Retail investors tend to have most of their investments in stocks, funds, and even crypto. However, there are so many more investment opportunities for people to get into ranging from art to real estate. Yieldstreet is one platform that offers a variety of investment options.
Yieldstreet announced on Oct. 12 that it has partnered with the New York Giants. The deal is reportedly worth approximately $1 million. The where the platform will have signage advertising at the Giants’ home field, MetLife Stadium. The platform can also use the team for marketing material.
Yieldstreet hopes to make more consumers aware of alternative investment products. In May, the Giants partnered with Grayscale Investments—the world's largest crypto asset manager. Yieldstreet has other partnerships in the sports industry. It partnered with NBA player Spencer Dinwiddie in August.
What is Yieldstreet?
Yieldstreet is an alternative investment platform that allows people to invest in different forms of assets including non-traditional ones. The platform allows you to invest in assets like real estate, notes, art-backed loans, consumer loans, and mortgage loans. Many of the investment options have a short-term lifespan like six-month and 12-month periods. Yieldstreet gives retail investors the opportunity to invest in assets that are usually only available to institutional or wealthy investors.
What investment options does Yieldstreet offer?
Yieldstreet offers some basic products like savings accounts and Roth IRAs. IRA members can invest in other Yieldstreet products with the IRA. One of the company’s biggest products is its Yieldstreet Prism Fund. The Prism Fund has holdings in over five different asset classes like real estate, art, consumer, commercial, legal, and more.
Real estate holds the most weight in the fund, with a current asset allocation of 34.3 percent. Yieldstreet claims that the fund has raised over $87.8 million in a few years. The minimum investment required is $500, and there’s an 8 percent distribution rate, where distributions are made quarterly. The fund has a set termination date of March 2024.
Some of Yieldstreet’s new products include its short-term and structured note investments. Notes are debt securities that are usually tied to the performance of a specific security like a stock or bond. With the short-term note invest product, users can invest money in a six-month note, where Yieldstreet uses the capital raised to fund its future investment products. The minimum investment required is $1,000, and there is a 4 percent annual yield for the term of the note. Interest payments are made monthly to investors.
The current structured notes products that the platform offers consist of a portfolio of structured notes that are tied to the stocks of Best Buy (BBY), Viacom (VIAC), and VF Corp (VFC). With a $15,000 minimum investment required, investors will have an annual yield of a 10 percent–11 percent yield for a term of 24 months.
There are quarterly coupons, or interest payments, and a 30 percent downside protection to help protect investors from losses. So, if a stock decreased by 10 percent at the end of the term from the original price you entered at you would still receive coupon payments because the price fell within that 30 percent downside protection value.