Yieldstreet

YieldStreet was founded by Milind Mehere and Michael Weisz.{{cite web |last1=Baer |first1=Drake |title=On Tuesday we're talking with YieldStreet CEO Milind Mehere about how to find product-market fit fast, the essentials of startup leadership, and how fintechs can navigate the downturn |url=https://www.businessinsider.com/sign-up-starting-up-interview-with-yieldstreet-ceo-milind-mehere-2020-6 |website=Business Insider |date=June 19, 2020}}{{cite web |last1=Baer |first1=Drake |title=Yieldstreet founder Milind Mehere |url=https://www.businessinsider.com/starting-up-with-drake-baer-with-yieldstreet-founder-milind-mehere-2020-6 |website=Insider Inc. |date=June 23, 2020}} Mehere was previously a co-founder of Yodle and Weisz had held leadership positions with Soli Capital and American Medical Concierge across the specialty finance spectrum.{{cite web |title=Michael Weisz Founder & President YieldStreet |url=https://greenwicheconomicforum.com/michael-weisz/ |archive-url=https://web.archive.org/web/20220521145733/https://greenwicheconomicforum.com/michael-weisz/ |url-status=usurped |archive-date=May 21, 2022 |website=Greenwich Economic Forum |date=March 18, 2020}}

YieldStreet acquired Athena Art Finance from The Carlyle Group for $170 million in April 2019.{{cite web |last1=Dafoe |first1=Taylor |last2=Schneider |first2=Tim |title=Athena Art Finance Was Founded With $280 Million in Funding. It Was Just Sold for Only $170 Million |url=https://news.artnet.com/market/athena-art-finance-yiledstreet-1513456 |website=Artnet |date=April 10, 2019}} YieldStreet then acquired WealthFlex to integrate a self-directed IRA functionality for their investors later in 2019.

The YieldStreet Alternative Income Fund (formerly known as the YieldStreet Prism Fund{{Cite web |date=October 9, 2024 |title=Yieldstreet Alternative Income Fund |url=https://yieldstreetalternativeincomefund.com/ |website=Yieldstreet Alternative Income Fund - Official Website}}) was introduced in March 2020 as a multi-asset closed-end fund with quarterly distributions,{{cite web |last1=Fuscaldo |first1=Donna |title=BlackRock Makes Alternative Investment Push With YieldStreet Partnership |url=https://www.forbes.com/sites/donnafuscaldo/2020/02/18/blackrock-makes-alternative-investment-push-with-yieldstreet-partnership/ |website=Forbes |date=February 18, 2020}} that contains a blended portfolio of asset classes and cash, allowing investors to access multiple alternative asset classes with a single investment. YieldStreet's individual offerings are typically only available to accredited investors, but the YieldStreet Alternative Income Fund does not involve any income or net worth minimums.{{cite web |last1=Fitzgerald |first1=Maggie |title=Alternative investments platform Yieldstreet raises $100 million amid pandemic growth |url=https://www.cnbc.com/2021/06/02/alternative-investments-platform-yieldstreet-raises-100-million-amid-pandemic-growth.html |website=CNBC |date=June 2, 2021}}

In November 2021, YieldStreet launched the Art Equity Platform, which holds a portfolio of artwork from after World War II, as well as contemporary and modern contemporary art. People are able to invest in the art and earn returns of 15 to 17 percent.{{cite web|last=Frank|first=Robert|title=Yieldstreet launches fund for smaller investors to bet on art|website=CNBC|date=2021-11-12|url=https://www.cnbc.com/2021/11/12/yieldstreet-launches-fund-for-smaller-investors-to-bet-on-art-.html|access-date=2021-12-02}}

In April 2022, YieldStreet announced that it would allow its users to invest in startups, and that the first companies included were Flutterwave and Fetch Rewards. The arrangement is made in partnership with Greycroft.{{cite web|url=https://www.crowdfundinsider.com/2022/04/189695-yieldstreet-adds-startup-investments-in-greycroft-partnership//|title=Yieldstreet Adds Startup Investments in Greycroft Partnership|website=Crowdfund Insider|date=April 12, 2022|first=Tony|last=Zerucha|access-date=April 15, 2022}}

In August 2022, YieldStreet announced the closing of a $400 million credit facility from Monroe Capital, which is dedicated to pursuing new and compelling investment opportunities that further widen the scope and number of available offerings on YieldStreet's platform.{{cite journal|date=9 August 2022|url=https://www.abfjournal.com/dailynews/yieldstreet-closes-400mm-credit-facility-from-monroe-capital/|title=Yieldstreet Closes $400MM Credit Facility From Monroe Capital|journal=ABF Journal|access-date=9 August 2022}}

In November 2023, YieldStreet has announced the acquisition of Cadre, an online real-estate-focused investment platform aimed at institutional and high net worth investors.{{cite web |title=Yieldstreet To Acquire Online Investment Platform Cadre, Ushering in a New Era of Private Market Alternatives Investing |url=https://www.yieldstreet.com/blog/article/yieldstreet-to-acquire-online-investment-platform-cadre/ |access-date=30 November 2023}}

According to YieldStreet's own statistics as of 3/31/2025, 74.8% of their investment offerings have matured, with $4.98 billion total invested and $3.84 billion in investor returns with a net annualized return (IRR) of 7.4%. According to the footnote #6 on the YieldStreet platform, this is an average net realized IRR with respect to matured investments and therefore does not include active or defaulted investments in the calculation.[https://www.yieldstreet.com/statistics/]

In addition to the 74.8% matured offerings, 18.4% are active, 4.3% have a modified outlook (i.e. not performing according to initial expectations),{{Cite web |title=Yieldstreet investor communication policy |url=https://www.yieldstreet.com/resources/article/yieldstreet-investor-communication-policy-2022/ |access-date=2025-01-05 |website=www.yieldstreet.com |language=en-us}} and 2.7% have defaulted. Below is a breakdown by asset class:

In 2023, YieldStreet crossed $2 billion in principal and interest returned to their investors since inception.{{cite journal|date=9 February 2023|url=https://www.yieldstreet.com/statistics/|title=Yieldstreet, By The Numbers

|journal=Yieldstreet|access-date=9 Feb 2023}}

In August 2020, the Wall Street Journal reported that "YieldStreet disclosed that 14.7% of the money investors plowed into the firm involved loans that wound up in default as of March."

As of January 2025, Yieldstreet has a Trustpilot rating of 1.8 out of 5 stars with reviewers citing issues such as underperforming investments, lack of transparency, poor customer service and deceptive marketing tactics.{{Cite web |date=2025-01-07 |title=Yieldstreet is rated "Poor" with 1.8 / 5 on Trustpilot |url=https://www.trustpilot.com/review/yieldstreet.com |access-date=2025-02-03 |website=Trustpilot |language=en-US}}

Adam Neumann, the founder of WeWork, is the sponsor of two YieldStreet investment offerings via his real estate startup Flow, Stacks on Main in East Nashville and 2010 West End Avenue in Downtown Nashville, both residential apartment buildings. As of 1/12/2024, both properties were facing a cash flow deficit and had to raise new capital in the form of member loans to bridge the gap.{{Cite web |last=Cavanaugh |first=Isabella Farr and Suzannah |date=2024-01-12 |title=Adam Neumann’s Flow faces cash crunch at Nashville properties |url=https://therealdeal.com/national/nashville/2024/01/12/adam-neumann-faces-shortfalls-on-flow-property-in-nashville/ |access-date=2025-01-02 |website=The Real Deal |language=en}}

In an update to investors as of 8/20/2024 regarding the equity investment in 2010 West End Avenue, YieldStreet announced "The property needs further capital contributions to continue operations. However, YieldStreet and the Sponsor do not find it prudent to put more equity into this deal given the current capital structure and the aforementioned market backdrop. At this time, the common equity investment is materially impaired, and repayment at any level is not clear."{{Cite web |last=Nicoll |first=Alex |title=Adam Neumann's new startup Flow faces trouble in Nashville |url=https://www.businessinsider.com/adam-neumanns-startup-flow-faces-trouble-in-nashville-2024-8 |access-date=2025-01-02 |website=Business Insider |language=en-US}}

In May 2025, YieldStreet sold the luxury apartment building 2010 West End to Tishman Speyer for $112 million.{{Cite web |last=Parker |first=Kevin |date=2025-05-13 |title=Tishman Speyer Expands Global Residential Portfolio with 2010 West End Avenue in Nashville |url=https://www.citybiz.co/article/693625/tishman-speyer-expands-global-residential-portfolio-with-2010-west-end-avenue-in-nashville/ |access-date=2025-05-18 |website=citybiz |language=en-US}} The sale proceeds fell short of covering the $118.75 million senior loan resulting in a complete loss for all equity investors via the YieldStreet platform.{{Cite web |title=Yieldstreet {{!}} Online Alternative Investments |url=https://www.yieldstreet.com/activity-details/342315/72387c51-3129-11f0-97c7-abb58ad84320 |access-date=2025-05-18 |website=www.yieldstreet.com |language=en-us}} The building was originally purchased for $158.7 million in December 2021.{{Cite web |title=2 Firms Guide $112M Buy Of Nashville Apartment Tower - Law360 Real Estate Authority |url=https://www.law360.com/real-estate-authority/articles/2338917 |access-date=2025-05-18 |website=www.law360.com |language=en}} The initial equity investment funded via YieldStreet investors was for $19.2 million.{{Cite web |title=Yieldstreet {{!}} Online Alternative Investments |url=https://www.yieldstreet.com/activity-details/342315/1c481241-7f84-11ee-86e7-65f98f3cde8a |access-date=2025-05-18 |website=www.yieldstreet.com |language=en-us}}

Yieldstreet attracted attention in 2020 for an $89 million default in their marine portfolio, with YieldStreet alleging in federal district court in Manhattan that the borrower, the Lakhani family, "literally lost track of many vessels, some larger than three football fields."{{cite web |last1=Boston |first1=Claire |date=May 8, 2020 |title=YieldStreet Investors Are Learning the Meaning of High Risk |url=https://www.bloomberg.com/news/articles/2020-05-08/yieldstreet-investors-are-learning-the-meaning-of-high-risk |website=Bloomberg.com}}

Shortly thereafter, Yieldstreet obtained an injunction from the UK High Court that froze $76.7 million in Lakhani family assets.{{cite web |last1=Boston |first1=Claire |date=October 6, 2020 |title=YieldStreet Wins $77 Million From Family It Accused of Fraud |url=https://news.bloomberglaw.com/private-equity/yieldstreet-wins-77-million-against-family-it-accused-of-fraud |website=Bloomberg Law}} The recovery remains ongoing.

In 2020, YieldStreet invested a $23.3 million equity stake in Generation Atlanta, a luxury multi-family complex built in 2020 in Downtown Atlanta. Although according to the YieldStreet website the status of the investment is "Fully repaid", the property's owner, Frankforter Group, who is also the sponsor of the YieldStreet equity offering,{{Cite web |title=Atlanta Multi-Family Equity I - Yieldstreet |url=https://www.yieldstreet.com/offering/3QtKBQ/atlanta-multi-family-equity-i/ |access-date=2025-01-02 |website=www.yieldstreet.com |language=en-us}} defaulted on the $104.4 million mortgage resulting in complete impairment of the equity investment. The foreclosure auction was scheduled for September 3, 2024.{{Cite web |last=Staff |first=T. R. D. |date=2024-09-03 |title=Frankforter Group faces foreclosure notice at downtown Atlanta apartments |url=https://therealdeal.com/national/atlanta/2024/09/03/frankforter-faces-foreclosure-on-atlanta-apartments/ |access-date=2025-01-02 |website=The Real Deal |language=en}}

In September 2023, YieldStreet agreed to pay a $1.9 million fine to settle charges with the SEC that they failed to disclose risks associated with the collateral behind their vessel deconstruction security offerings.{{Cite news |title=US regulator fines Yieldstreet over disclosure failures |url=https://www.reuters.com/legal/yieldstreet-pay-us-penalty-over-investor-disclosure-failures-2023-09-12/ |archive-url=http://web.archive.org/web/20231013083437/https://www.reuters.com/legal/yieldstreet-pay-us-penalty-over-investor-disclosure-failures-2023-09-12/ |archive-date=2023-10-13 |access-date=2025-02-03 |work=Reuters |language=en-US}}

In November 2024, Sonn Law Group, along with Peiffer Wolf, secured a preliminary settlement of up to $9.95 million for investors in three YieldStreet private funds: Vessel Deconstruction I, Vessel Deconstruction III, and Louisiana Oil and Gas. After extensive negotiations, a settlement was reached and Southern District of New York U.S. District Judge Victor Marrero granted preliminary approval. The proposed settlement includes a $6.2 million cash fund for the investors, as well as a waiver of $2.75 million in fees.{{Cite news |date=2024-11-14 |title=Sonn Law: Yieldstreet Investors Reach Preliminary Approval of $9.95 Million Class Action Settlement |url=https://www.wsj.com/articles/sonn-law-yieldstreet-investors-reach-preliminary-approval-of-9-95-million-class-action-settlement-c2289c70?mod=Searchresults_pos1&page=1 |access-date=2025-01-05 |work=Wall Street Journal |language=en-US |issn=0099-9660}}

{{As of|2024|11|22|df=US}}, YieldStreet is in talks to raise another round of capital. YieldStreet has hired advisors and is targeting $75 million to $100 million for the round. They reportedly are also considering a sale or a combination capital raise plus sale but the timing is unclear.{{Cite web |last=Beltran |first=Luisa |title=Yieldstreet seeks $75-$100 million in new funding as the investment platform weighs sale |url=https://fortune.com/2024/11/22/yieldstreet-fundraising-venture-alternative-khosla-ventures-thrive-capital-greycroft-private-equity-payments-fintech-fortus/ |access-date=2025-01-05 |website=Fortune |language=en}}

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Category:Companies based in Manhattan

Category:Investment companies based in New York City