Edison Partners lights up $62m funding for YieldStreet
Investment firm Edison Partners has led a $62 million financing in New York-based digital wealth management platform YieldStreet.
YieldStreet will use the funds to introduce additional investment, banking and wealth management product offerings in 2019.
Chris Sugden, managing partner, Edison Partners, says: “YieldStreet is democratising the next frontier of wealth management, giving retail investors access to institutional-grade investment products that were previously off limits to them.”
He adds: “There’s an important financial services element to this business as well; the ability to source and underwrite investments. This requires a blend of domain and technology expertise. Milind [Mehere, co-founder and CEO] and Michael [Weisz, co-founder and president] bring the right mix of technology and specialty finance experience to drive deals to the platform while lowering the cost of entry to investors.”
Sugden will join YieldStreet’s board.
YieldStreet offers a range of asset classes such as real estate, legal finance, marine finance, and commercial loans.
It says it has created a community of more than 100,000 members who have invested more than $600 million through its platform, with a 12% internal rate of return (IRR) for their investors to date.
The firm recently began to expand its platform to the “mass and emerging affluent markets”. For example, it recently launched YieldStreet Wallet, a Federal Deposit Insurance Corporation (FDIC) insured savings account offering 2.2% annual interest.