Expands the range of innovative capital deployment to new markets
Yieldstreet, the digital wealth management platform, announced continued growth today with the launch of a new asset class vertical, Private Business Credit. The new vertical becomes Yieldstreet’s fifth asset class, along with its Real Estate, Legal, Marine, and Art verticals.
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“We see an excellent opportunity to provide private business credit to America’s growing companies balancing the capital needs of borrowers with investors’ needs to generate predictable current income”
“Our mission is to build and introduce innovative wealth creation products,” said Milind Mehere, Founder and CEO of Yieldstreet. “This new asset class, Private Business Credit, does that by allowing our existing and future investors to diversify their portfolios through new income-generating opportunities.”
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The new vertical will invest in high-growth companies and make loans between $3 million and $30 million in: commercial term receivables, inventory purchase orders, consumer installment loans, equipment acquisition, auto loans, and other assets. Through flexible-term loans, investors can gain exposure to a broadly diversified range of assets. Private business credit, expected to continue to rise, is about a $1 trillion lending industry a year, primarily funded by banks, hedge funds and venture capital.
Yieldstreet expects to deploy hundreds of millions in flexible capital with the Private Business Credit team to growing businesses across America, partner relationships and originating partners. The Private Business Credit unit plans to extend single tranche and multi tranche term loans in partnership with consumer and commercial originators, banks, specialty finance companies, credit funds, and other asset aggregators.
“The world has really changed in the last four months,” Yieldstreet President Michael Weisz said. “Growing businesses need access to capital even more as the pandemic has disrupted their access to credit because traditional banks are slow to lend. With interest rates at historic low levels, investors want better yields typically less correlated to the market and with the potential for consistent passive income. This is designed to answer both of those needs.”
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