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How Legal Finance works

August 17, 2016 • 2 min read

Law firms sometimes rely on financing to balance uneven cash flows that result from the event-based nature of case litigation, including attorneys and law firms that work on a contingency fee basis, meaning they are not paid until a case is won or settled.

As such, Legal Finance allows law firms to cover expenses while operating and growing their business with the expectation that, when the law firm wins a case or achieves a settlement for its client, the financing will be repaid. Below is a graphic that reviews the details of the process.

For additional questions regarding Yieldstreet or our Legal Finance offerings, please email us at [email protected].

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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]

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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.

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