Art Equity Fund I

Annualized return3

Term

60 months

Per the amended marketing rules adopted by the SEC, some investment details can only be shown to certain logged-in members.

Status

Closed

Recently funded

Accepting $10,000 - $1,000,000 investments

Have an account? Log in

Accepting $10,000 - $1,000,000 investments

Overview

Highlights

Art market dynamics

Artist track record

Availability of works

Diversified offering

Insurance and possession

Third party assessments

Accessibility

Experience the art

Presently, at more than one and a half years since the onset of a global pandemic, the art market has begun to make a strong recovery. The recent Frieze week sales in London, which are anchored around the acclaimed Frieze Art Fair, signaled a return to pre-Covid bidding energy within live salerooms. Christie’s and Sotheby’s, the two biggest global auction houses, had combined contemporary art evening sales during this week that generated $202M including buyer’s premium and overhead premium, 30% above their combined pre-sale estimates, and 20% above their combined sales in October 2019, the last ‘Frieze Week’ sales prior to the global shutdown.
Post-War and Contemporary Art was identified as the largest sector of the fine art auction market in 2020 by the Art Basel & UBS 2021 Art Market Report, with a share of 55% (up 2% in share year-on-year). According to Athena’s proprietary database, Haring, Condo and Scharf have experienced respective average compound annual growth rates of 14.3%, 36.1%, and 29.4% since 2015.
Eight out of the nine works in the initial pool have never been previously sold at auction and are thus largely unknown to the market. The Haring was sold at auction in 2004, but has not since been offered publicly for sale. The exclusivity of the works included in the portfolio is expected to make them highly demanded by astute art investors when offered at exit.
The Fund offers exposure to a pool of blue-chip, mid-career and emerging artists. Increased diversity should reduce concentration risk for investors relative to investing in a single artwork. \ \ Art prices are believed to have low correlation with the S&P 500 (between 0.0 and 0.2). This perceived low correlation suggests that the movement in the price of art is independent from the movements of the S&P 500.
At all times, the artworks will be insured by a wall-to-wall fine art insurance policy providing coverage up to the fair market value for the total collateral pool. The insurance policy names the Fund as the Insured and Loss Payee. The Fund will also have a master insurance policy which will be in-line with market fine art policies and will consist of coverage against damage, terrorism, etc. \ \ Yieldstreet and Athena will maintain possession and control of all artworks at all times.
Prior to purchasing the works, two highly reputable, USPAP-certified third-party appraisers were engaged to provide fair market value appraisals of the works. Additionally a conservator was engaged to evaluate the condition of all works before they were purchased.
Investing in physical artworks has been a prominent wealth-creation strategy for ultra-high net worth investors for decades as they search for potentially higher returns outside of the stock market, and for the exclusivity of owning a one-of-a-kind, original creation. While most don't have the financial means or connections to own an original Warhol, Basquiat or Lichtenstein artwork outright, Yieldstreet now makes access to these artworks possible with as little as $10K.
Not only is Yieldstreet providing a way to invest in fine art, but we also plan to offer unique and exciting ways for investors to experience the art, including private curated showings made exclusively available to them.

Essentials

Please refer to the Private Placement Memorandum in the Docs section for more details about this offering.

Capital structure

Where does Yieldstreet lie in terms of priority?

Cash flow

How do I get paid?

Assets

What is the asset underlying the transaction?

Slide 1 of 2

Returns & Management fees

Ann'l management fee

Target ann'l net return

15-18%

Investor share of excess profits

85%

Incentive fee

15%

Schedule

Payment schedule

Event based

Prefunded

Yes

Target term

5 years

Target liquidity event

Year 3

Extension options

Two, 1-year

Structure

Tax document

K-1

Offering structure

SPV

Expenses

Ann'l flat expense

0.25%

Docs

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.

Content

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS AEF I LLC ("Fund"). The Offering is made only by means of the Private Placement Memorandum dated November 12, 2021 relating to the Offering (the "PPM"). 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 PPM, or as incorporated in the PPM 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 PPM or in any marketing or sales literature issued by the Fund or Yieldstreet Management, LLC, as adviser thereto, and referred to in the PPM, and, if given or made, such information or representations must not be relied upon. All investors must read the PPM in its entirety prior to investing in the securities.

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," "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 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.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

[email protected]

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is 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, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

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 therefore.

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 are 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.

Banking services are provided by Evolve Bank & Trust, Member FDIC.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure

Privacy PolicyData Security

Website Data Collection Preferences

AccessibilityTerms of UseForm ADV Disclosure BrochureForm CRS