by Christopher Nutt | Director of Portfolio Management & Restructuring
Update: For the most recent portfolio snapshot, please see Yieldstreet Portfolio Snapshot: April 2021
We founded Yieldstreet on the premise that access to, and distribution of alternative investments is fundamentally broken, and we wanted to help solve that problem. We believe in education and transparency because they are the key to knowledge-based investing. Because of our investor-first mentality, we’re providing our investors with insights into our portfolio since inception. The below snapshot provides our investors with additional data about Yieldstreet and its history because, even though the opportunities and risks that accompany each investment are as diverse as the opportunities themselves, part of making empowered and informed decisions about an individual offering is knowing about us and how we have grown with our investor community.
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Since our founding, we are proud of the value that we have created for our investor community and the journey they have taken with us. As of March 31, 2020, Yieldstreet has had over 109 offerings (63%) mature and has fully repaid investors. This has generated close to $100M of interest that has helped thousands of investors generate passive income to fuel some of their life’s ambitions, such as putting their kids through college, buying the family home, or even a well-deserved vacation. We have enjoyed building a tight-knit investor community.
Please note, as of the end of Q1 2020, of the 14.7% in default by dollars invested, 7.5% (approximately 52% of the dollar amount in default) relates to a fraud undertaken by an affiliated set of borrowers in the Marine sector. The remaining 7.2% of dollars invested in default are unrelated to this.
No lending institution or asset manager is immune to defaults. Yieldstreet works with external originating partners during the underwriting and due diligence process and relies on their expertise in managing investments. While investments are targeted to perform in-line with expectations, expectations are not guarantees, and not all investments will perform as anticipated. Late or missed payments, temporary moratoriums, or forbearances are common in these types of alternative investments. However, it is important to note that default does not necessarily mean total principal loss. When defaults do occur, Yieldstreet remains committed to acting in the best interest of our investors and works diligently to support originating partners and other appointed third-parties in their efforts in pursuit of collateral recovery.
Note that all the data presented in this communication is dated as of March 31, 2020. If you have additional questions, please contact us at [email protected].
1Default refers to investment offerings where a formal event of default on the underlying loan has been declared.
2Partial Default refers to investments offering where a formal event of default on the underlying loan has been declared but either (i) at least one loan in a portfolio of multiple loans has been paid off in full or (ii) over 50% of the initial principal investment has been repaid.
This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor 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. Any link to a third-party website (or article contained therein) is not an endorsement, authorization or representation of our affiliation with that third party (or article). We do not exercise control over third-party websites, and we are not responsible or liable for the accuracy, legality, appropriateness, or any other aspect of such website (or article contained therein).
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