Yieldstreet, a leading multi-asset alternative investment platform, has closed a strategic $50 million follow-on investment, led by London-based Mayfair Equity Partners, a leading technology and consumer growth investor.
The latest capital raise, following on from Yieldstreet’s Series C funding round, highlights the growing recognition of Yieldstreet’s transformational digital platform.
Yieldstreet was established to provide retail investors access to alternative investment opportunities previously reserved for institutions and ultra high-net worth individuals. Since its foundation, Yieldstreet has funded over $2.5 billion investments to date and has over 325,000 members on its platform.
Mayfair Equity Partners will support Yieldstreet’s growth plans by enabling further investment in the Company’s technology roadmap and its sales and marketing capabilities. This latest investment will also facilitate Yieldstreet’s expansion of its distribution capabilities internationally, as outlined in the original Series C announcement.
“All investors, here in the U.S. and around the globe, should have the ability to modernize their portfolios with investments that, until now, have been walled-off. As a leading U.S. multi-asset alternative investment platform, we are looking forward to expanding our capabilities as we grow our U.S. business and service new international investors. Using our data- and insights-driven approach, we will continue to provide retail investors access to the assets they need to build diverse and modern portfolios,” said Milind Mehere, Founder and CEO of Yieldstreet.
“Our growing investor community continues to remind us that the demand for alternative investments is as great as ever. We firmly believe that the 60/40 portfolio model no longer fits its original purpose. The asset allocation problems facing retail investors in the U.S. are shared by investors globally. We believe Yieldstreet has developed a solution via its digital-first investment platform that will help solve these problems for everyone.” said Michael Weisz, Founder and President of Yieldstreet.
“Through its simple and user-friendly platform, Yieldstreet has opened up the alternative investment asset class to a broader group of investors than ever before. Simultaneously, Yieldstreet is providing managers of these assets with access to a very large source of capital that had previously been unavailable to them,” said Kunal Dasgupta, Partner at Mayfair Equity Partners. “Our investment philosophy is rooted in supporting exceptional managers to grow valuable businesses, and Milind, Michael, and their leadership team fit that category perfectly. Working closely together, we will help bring Yieldstreet’s innovative platform to more retail investors than ever before.”
The investment from Mayfair Equity Partners coincides with rapid growth in Yieldstreet’s market, supported by positive demand and supply drivers. On the demand side, retail investors have historically been severely under-allocated to private markets and are expected, according to market research conducted by Oliver Wyman, to double their allocation to alternative assets in the coming years. This is being driven by retail investors’ desire for diversification and a lack of correlation to the public markets, as well as Yieldstreet’s user-friendly platform offering alternative investments at low minimum commitments. On the supply side, there is growing interest from fund managers to access retail investors who provide funding diversification, and this dynamic is transforming the way alternative assets are distributed to investors.
As recently reported by WSJ, trends show a shift in consumer behavior in millenials and succeeding generations shunning the traditional financial advisor led model in pursuit of more control, optionality, transparency and utility. This, paired with the upcoming largest transfer of wealth of (estimated $35T) from Baby Boomers to younger generations in the next decade, support Yieldstreet’s thesis.
PJT Partners (corporate finance), Oliver Wyman (commercial due diligence) and Wilson Sonsini Goodrich & Rosati (legal) served as advisers to Mayfair Equity Partners.
Yieldstreet is reimagining the way wealth is created by providing access to alternative investments previously reserved only for institutions and ultra-high net worth individuals. Yieldstreet’s mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Commercial, Consumer, Art, Marine, Legal Finance and Aviation. Since its foundation in 2015, Yieldstreet has funded over $2.5 billion of investments and is committed to making financial products more inclusive by enabling retail investors to build modern investment portfolios. The company, headquartered in New York City with offices in Brazil, Greece and Malta, is backed by leading venture capital firms, large family offices and private equity investors. Join the movement at www.yieldstreet.com.
About Mayfair Equity Partners
Mayfair Equity Partners is a leading tech and consumer growth investor. Its primary focus is on building strong partnerships with exceptional management teams. Mayfair has an established track record in supporting digitally enabled businesses, including OVO Group, a technology-enabled market leader in the retail energy space, Parcel2Go, the UK’s leading online marketplace for parcel delivery and international freight shipping services, atHome Group, the market leading property and auto classifieds platform, and Fox International (exited), the leading fishing enthusiast brand platform in Europe.
Mayfair Equity Partners
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