Invest in a short term 180-day secured note. The note issuer (a subsidiary of Yieldstreet) will use the capital raised to prefund upcoming investment offerings before they launch on the platform.

WHY WE LIKE THIS OPPORTUNITY

NO FEES
Yieldstreet will not charge fees on this investment.

LIQUIDITY
The notes are expected to generate a fixed return over the duration and will offer investors liquidity at 6 months (180 days).

SHORT PREFUND DURATION
Offerings prefunded with the proceeds of the notes typically launch on the platform within 60 days of prefunding. As a result, the proceeds of the notes are expected to be used to prefund multiple offerings over their 180-day term.

ESTABLISHED PREFUNDING WORKFLOW
YieldStreet has been prefunding offerings via warehouse financing before they launch on the platform since January 2018 with its institutional warehouse provider. This is an established workflow and YieldStreet is now providing its investor community the opportunity to earn yield by prefunding investments.

SECURITY INTEREST
The trustee, for the benefit of the noteholders, will have a security interest in all assets of the note issuer (an affiliate of YieldStreet), including cash in a deposit account and loans made to SPVs to prefund investments.

Risk mitigation

Most of the investments launched on YieldStreet’s platform have been fully allocated.

Risk mitigation

The note issuer may launch multiple series of short term notes. Every series of notes shares the same collateral pool, which means to the extent that multiple series of notes are outstanding at the same time, offerings that are launched on the platform that are prefunded with the proceeds of one series of notes may be used to repay any other series of notes. No series of notes are directly associated with any particular offering. During the 85-day grace period, YieldStreet is required to use commercially reasonable efforts to offer on the platform the investments prefunded with the proceeds of the notes or to otherwise sell or liquidate either the loans made to the SPVs or the investments made by such SPVs in order to raise the amount necessary to repay the matured notes.

Risk mitigation

Any funds not utilized for making an investment will be held in a deposit account in which the trustee, for the benefit of the noteholders, will have a security interest. The 85-day grace period, together with YieldStreet’s requirement to use commercially reasonable efforts to offer on the platform the investments funded with the proceeds of the notes or to otherwise sell or liquidate the loans or such investments, is intended to provide YieldStreet with additional time to raise the funds necessary to make payments on a series of notes. Upon the launch of this series of notes, YieldStreet will purchase 5% of the aggregate notes issued in this series in a first loss position (i.e. $500,000 of a $10,000,000 note). In other words, upon the occurrence of an event of default, the notes held by YieldStreet will only receive payments after all other noteholders have received all interest, additional interest and principal on their notes.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. 2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more] 3 “Annual interest” represents an annual target rate of interest and “term” represents the estimated term of the investment. Such target returns and estimated term are projections of the returns or term and may ultimately not be achieved. Actual returns and term may be materially different from such projections. These targeted returns and estimated term are based on the underlying agreement between the SPV and borrower or originator, as applicable. 4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share. 5 The Fund will cease investing and seek to liquidate the Fund’s remaining portfolio no later than 48 months after the Fund’s initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund’s portfolio.