NEW YORK–(BUSINESS WIRE)–Yieldstreet, the digital wealth management platform, today announced continued growth with the launch of a new vertical asset class, Credit to private companies. The new vertical becomes Yieldstreet’s fifth asset class, with its Real Estate, Legal, Marine and Art verticals.
“Our mission is to build and introduce innovative wealth-creating products,” said Yieldstreet Founder and CEO Milind Mehere. “This new asset class, Private Business Credit, does this by enabling our current and future investors to diversify their portfolios through new income-generating opportunities.”
The new vertical will invest in high-growth businesses and lend between $3 million and $30 million in: term trade receivables, inventory purchase orders, consumer installment loans, equipment acquisition, auto loans and others assets. Through loans with flexible terms, investors can gain exposure to a broadly diversified range of assets. Private business credit, which is expected to continue to grow, represents a lending industry of about $1 trillion a year, mostly funded by banks, hedge funds and venture capital.
Yieldstreet plans to deploy hundreds of millions in flexible capital with the Private Business Credit team for growing businesses across America, partner relationships and home partners. The Private Business Credit unit plans to expand single-tranche and multi-tranche term lending in partnership with consumer and commercial originators, banks, specialty finance companies, credit funds and other credit aggregators. ‘assets.
“The world has really changed in the last four months,” said Yieldstreet President Michael Weisz. “Growing businesses are all the more in need of access to capital as the pandemic has disrupted their access to credit as traditional banks are slow to lend. With interest rates at historic lows, investors want to better returns generally less correlated to the market and with consistent passive income potential.This is designed to meet both of these needs.
Yieldstreet has appointed industry veterans Larry L. Curran II and Barbara Anderson to lead the private enterprise credit vertical. Curran will serve as Managing Director and Anderson as Senior Director and Head of Underwriting. The two have over 50 years of experience between them and have worked together for over a decade.
“We brought in the right team at the right time to capitalize on a big opportunity we see in the market,” Weisz said.
“We see an excellent opportunity to provide private enterprise credit to growing American companies by balancing the capital needs of borrowers with the needs of investors to generate predictable current income,” Curran said. “We seek emerging market operators with strong management teams and proven business models otherwise constrained by their size, age or asset class.”
To date, Yieldstreet has funded over $1 billion in investments through the Yieldstreet platform and returned $600 million in principal and interest to investors. In 2019, Yieldstreet more than doubled in size in terms of revenue. Private Business Credit builds on Yieldstreet’s mission to provide a growing investor base with the ability to invest in alternative assets to support investor wealth creation.
Larry L. Curran II and Barbara Anderson
Curran specializes in building companies and has over 25 years of success developing debt-based investments in the United States, South America and Europe. His expertise in identifying unique opportunities in emerging markets is now focused on the development of North American industries. Curran previously co-founded Vion Receivable Investments and i2B Capital. Curran has also served as a director of an NASD broker, angel investor, and Microsoft Gold Partner.
Anderson brings to Yieldstreet Private Business Credit over 30 years of expertise in underwriting, managing and restructuring senior asset-based secured loans. During his commercial lending career, Anderson held senior management positions at Bank Boston, LaSalle Bank, National City Bank and co-founded i2B Capital in 2015.
Yieldstreet strives to change the way wealth is created. Yieldstreet seeks to achieve this by transforming the investment landscape, opening investment access for individual investors across a range of asset classes such as real estate, shipping finance, art finance, legal financing, commercial loans and now private business credit. Based in New York with offices in Brazil, Argentina and Greece, the company is backed by $178 million in equity and debt funding from companies including Edison Partners, Greycroft, Soros Fund Management and Raine Ventures. Join the movement on www.yieldstreet.com.