Yieldstreet is a unique offering within the private investment market. Akin to a private investment supermarket, the platform claims to offer access to a range of investments not previously available to smaller investors. Despite accessibility for non-accredited investors, the $10,000 minimum eliminates small investors from the platform. This might be a good thing as private market investing is risky with the possibility for users to lose all of their capital.

The website footnotes state that private placements are speculative and involve a high degree of risk. The lack of liquidity adds another layer of friction for those looking for easy access to their investments. Yieldstreet users should be prepared to keep their money on the platform for longer periods, from several months to several years.

 

Even the income offers are less liquid than a high-yield money market account where you can receive your capital within a day or two.

The website and fee structure are transparent. Fees are typically higher than you’ll encounter trading in the public financial markets. Higher fees are not unusual for these types of investments.

Yieldstreet is a marketplace of private market alternative investments for both accredited and non-accredited investors. The platform of investments is continually shifting, and most investments cater to accredited investors. Investors can access an ownership interest in a range of asset classes spanning art, various types of debt funds, commercial real estate, legal and venture capital. Minimums vary and typically start at $10,000. Fees and returns are reported per project.

The platform is best suited for investors comfortable with higher risk levels and those seeking assets less correlated with traditional investments.

 

 

 

 
  • Risk-tolerant investors seeking access to private market investments, formerly only available to the largest wealthy and institutional investors.
  • Those who want access to a fund that includes a diverse mix of alternative assets.
  • Investors who want to fund new businesses with venture capital.
  • Individuals who strive to own an interest in large apartment complexes and commercial real estate.
  • Individuals seeking entry into the legal funding market.
  • Speculators who want to own a fractional share of debt financing high-end art.

 

Yieldstreet is only for people who are comfortable with risk and can afford to lose their entire investment. The $10,000-plus account minimums eliminate those with smaller investment portfolios.

Yieldstreet was founded in January 2015 by Dennis Shields, Michael Weisz and Milind Mehere. The alternative investment management firm is headquartered in New York City, with offices in Brazil, Greece and Malta. The company’s goal is to open the door of institutional private investments to average investors.

The March 2024 partnership with Wilshire Advisors LLC claims to elevate Yieldstreet’s platform, adding data, analytics and due diligence expertise. The collaboration is adding model portfolios to improve users’ alternative investment diversification.

A 2024 bankruptcy of Yieldstreet associate Synapse Financial Technologies has led to the recent freezing of many accounts, leaving some customers in the lurch.

Pros

 

  • Wide range of asset classes within one portal.

  • Offers for accredited and non-accredited investors.

  • Low correlation with broad investment markets.

  • Platform is easy to navigate with a good user experience.

  • Strong customer service options.

Cons

 

  • High minimum investment requirements.

  • Some offers have high fees.

  • Riskier and less regulated than publicly traded investments.

  • Can’t view all available offers without signing up for an account.

  • Most investments are only available to accredited investors.

  • Longer lock-up periods than public market investing.

The fees and costs depend upon the offer. There are two layers of fees. The first layer consists of fees that Yieldstreet pays to the sub-advisor or manager of the offer. The second layer of fees consists of investor costs.

The fees are transparent – investors can view them on the individual offering pages for each specific investment. At the outset, you’ll know the investment’s expense ratio, stated target return expectation and all important details. All target and historical returns are listed net of fees.

According to Yieldstreet, investor fees range from 0%, on the short-term notes program, to 2.5% or more of the investment on other offers. As is customary with some hedge funds, Yieldstreet may also receive a percent of the excess returns, above a certain level.

 

For example, the popular Alternative Income Fund, previously known as the Prism Fund, charges an annual management fee of 1% of assets invested within the fund, with a maximum annual administrative expense of 0.5%.

The companies that list investment opportunities on the Yieldstreet platform are usually charged a listing fee and other fees as well.

Yieldstreet individual retirement accounts, or IRAs, are managed by Equity Trust, a self-directed IRA custodian. A $50 account set-up fee is required. Tiered fees increase based on account size and range from $250 per year for accounts worth $100,000 or less to $450 per year for those worth more than $250,000.

Account Costs

COMMISSION COST (STANDARD STOCK/ETF TRADES, ONLINE ONLY) BROKER-ASSISTED OR PHONE TRADE COST ACCOUNT MINIMUM (TO OPEN) ANNUAL ACCOUNT FEE ACCOUNT TRANSFER FEE (PARTIAL) FULL ACCOUNT TRANSFER/CLOSURE FEE
N/A N/A Varies per offer. Most offers require a $10,000 minimum investment. $0.00 $0.00 through Yieldstreet Wallet or cash account. $0.00 through Yieldstreet Wallet or cash account.

The number of platform offerings varies, based upon availability. Only registered users can view all of the current offers. Those who have not yet signed up can view historical and closed listings and a sample of available current offers. Outside advisors manage and oversee many of the investment offers, which tends to add an extra layer of fees.

Users can screen for the types of assets they’re seeking. The screeners go from broad to more narrow filters.

Assets and screening filters are categorized by:

Asset Type:

 
  • Equity – Higher risk and return investments that benefit from price appreciation and capital appreciation.
  • Credit – Lower risk and return assets deliver regular cash flow.
  • Other – This catch-all asset category includes both income and appreciation potential. 

 

Next, users can select from 10 asset classes including:

 
  • Art.
  • Crypto.
  • Legal trial funding.
  • Multi-asset class fund.
  • Private credit.
  • Private equity.
  • Real estate.
  • Short-term notes.
  • Transportation.
  • Venture capital.

 

Screening for minimum investment amount ranges from $100 up to $30,000. However, there’s no guarantee that there will be an investment that coincides with your desired minimum investment amount.
All investments are illiquid, unlike investing in stocks and funds in the public markets. The term of individual investments ranges from three months through seven years. Before investing, review the accompanying disclosures and information that delineates the lock-up period for your investment.

 

Some investments might be IRA eligible, while others are not. Those looking to fund an IRA should screen for IRA-eligible offers.

All offers are available to accredited investors. On occasion, funds are available for non-accredited investors. Presently, the Yieldstreet Alternative Income Fund is always open and available to non-accredited investors. Other offers close when funding needs are fulfilled. All offers are subject to change.

Following are some of the current offers, and many are subject to change as funding is fulfilled and new offers become available:

Sample List of Current Product Offers

The following offers are available now and accessible to view, before signing up for the platform:

NAME DETAILS MINIMUM INVESTMENT TERM
Short Term Note CXXXIX Diversified mix of collateralized loan obligations (CLOs) – for investors seeking monthly cash flow. $10,000 6 months
Diversified Art Debt Portfolio III Two loans secured by 21 artworks valued at $134 million; art managed by Athena Art Finance and provides quarterly income. $10,000 36 months
Residential Mortgage Opportunistic Fund Pool of residential first mortgage loans that are now trading at discounts to the secondary market $15,000 14 months
Yieldstreet Alternative Income Fund The alternative income fund currently holds a portfolio of various private market investments. Income is distributed quarterly and as of June 30, 2024 has $152 million in assets under management. Available to non-accredited investors. $10,000 Quarterly liquidity

Yieldstreet’s customer service portal is its support page. At that destination, you can find a phone number, live chat and email access. After member login, you can also schedule a call. Those with specific questions can use the search bar, or delve into the Frequently Asked Questions. A brief call to Yieldstreet’s main number, before logging in, led us to leave a message and wait for a call back within 24 hours.

The online support portal includes information about navigating the platform, taxes, available offers, portfolio management, investment recommendations and security. There’s also a section titled, “Raise Capital on Yieldstreet,” for those who want to tap the portal to raise funds.

Yieldstreet offers both iOS and Android apps, each with a range of comments. As of early October 2024, the iOS app had 1,613 reviews with an average 4.7 out of 5 stars. Complaints included that some investments have defaulted, which is to be expected on speculative investments such as those on offer at Yieldstreet. There are also many favorable reviews. In general, the developers respond well and promptly to comments.

 

Yieldstreet has an easy-to-navigate website with well-labeled menu items. The platform features provide education, information and portfolio management tools:

 
  • Sign-up.
  • Investment listings.
  • Sample investment portfolio and simulator.
  • Private investment screener.
  • Account types.
  • Insight and education.

Sign-up

Investors can tour the platform for an overview without signing up to create an account. However, several features and offers are not available until an account is created. The sign-up process involves a short questionnaire and a form that offers the option to sign up with Google or Apple, or input your name and email address to sign up via email.

The questionnaire asks whether you’ve invested in private market alternative investments before, the size of your portfolio and whether you’re seeking diversification, income, capital growth or to reduce portfolio volatility. After creating the account, users can view all offers, features and a dashboard.

Investment Listings

The investment listings are comprehensive and provide detailed information. Most are available only to accredited investors. The aforementioned Alternative Income Fund is available to anyone with the $10,000 minimum investment.

Investment listing details include:

 
  • Minimum investment – most begin at $10,000.
  • Term – monthly through several years.
  • Payment schedule – monthly, quarterly or event-based.
  • Tax document – K-1 or 1099-I.
  • Projected returns and cash flow (net of fees).
  • Objective – detailed offer description.
  • Offer legal documents.

Sample Investment Portfolio and Simulator

Available from the support page, the sample investment portfolios provide users with ideas on how to craft an investment mix to fit specific goals. Details of growth, income and balanced offers are included.

Within this section, investors can use a tool to visualize the performance of a portfolio of alternative investments, based on previous offers. The portfolio simulator shows returns and cash flow scenarios over time.

Private Investment Screener

The number of available investments at any time will vary. To help investors select their alternative investments, there is a screener that sorts investments according to:

 
  • Investment goals – growth, income or balanced.
  • Asset classes.
  • Terms – maturity date. 
  • Minimums.
  • IRA eligibility.

Account Types

 
  • Individual taxable account.
  • Self-directed IRA through Yieldstreet partner Equity Trust Co. Investors cannot invest in Yieldstreet via their own self-directed IRA.
  • Entity accounts such as an LLC, partnership, S corporation or trust.

The lack of a joint taxable account is noticeable and a disadvantage for married or cohabiting partners who lack a trust.

Loyalty Program

The three-tiered Loyalty Program offers additional benefits, including investor appreciation dinners and events, for those with greater assets on the platform. The three tiers – Gold, Platinum and Diamond – begin at a $100,000 minimum for Gold and increase to a $500,000 minimum for Diamond. Benefits include meetings with private client representatives, portfolio reviews, and expedited customer support for Platinum and Diamond members.

Insight and Education

The Yieldstreet educational portal is vast and comprehensive. There are hundreds of articles spanning investing fundamentals, asset classes, IRAs, market insights, product updates and Yieldstreet performance.

Learn More
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