NEW YORK--(BUSINESS WIRE)--Yieldstreet, a top multi-asset alternative investment platform driven to reduce friction and provide previously unattainable access to alternatives for millions of people, last week launched the first pre-term liquidity event on a private market investment and fulfilled a key objective from their recent Series C fundraising announcement.
This feat is an extension of new technology built to offer liquidity via a digital tender offer to shareholders of the Yieldstreet Prism Fund, a ‘40 Act Fund, reducing friction to an archaic process. To date, the Prism Fund has conducted quarterly tender offers beginning in the second quarter of this year and expects to continue to conduct them on a quarterly basis.1 Yieldstreet is now further applying these technologies to offer investors in private market offerings the chance to liquidate at least a portion of their investment prior to the investment's expected term. This follows Yieldstreet’s mission to democratize alternatives by creating more liquidity events across the platform and reduce a meaningful barrier for alternative investments adoption by retail investors.
“At every turn, we are upending the traditional dynamics of alternative investing and making them more accessible,” said Michael Weisz, Co-founder and President of Yieldstreet. “Many investors have grown frustrated at the stubbornly low-yield environment we’ve been in for the last decade and have looked to alternatives to help generate above-public market returns. However, not all investors can afford to lock-up capital for some of the durations needed to extract the private market’s premium. We hope this new liquidity option enables new investors to become more confident knowing their alternative investments will be more liquid.”
To begin, Yieldstreet offered investors in a private debt note backed by consumer loans the chance to either partially or completely reduce their stakes, effectively reducing the offering’s duration to initial investors by 20 months. In time, Yieldstreet expects to offer liquidity events on additional eligible offerings and will look to offer the tendered investments on the platform to new investors, effectively creating a secondary market for alternatives.
Yieldstreet is reimagining the way wealth is created by providing access to alternative investments previously reserved only for institutions and the ultra-wealthy. Yieldstreet’s mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Commercial, Consumer, Art, Marine, Legal Finance and Aviation. Since its founding in 2015, Yieldstreet has funded over $2.4 billion of investments and is committed to making financial products more inclusive by creating a modern investment portfolio. The company, headquartered in New York City with offices in Brazil, Greece, and Malta, is backed by leading venture capital firms. Join the movement at www.yieldstreet.com.
1 The Yieldstreet Prism Fund intends to offer to repurchase shares from investors at the discretion of the Fund’s Board of Directors and depending upon the performance of the Fund. The Fund will limit the number of shares to be repurchased in any calendar year to no more than 20% of the number of shares outstanding, or no more than 5% in each quarter. If the number of shares submitted for repurchase by investors exceeds the number of shares the Fund seeks to repurchase, the Fund will repurchase shares from investors on a pro-rata basis, and not on a first-come, first-served basis.
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@example.com 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 persons 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.