Yieldstreet is an alternative investment platform that provides individual investors with access to a wide range of alternative assets that are typically reserved for institutional and high-net-worth investors. Founded by Milind Mehere in 2015, Yieldstreet aims to democratize the investment landscape by offering unique investment opportunities in asset-backed investments, litigation finance, marine finance, real estate, and more.
In this article, we will discuss the features and offerings of Yieldstreet, shedding light on its various investment options, fees, and key aspects that set it apart from traditional investment platforms.
Yieldstreet: A Platform for Alternative Investments
Yieldstreet offers both accredited and non-accredited investors access to a wide array of alternative investment options, allowing them to diversify their portfolios beyond the traditional stock market. The platform specializes in debt investments, structured notes, direct investments, equity investments, and illiquid investments, presenting investors with the opportunity to potentially enhance their returns while reducing risk through diversified portfolios.
Alternative Investment Offerings
The alternative asset classes available on Yieldstreet include legal finance, real estate investment, marine finance, crypto, art, supply chain financing, and more. Investors can either choose individual deals in these sectors or opt for the Yieldstreet Prism Fund, a diversified fund that combines several alternative investment strategies.
- Legal Finance: Yieldstreet offers investment opportunities in legal settlement financing, allowing investors to potentially earn returns from legal cases that result in financial settlements or judgments. This asset class provides access to a niche market that can be uncorrelated with the broader stock market, providing added diversification to investors’ portfolios.
- Real Estate Investment: Yieldstreet’s real estate investment options include both equity and debt investments in commercial and residential properties. Investors can access real estate investment trusts (REITs), as well as individual real estate projects, providing a range of opportunities for real estate investors.
- Marine Finance: Yieldstreet provides investment opportunities in marine finance, which includes financing for shipping vessels, cargo, and other marine-related assets. This unique asset class allows investors to access a market with high barriers to entry and potential returns uncorrelated with traditional investments.
- Crypto: Yieldstreet also offers exposure to the growing cryptocurrency market, providing investors with opportunities to participate in this rapidly evolving digital asset class. By investing in crypto-related assets, investors can gain access to a sector that has demonstrated significant growth potential and diversification benefits.
- Art: In addition, Yieldstreet presents investment opportunities in the art sector, allowing investors to benefit from the value appreciation of fine art pieces. By investing in this asset class, investors can tap into a historically resilient market that often demonstrates low correlation with traditional investments, further diversifying their portfolios.
Fees and Expenses
Yieldstreet charges annual management fees for its investment offerings, typically ranging from 1% to 2% of the invested capital. In addition, some investments may have additional fees, such as origination fees or servicing fees. It’s essential for investors to review the fee structure for each investment opportunity to understand the potential impact on their returns.
Non-Accredited Investors and the Yieldstreet Prism Fund
Non-accredited investors, who do not meet the strict financial criteria set forth by the SEC, can now benefit from the Yieldstreet Prism Fund’s diverse specialty finance holdings. With a minimum investment of just $5,000, the Fund opens the door to a broader audience, allowing individual investors to reap the benefits of alternative assets, such as Art, Commercial, Consumer, Legal, Real Estate, Corporates, and more.
The Yieldstreet Prism Fund aims to generate an 8% distribution rate, providing investors with an attractive income stream. As of December 31, 2022, the Fund has $114.2 million in assets under management, demonstrating its growing popularity among investors looking for diversification and income generation.
By investing in the Yieldstreet Prism Fund, non-accredited investors can now access a professionally managed, multi-credit income portfolio that has been traditionally off-limits. Moreover, the Fund offers the simplicity of 1099 tax reporting, further enhancing its appeal to a wider range of investors. This innovative fund solution democratizes the alternative investments space, fostering financial inclusion and empowering more individuals to participate in the private market.
Customer Service and Support
Yieldstreet’s customer service team is available to assist investors with their inquiries and concerns, providing support via phone and email. The platform also offers educational resources, such as articles and webinars, to help investors better understand the alternative investment landscape.
Yieldstreet’s Value Proposition
Yieldstreet stands out in the alternative investment space for its commitment to democratizing access to unique investment opportunities that were once the exclusive domain of institutional and high-net-worth investors.
Diversification Benefits: One of the most significant advantages of investing in alternative assets through Yieldstreet is the ability to diversify your investment portfolio. By offering access to asset classes such as legal finance, marine finance, and art, Yieldstreet allows investors to spread their risk across various sectors, reducing the potential impact of market volatility on their overall investment performance.
- Unique Investment Opportunities: Yieldstreet’s platform provides access to niche markets and specialized investment opportunities that are not typically available through traditional investment platforms. By offering investments in sectors like litigation finance and marine finance, Yieldstreet enables investors to tap into markets that can generate potentially attractive returns while being uncorrelated with the broader stock market.
- Professional Management: Yieldstreet’s team consists of experienced professionals with backgrounds in finance, law, and technology. Their expertise in sourcing, underwriting, and managing alternative investments provides investors with the assurance that their capital is being handled by skilled professionals who understand the nuances of the alternative investment landscape.
- Transparent Fee Structure: Yieldstreet is committed to maintaining a transparent fee structure, ensuring that investors are aware of the costs associated with each investment opportunity. By being upfront about management fees and other expenses, Yieldstreet allows investors to make informed decisions and understand the potential impact of fees on their returns.
- Educational Resources: Yieldstreet offers a wealth of educational resources to help investors better understand the alternative investment landscape. Through articles, webinars, and other materials, Yieldstreet equips investors with the knowledge and tools necessary to make informed decisions and navigate the complexities of alternative investing.
- Focus on Asset-Backed Investments: Yieldstreet specializes in asset-backed investments, which can provide a measure of security for investors. By investing in opportunities backed by tangible assets, such as real estate or shipping vessels, investors can potentially benefit from the value appreciation of these assets while mitigating some of the risks associated with more speculative investments.
What is Yieldstreet – Final Thoughts
Yieldstreet is an alternative investment platform that offers a range of investment options in niche markets typically inaccessible to individual investors. With its focus on asset-backed investments and unique asset classes like legal finance and marine finance, Yieldstreet provides investors with the opportunity to diversify their portfolios beyond traditional stocks and bonds.
For those looking to explore alternative investments, Yieldstreet may be a suitable option. However, it’s crucial for investors to understand the risks associated with these investments, as they may be less liquid and more complex than traditional investment options. Always conduct thorough research and consider your financial goals and risk tolerance before investing in any platform.
Overall, Yieldstreet’s commitment to democratizing access to alternative investments, providing educational resources, and offering diversified portfolios makes it an attractive option for investors interested in exploring alternative asset classes. Whether you are an accredited or non-accredited investor, Yieldstreet may provide unique investment opportunities to help you achieve your financial goals.
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