by Yieldstreet | Staff
Since the Jumpstart Our Business Startups (JOBS) Act made it possible for businesses to raise capital through crowdsourcing in 2016, it’s been the Yieldstreet mission to make Yieldstreet’s alternative investments accessible to a broader audience. Our dedicated team is beyond thrilled to finally be able to offer all investors an investment product that assists them in creating a fixed-income portfolio, one that provides you with exposure to numerous alternative asset classes.
If you’re familiar with Yieldstreet and our traditional single-asset class offerings, or even if you’re not, you might have questions around how the logistics of this investment differ from the other investment offerings we have on our platform. Below we explore the answers to questions around who can invest in what offerings on the Yieldstreet platform.
That’s a great question. The answer isn’t because we don’t want to offer these investment opportunities to everyone. Instead, it’s because Yieldstreet’s individual offerings are sold to investors under Rule 506(c) of Regulation D of the Securities Act of 1933, which permits issuers to broadly solicit and generally advertise an offering that is exempt from registration with the U.S. Securities and Exchange Commission. This rule requires us to verify that all the investors participating in one of our individual offerings are, in fact, accredited.
As you may know, an accredited investor is an individual investor who generally meets the following SEC requirements:
In order to verify their accreditation with Yieldstreet, accredited investors must provide us with the necessary information during our internal accreditation verification process. To do so, they must upload their two most recent W2s, K1s, or 1099 forms as well as submit their tax returns on the platform. If applicable, they may also submit a verification request through the Yieldstreet system to a third party such as a CPA, lawyer, registered broker-dealer, or investment advisor who can validate their status.
Another good question. As we mentioned above, since Yieldstreet started, the core audience for our investment offerings have been accredited investors. And initially, for the Yieldstreet Prism Fund, we began with this same audience. However, as the Fund has progressed so has its audience rollout. Since the Fund’s second investment window in May of 2020, the Fund has been available to self-verified accredited investors. We are now excited to offer the Fund to all investors, regardless of accreditation status.
That is correct. Just like with Yieldstreet’s traditional single-asset class offerings, you are able to invest in the Fund with a Yieldstreet IRA. Here is where you can find more information on opening a Yieldstreet IRA.
While we’re on the topic, you should also know that investors, just like with traditional offerings on our platform, are able to invest in the Fund as either an individual or an entity.
At the moment, we do not have a specific timeline that we can provide. However, we’d like to emphasize that many of the investments that comprise the Yieldstreet Prism Fund are the same types of investments that are offered as single asset-class investments on our platform.
If you still have additional questions regarding the Fund, please reference the below resources. You can also reach out to our Investment Relations team [email protected].
For additional information on the Fund, please refer to the prospectus.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.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.
The securities described in the prospectus are not offered for sale in the states of Nebraska or North Dakota or to person resident or located in such states. No subscription for the sale of Fund shares will be accepted from any person resident or located in Nebraska or North Dakota.
1For the avoidance of doubt, the Fund’s shares are being publicly offered pursuant to the Securities Act of 1933, and are not privately offered pursuant to Rule 506(c) of Regulation D thereunder.
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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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 a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments 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 Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.
8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.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.
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. 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 therefor.
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.
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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 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.
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Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
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