What to expect during the lifetime of an investment

April 4, 20184 min read
Share on facebookShare on TwitterShare on Linkedin
person writing - yieldstreet investment

You just put money to work in one of our investment offerings. What happens next? Over the lifetime of an investment, you may see money flowing back into your account not only in different dollar amounts but also in varying time intervals. In this article, we’ll explain why this occurs.

Earning Interest

Once your investment is marked active in your portfolio, it begins earning interest. Accrued interest is interest that an investment is earning, but has not paid out yet. Depending on the type of offering, you could be paid your accrued interest monthly, quarterly, on an event-based basis, or upfront.

Fund Expenses

Depending on the offering structure, a flat annual fund expense will be paid from interest that you’ve earned. Once this expense is satisfied, future interest distributions are made directly to your account. Read more about fund expenses orwatch our video that describes the process.

Interest Payments

Some of our offerings have predefined payment schedules that pay interest monthly or quarterly. Although your investment is earning interest daily, that interest is distributed to you during defined intervals. It is important to note that the timing of payments each month may vary by as many as 30 days. This lag is attributed to processing time (funds must flow from the Borrower to the Originator, to Yieldstreet, then processed to investors), and each underlying Loan’s payment grace period as outlined in the underlying loan documents. As an example, please review this infographic on receiving payments for real estate offerings.

Some offerings have event-based payment schedules. Event-based payments are most commonly associated with legal investments offered on the Yieldstreet platform. “Event-based” means that investors receive payments following an “event” — i.e. when individual cases within a portfolio settle (this is also called a “settlement event”). Those payment dates and amounts cannot be pre-determined because the timing of when cases will settle in court is unknown. 

When investing in a portfolio of multiple cases, an investor can expect to receive several different payments throughout the targeted length of the investment, depending on the rate of settlement activity. Sometimes several settlements may occur in the same month and trigger multiple payments, other times there may be longer periods where no settlements occur and therefore no payment distributions are made. Similar to Real Estate payments, event-based payments take time to be received and processed, it can take roughly 11-17 business days in processing. This infographic outlines how cash flows from the litigation funding company to Yieldstreet investors, for additional details.


Further, some investments, most commonly short-term Marine investments, may make a single upfront interest payment for the duration of the loan. It’s important to read the details of each individual investment to understand the expected payment schedule. Typically, this type of upfront interest investment with a 6-month duration has a maturity date that is 180 days (6 months) from the funding date. The funding date is when Yieldstreet funds the investment. Investors will receive interest from the date their investment became active to the date of maturity, which may be less than the full 6-month target duration stated.

Principal Payments

Depending on the investment structure, you may also receive principal payments during the lifetime of an investment. In a litigation portfolio, for example, this can occur after a settlement event when proceeds are distributed to investors. It is important to note that interest accrues on the entire outstanding principal balance of the portfolio of advances or cases. The breakout of principal vs. interest paid will depend on how much interest has accrued on the overall portfolio at the time a case (or cases) settle. This infographic outlines the repayment of interest and principal. 


In a real estate offering that consists of a portfolio of multiple loans, the individual loans often have varying maturity dates. For example, if there are two distinct loans in the portfolio, Loan A may be set to mature in 10 months and Loan B may be set to mature in 12 months. So, investors should expect to receive a portion of their principal back after 10 months and the remaining outstanding principal after 12 months. It is also important to note that there is a chance that the borrower could pay back in full, or a portion of the loan, sooner or later than its expected maturity. This is the nature of bridge loans. The maturity dates of all loans included in a portfolio are always outlined in detail in the offering’s Investment Memorandum. The Investment Memorandum is available to download on the offering page, and is also accessible in your portfolio for any active investments.

Offerings at Yieldstreet can have predefined interest payment schedules or payments with varying intervals. Similarly, principal may be returned throughout the term of the investment, with the remaining principal balance continuing to accrue interest until maturity. It’s important to understand the payment structure of each individual offering. These details can be found in the Investment Memorandum or Series Note Supplement which is posted to each investment’s offering page

For more information check out Yieldstreet Resources.

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).

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

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.

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 Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetalternativeincomefund.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.

9 Statistics as of the most recent month end.

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


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.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Synapse Financial Technologies, Inc. and its affiliates (collectively, “Synapse”) as well as certain third-party financial services partners. Synapse is not a bank and is not affiliated with Yieldstreet. Bank accounts are established by Evolve Bank & Trust. Brokerage accounts and cash management programs are provided through Synapse Brokerage LLC (“Synapse Brokerage”), an SEC-registered broker-dealer and member of FINRA and SIPC. Additional information about Synapse Brokerage can be found on FINRA’s BrokerCheck. By participating in a Synapse cash management program, you acknowledge receipt of and accept Synapse’s Terms of Service, Privacy Policy, and the applicable disclosures and agreements available in Synapse’s Disclosure Library.

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