Yieldstreet, a multi-asset alternative investment platform providing access to alternatives for millions of people, has launched the first pre-term liquidity event on a private market investment and fulfilled a key objective from its 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.
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 democratise 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,” says 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.
