Overview
Yieldstreet is pleased to offer a short-term liquidity product earning investors annualized target interest payments of 3% over its 90-day term. Yieldstreet offers a potential mutual advantage to both originators and investors by fully prefunding upcoming offerings that will launch on the Yieldstreet platform. From the originator’s perspective, prefunding helps to eliminate execution risk for the transaction as 100% of funds are available at the time of closing. For investors, prefunding an investment offering means that any participating investors can begin to earn interest as soon as their allocation goes active, regardless of whether the rest of the investment has been fully allocated. Yieldstreet will also invest in this Short Term Note offering alongside its investors and take a first loss position, ultimately demonstrating its alignment of interests with investors.
Since January 2018, Yieldstreet has been prefunding offerings via a warehouse financing facility before they launch on the platform, and over $1.4B has been financed to date through this prefunding program. This note functions in the same way as the warehouse financing facility, as it allows Yieldstreet to access additional capital to prefund more offerings. The Short Term Notes Series is an established workflow, and Yieldstreet has provided its investor community the opportunity to earn yield through Short Term Note offerings launched at a cadence since May 2019.
Yieldstreet investors are scheduled to receive interest payments on a monthly basis at a target annualized target interest rate of 3% over the course of the 3 month term.
Important notes
• The notes issuer is required to pay interest to participating investors regardless of cash utilization. Yieldstreet bears the risk and management of utilization. Investors can consider their note fully drawn until repaid.
Returns & Fees
Management fee
0.0%
Target net yield
3%
Schedule
Payment schedule
Monthly interest
Interest type
30/360
Prefunded
No
Term
Date
Target term
Oct 5, 2021
Structure
Tax document
1099-INT
Offering structure
Short Term Note
Expenses
First year expense
$0
Annual flat expense
$0
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Essentials
Please refer to the Private Placement Memorandum and the Series Note Supplement for more details about this offering.
Please refer to the Private Placement Memorandum and the Series Note Supplement for more details about this offering.
Capital structure
Capital structure
Where does an investor lie in terms of priority?
The notes are indirectly secured by investments in underlying offerings, which may include loans, leases, real estate interests, receivables, or participation interests in the aforementioned. In certain cases, Yieldstreet may utilize senior leverage facilities when funding an offering. In these cases, the notes would have a subordinated interest in the underlying collateral.
Cash flow
Cash flow
How do I get paid?
The notes have a 3 month term. Yieldstreet investors can expect to receive monthly interest payments at a fixed annual target interest rate of 3% on their full investment amount.
Upon maturity, the remaining principal is expected to be paid back. Investors might be offered the opportunity to resubscribe into a new Short Term Note series or to use their returned capital to invest in other offerings on the Yieldstreet platform.
Assets
Assets
What is the collateral underlying the transaction?
The assets of the note issuer primarily consists of: (i) loans made to entities managed by Yieldstreet to fund or refinance investments; and (ii) funds held by the note issuer).
Yieldstreet will primarily utilize the proceeds of the notes at its discretion to fund upcoming offerings in any industry. Investors will be able to track their investment progress and interest payments in their portfolio, but specific information regarding the offerings prefunded using note proceeds will not be shared.
Highlights
No fees
Liquidity
Established prefunding workflow
Yieldstreet track record
Yieldstreet first-loss position
Scheduled interest
Resources
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS ST NOTES LLC ("Issuer"). The Offering is made only by means of the Private Placement Memorandum dated November 2, 2022 and the Series Note Supplement relating to the Offering (collectively, the "Offering Documents"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Documents, or as incorporated in the Offering Documents by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Documents or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Documents, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Documents in their entirety prior to investing in the securities.
Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.
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]