Yieldstreet

From Wikipedia, the free encyclopedia

Yieldstreet is an American company based in New York City.[1] The company focuses on investments and other similar areas.[1][2] Yieldstreet provides investments in art, marine, legal, and various other industries.[3][4][5]

History[]

Yieldstreet was founded by Milind Mehere and Michael Weisz.[3][6][7] Mehere was previously a co-founder of Yodle and has led the company since it was started.[8]

Yieldstreet acquired Athena Art Finance from The Carlyle Group for $170 million in April 2019.[9] Yieldstreet then acquired WealthFlex to integrate a self-directed IRA functionality for their investors later in 2019.[3]

The Yieldstreet Prism Fund was introduced in March 2020 as a multi-asset closed-end fund with quarterly distributions,[10] that contains a blended portfolio of asset classes and cash, allowing investors to access multiple alternative asset classes with a single investment.[10] Yieldstreet's individual offerings are typically only available to accredited investors, but the Yieldstreet Prism Fund does not involve any income or net worth minimums.[2][4][11]

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.[12]

Controversy[]

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."[13]

Shortly thereafter, Yieldstreet obtained an injunction from the UK High Court that froze $76.7 million in Lakhani family assets.[14] The recovery remains ongoing.[13]

References[]

  1. ^ a b Tan, Gillian; Boston, Claire (February 25, 2021). "YieldStreet Weighs Options Including Sale, Starting Own SPAC". Bloomberg News. Retrieved October 7, 2021.
  2. ^ a b Fuscaldo, Donna (January 8, 2019). "YieldStreet's Alternative Investment Marketplace Booms In Times Of Volatility". Forbes. Retrieved October 7, 2021.
  3. ^ a b c Azevedo, Mary Ann. "Yieldstreet raises $100M as it mulls going public via SPAC, eyes acquisitions". TechCrunch.
  4. ^ a b Lim, Dawn; Michaels, Dave (August 12, 2020). "Two U.S. Agencies Examining Investments Sold by Crowdfunding Site YieldStreet". The Wall Street Journal.
  5. ^ Saul, Josh; Boston, Claire (November 8, 2018). "Populism Comes to Wall Street: YieldStreet wants to make exotic bets available to individual investors online". Bloomberg L.P.
  6. ^ Baer, Drake (June 19, 2020). "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". Business Insider.
  7. ^ Baer, Drake (June 23, 2020). "Yieldstreet founder Milind Mehere". Insider Inc.
  8. ^ Verma, Anuradha (March 4, 2016). "Yodle co-founder Milind Mehere backs realty broking firm Coldwell Banker India". VCCircle.
  9. ^ Dafoe, Taylor; Schneider, Tim (April 10, 2019). "Athena Art Finance Was Founded With $280 Million in Funding. It Was Just Sold for Only $170 Million". Artnet.
  10. ^ a b Fuscaldo, Donna (February 18, 2020). "BlackRock Makes Alternative Investment Push With YieldStreet Partnership". Forbes.
  11. ^ Fitzgerald, Maggie (June 2, 2021). "Alternative investments platform Yieldstreet raises $100 million amid pandemic growth". CNBC.
  12. ^ Frank, Robert (2021-11-12). "Yieldstreet launches fund for smaller investors to bet on art". CNBC. Retrieved 2021-12-02.
  13. ^ a b Boston, Claire (May 8, 2020). "YieldStreet Investors Are Learning the Meaning of High Risk". Bloomberg.com.
  14. ^ Boston, Claire (October 6, 2020). "YieldStreet Wins $77 Million From Family It Accused of Fraud". Bloomberg Law.
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