Yieldstreet is a New York-based alternative investments platform with more than $3 billion in total investments. Since its establishment in 2015, Yieldstreet has delivered market-beating returns and currently has more than 400,000 registered members. According to McKinsey & Co., the average U.S. stocks have delivered annualized returns ranging from 6.5% to 7%. In comparison, Yieldstreet’s net annualized return rate stands at 9.71%.
Fiscal Third-Quarter Earnings Snapshot
As equities remained choppy, investors have been focusing on alternative investment sources over the past few months. Yieldstreet, capitalizing on this opportunity, offered 28 new investment opportunities to its registered members. As a result, the platform’s total assets under management (AUM) increased 8.2% quarter-over-quarter to $3.004 billion. Yiedstreet’s total AUM rose 57.3% from the same period last year. Real estate is Yieldstreet’s largest asset class, accounting for 25.5% of the total active AUM.
The platform essentially raised $227 million in AUM last quarter. Around $69.1 million of the total AUM raised is accrued to short-term notes. New investments in private credit amounted to $56.2 million, while new structured notes investments came in at $31.9 million.
Around 11 past investments, worth approximately $1.5 billion, matured in the third quarter of 2022. Yieldstreet achieved a weighted internal rate of return (IRR) of 13.75%, excluding short-term notes, on these matured investments.
Future Earnings Growth Prospects
While the markets have remained volatile amid heightened macroeconomic headwinds, Yieldstreet’s portfolio has delivered resilient returns. The platform is also aggressively working on expanding its asset base to include lucrative assets such as aircraft and art.
In the last quarter, Yieldstreet provided investors with the opportunity to invest in two Boeing Co. BA passenger aircraft, which are leased to United Airlines Holdings Inc. UAH, the parent company of United Airlines, until 2026. Air traffic, which has already risen by 50% from the prepandemic levels, is expected to rise further, boosting investor returns substantially.
Yieldstreet Founder and CEO Milind Mehere said in an interview, “Now is the time to buffer your portfolio with alternative-type investments that may have a lower correlation to the broader market to help generate some wealth in this environment.”