YieldStreet

YieldStreet is an online investment platform that offers a diverse range of alternative investment opportunities across various asset classes, such as real estate, art, private credit, supply chain finance, legal finance, and more. Founded in 2015, YieldStreet aims to provide retail investors with access to previously inaccessible alternative investments, typically reserved for institutional and ultra-wealthy investors.

The platform securitizes these alternative assets, allowing investors to purchase shares or participate in investment vehicles that provide exposure to different asset types. YieldStreet's investment offerings span equity investments, debt financing products, commercial loans, art funds, private real estate deals, short-term notes, and structured notes.

YieldStreet's investment team follows a rigorous vetting process, rejecting over 88% of the opportunities presented to ensure quality investments. The company prioritizes asset-backed opportunities that offer a balance between attractive yields and lower volatility compared to traditional stock market investments. Target returns for individual offerings range from 7% to 15%, with some short-term notes targeting yields of 3% to 4%.

To cater to different investor preferences, YieldStreet offers two primary investment types: single asset-focused offerings and diversified funds. Single asset offerings allow investors to participate in specific investment opportunities, such as a commercial real estate project or an art fund. Diversified funds, like the YieldStreet Prism Fund (previously known as the Alternative Income Fund), provide exposure to a portfolio of multiple alternative asset classes within a single investment.

YieldStreet charges annual management fees ranging from 1% to 4%, depending on the investment, along with potential flat annual fees for expenses related to the legal structure of the offering. The company's net annualized return since inception stands at an impressive 9.8% as of July 2022.

Key customers and partnerships

YieldStreet partners with various origination entities and asset managers to source and vet investment opportunities across different asset classes. The platform collaborates with real estate management firms, art dealers, private credit originators, and other specialized partners to curate its alternative investment offerings.

One notable partnership is with Harbor Group International, a private real estate management firm, to launch a real estate fund in early 2021, allowing investors to participate in the potential upside of the real estate sector's recovery.

Additionally, YieldStreet has partnered with IRA custodian Equity Trust, enabling investors to add alternative investments to their self-directed IRAs for potential higher returns and diversification benefits. Over 85% of YieldStreet's alternative investment products are eligible for inclusion in these self-directed IRAs.

While YieldStreet primarily caters to accredited investors due to regulatory requirements, the platform has made strides to expand access to non-accredited investors as well. The YieldStreet Prism Fund (Alternative Income Fund) is open to all investors, regardless of accreditation status, providing exposure to a diversified portfolio of alternative asset classes with a minimum investment of USD 5,000.