
- Participation Agreement
- In a YieldStreet offering, the participation agreement is signed by the originator and the manager of the SPV which has been created for each deal. The participation agreement serves as a legally binding agreement between the originator and the investors. The Manager signs this agreement as a proxy for the investors to purchase the participation in the loan.
- Payment Frequency
- On YieldStreet, Payment Frequency represents how often investors should receive principal or interest repayments.
- Plaintiff
Learn about litigation funding and more on YieldStreet University
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- Post-settlement funding
- Many settlements are structured over a long period of time. Once a settlement has been agreed upon, many plaintiffs find themselves in need of money from their settlement however given the structure they are unable to access the money which they are entitled to. Post-settlement funding provides former plaintiffs with cash up front in exchange for payments at a later date.
- Seniority
- Seniority is the order in which a company is required to pay its debts. Senior debt is repaid before junior debt. Holders of senior debt get the privilege of being paid back first.
- Settlement
- A settlement is a resolution between disputing parties about a legal case, reached either before or after court action begins.
- SPV
A Special Purpose Vehicle “SPV” is a newly formed company, with the sole purpose of keeping your investment secure, regardless of the originator or YieldStreet credit risk.
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- Subscription Agreement
- In a YieldStreet offering, the subscription agreement is signed by all investors. The Subscription Agreement represents an agreement to purchase a portion of the SPV which has been created for an offering. Each investor owns a pro-rata portion of the SPV.
- UCC-1 / Perfected Interest
- A UCC-1 financing statement is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor. This form is filed in order to “perfect” a creditor’s security interest by giving public notice that there is a right to take possession of and sell certain assets for repayment of a specific debt with a certain priority.
Investors
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.
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]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
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 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 Dec 22th, 2021, 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 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.
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.
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Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
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Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
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