Warehouse finance deal provides Yieldstreet with significant capital to pursue a range of new opportunities across the growing alternatives asset class
NEW YORK–(BUSINESS WIRE)–Yieldstreet, the world’s largest direct-to-consumer online platform for investing in private markets, today announced the closing of a warehouse facility that provides access to up to $400 million from Monroe Capital LLC. This financing is the largest of its kind to date for Yieldstreet and for any alternative investment platform in the industry and enables the company to scale in the coming years.
“This landmark agreement underscores the industry’s conviction in Yieldstreet’s ability to tap into the enormous potential of private markets,” said Milind Mehere, Yieldstreet CEO. “This capital will play a key role in fueling compelling opportunities for our growing client base at record pace, and places Yieldstreet firmly at the front of the pack in achieving our mission of providing every investor access to alternative investments.”
Through this funding, investors will be able to access a significant number of new opportunities for returns with low correlation to the stock market and which were previously only available to institutions and ultra-wealthy individuals. Private markets strategies have been widely used by large investment managers around the world for decades, but before Yieldstreet, these strategies were largely inaccessible to retail investors. This fresh capital is dedicated to pursuing a number of new and compelling investment opportunities that further widen the scope and number of available offerings on Yieldstreet’s platform. The facility can be used to support several types of new investment opportunities that align with Yieldstreet’s mission across a diverse set of asset classes, including real estate, private credit, private equity, art, and beyond.
“Not only will this deal expand our suite of offerings, but it will also give us the ability to work more closely with industry-leading asset managers, sponsors, and originators across private markets, ultimately creating a richer opportunity set for our investor base,” said Michael Weisz, Yieldstreet President. “Monroe Capital is well positioned to understand our business and investor base; they crafted a bespoke facility for us across litigation finance, small business, consumer, private funds, real estate and other asset classes”
Founded in 2015, Yieldstreet has expanded investor access to private markets by creating funds with lower minimums and compelling theses that are distinct from opportunities available through more traditional channels. To date, Yieldstreet has attracted more than 400,000 users and more than $3 billion in funding across an ever-evolving suite of investment products.
“We’re thrilled to announce this lending partnership with Yieldstreet to support its growth and continue to drive capital inflows to alternative assets for retail investors,” said Kyle Asher, Co-Head of Opportunistic Credit at Monroe Capital. “We believe Yieldstreet’s unique business model and well-designed product offering place them at the pinnacle of a very exciting market. Monroe will continue to design unique credit facilities in specialty finance for industry leaders such as Yieldstreet.”
This transaction is representative of the Specialty Finance division within the Monroe’s Opportunistic Private Credit group. The group focuses on complex and special situation structured debt and equity financings covering all asset types and geographies. In 2021, the Opportunistic Group closed over 20 debt and equity transactions. The team has a broad investment mandate, flexible capital and prides itself not only on its “bottoms up” expertise but also on its ability to move quickly and efficiently and provide certainty of execution on complex transactions as evidenced by this partnership with Yieldstreet.
Yieldstreet is backed by world-class investors and advisors from leading organizations including Edison Partners, Mayfair Equity Partners, Tarsadia Investments, StepStone Group, and Greycroft.
Yieldstreet believes that private market alternatives should be a fundamental part of the investment portfolio. However, most investors don’t have access to such products. Today, Yieldstreet is empowering eligible investors to grow their wealth outside the stock market with clarity, confidence and a seat at the table. Investors can discover opportunities from top investment managers all on one easy to use platform, including real estate, private credit, private equity and others that were previously out of reach for most. Join a community of over 400,000 members who have invested over $3B on our award winning platform. Twice named to the Inc. 5000 list (#14 in 2019, #46 in 2020), Yieldstreet is backed by Edison Partners, Tarsadia Investments, Stepstone, Mayfair Equity Partners, Greycroft, Raine Ventures and is headquartered in New York City.
About Monroe Capital
Monroe Capital LLC (“Monroe”) is a premier boutique asset management firm specializing in private credit markets across various strategies, including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains offices in Atlanta, Boston, Los Angeles, Miami, Naples, New York, San Francisco, and Seoul.
Monroe has been recognized by both its peers and investors with various awards including Global M&A Network as the 2022 Small Mid-Markets Lender of the Year, Americas; Private Debt Investor as the 2021 Senior Lender of the Year, 2021 Lower Mid-Market Lender of the Year, Americas; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information, please visit www.monroecap.com.