NEW YORK–(BUSINESS WIRE)–Jan 19, 2023–
Yieldstreet, a leading private market alternative investment platform, today announced its performance results for the 2022 calendar year. The report helps highlight increasing retail investor activity within private markets and showcases Yieldstreet’s strongest year on record.
Key highlights from 2022 include:
- Yieldstreet’s members made $1B in investments on the platform in 2022 1 — the most ever invested in a single year. Since Yieldstreet’s inception in 2015, more than $3B has been invested in total. 2
- The firm launched more than 135 diversified private market offerings in 2022, the most ever for the company.
- Last year also marked Yieldstreet’s highest year of investor distributions. In total, the company paid out more than $600M in returns and principal to investors in 2022. 3
- In August 2022, Yieldstreet investors realized their greatest return to date with Williamsburg Multi-Family Restructuring Equity. The opportunity delivered a 41% net annualized return, surpassing initial targets of a 15-17% net annualized return. 4
“The traditional 60/40 portfolio of stocks and bonds just had one of its worst annual returns in history,” said Yieldstreet Founder and CEO Milind Mehere. “Private markets are a fundamental part of a modern portfolio, but don’t just take it from me; investment managers like BlackRock recommend supplementing your portfolio of stocks and bonds with up to 20% private market alternatives.”
“A strategic allocation to alternatives can be especially useful during periods of public market volatility. Research shows that during the Global Financial Crisis and the five most significant stock downturns since, private markets have delivered an average of 16% greater returns than the S&P 500. 5 That type of performance is solid proof of an opportunity to build real wealth beyond the stock market roller coaster,” said Mehere.
By investing funds through Yieldstreet, members were able to access more private market alternative asset classes than via any other platform. This empowered an entirely new generation of retail investors to take advantage of diverse investments within Private Real Estate, Venture Capital, Private Equity, Private Credit, Short Term Notes, Structured Notes, Diversified Funds, Transportation, and Art.
Yieldstreet believes that private market alternatives should be a fundamental part of an investment portfolio. The company empowers investors to grow their wealth outside of the stock market by curating private market alternatives from some of the top investment managers, all on one easy to use platform.
Yieldstreet provides access to a broad range of private market options to help investors diversify beyond the ups and downs of the stock market. Its award-winning platform provides access to investment products across a range of asset classes such as Real Estate, Venture Capital, Private Credit, and Art.
Since inception, offerings on Yieldstreet have historically delivered an annualized net return of 9.61%, in line with their targets. Past performance is not indicative of future results. For disclosure regarding this return figure, detailed platform performance and asset class insights, click here.
1. Source: Yieldstreet. As of 12/15/2022. Figure inclusive of leverage and Short Term Notes.
2. Source: Yieldstreet. As of 12/01/2022. Figure inclusive of leverage and Short Term Notes.
3. Source: Yieldstreet. As of 12/01/2022. Cumulative historical interest and principal returns year-to-date are based on unaudited internal calculations, are subject to change, and may differ from fund returns and payments that an investor will actually receive.
4. Performance is calculated on a Net Asset Value (NAV) to NAV basis at time of settlement, and reflects the deduction of management fees and all other expenses charged to investments. Performance is based on unaudited internal calculations and subject to change. Past performance does not guarantee future results. It should not be assumed that other current offerings from Yieldstreet or its offerings in the future will be profitable or will equal the performance of this past offering. The historical average net realized return, using an internal rate of return (IRR) methodology, with respect to all matured investments, except our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from 7/1/15 through and including 12/1/22, is 9.7%.
5. As of 10/15/2022. The analysis represents the largest quarterly drawdowns in the S&P 500 since 1/1/2008. “Private markets” represents an equally weighted (33.3%) blended index across Private Real Estate, Private Equity and Private Credit. Private Real Estate consists of the NCREIF Property Index (33.3%), Private Equity consists of the Preqin Private Equity index (33.3%), and Private Credit consists of the Preqin Private Debt Index (16.65%) and Cliffwater Direct Lending Index (16.65%). Past performance is not indicative of future results. It is not possible to invest directly in an index of private market assets. Unless otherwise noted, financial indices assume reinvestment of dividends. All indices are unmanaged.
All securities involve risk and may result in significant losses. Alternative investments involve specific risks that may be greater than those associated with traditional investments; are not suitable for all clients; and intended for experienced and sophisticated investors who meet specific suitability requirements and are willing to bear the high economic risks of the investment. Investments of this type may engage in speculative investment practices; carry additional risk of loss, including possibility of partial or total loss of invested capital, due to the nature and volatility of the underlying investments; and are generally considered to be illiquid due to restrictive repurchase procedures. These investments may also involve different regulatory and reporting requirements, complex tax structures, and delays in distributing important tax information.
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