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Private Equity Fund

May 3, 2022 • 2 min read

A private equity fund is a manageable investment scheme controlled by an investment broker or a limited liability partnership. These investment schemes house a collection of equities and debt securities that have a majority period of between five and ten years at the minimum.

A private equity fund does not allow novice investors the opportunity to trade on the public market, nor are any of the equities in the investment scheme traded in public companies.

Rather, investment firms will control these funds by pooling together capital from seasoned and institutional investors to purchase shares and equities in listed companies.

A private equity fund is generally a safer option for first-time investors and allows them to invest in private companies without having to incur risks associated with the stock market.

Why invest in a private equity fund?

For starters, a private equity fund is a safer option for those investors who are not as knowledgeable on stocks or the stock market.

The private equity fund is managed by an investment firm, and they control the funds that are placed into the equity fund.

Then there’s the fact that with a private equity fund, the investors can decide on the type of investment structure or strategy they would like to use the fund for. In some cases, investors tend to use the equity fund as a way to raise capital for a specific goal i.e. to pay for a big purchase or to use the funds as a retirement package.

These funds also mature at different periods, with the minimum being five years. Some fund managers suggest that investors opt for a longer period, anywhere between 10 and 25 years. This not only helps the fund mature better but allows for increased capital gains.

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² Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[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.

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⁹ Statistics as of the most recent month end.

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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.

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