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Regulation D

May 6, 2022 • 2 min read

If a company offers or sells any type of securities, it must comply with the regulations stipulated in the Securities Act of 1933 also known as the Securities Act.

The Securities Act ensures that the seller or company registers those securities under the act, or qualifies for an exemption under the registration requirements.

Regulation D, which is sometimes known as Rule 506 has two distinct exemptions.

Companies can rely on Rule 506 to raise an unlimited amount of money.
Regulation D has three additional safe harbors under Section 4(a)(2) with exemption registration requirements.

Rule 504, Rule 506(b), and Rule 506(c) allow companies to offer and sell certain securities without prior registration with the Securities and Exchange Commission (SEC) under the Securities Act.

To comply with the safe harbor requirements of Rule 506 (b) under Section 4(a)(2) some exemptions may be satisfied under the following circumstances:

Securities on sale or offer are not allowed to be advertised or solicited.
These securities can be sold to an unlimited number of accredited investors.
If securities are sold to non-accredited investors, they must be accompanied by a purchaser representative or have a sophisticated amount of knowledge of financial matters.
Companies can decide on the information they want to provide accredited investors as long as it complies with anti-fraud regulations of the securities laws.
Non-accredited investors should receive information and disclosure documents on the securities on offer.
Companies must be open to discussing transactions of sales and offers with prospective purchasers.

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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 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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