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What is the Yieldstreet Prism Fund?

by Alan Daniel

The Yieldstreet Prism Fund and Current Global Paradigm Shift

We are living in extraordinary times today. From the rise and rapid adoption of technology to political strife, economic crunches, and a raging pandemic across the world, much is happening over a seemingly short time frame.

Yet many of the events taking place today are occurring due to a series of situations and actions by influential and not so influential people in the past. The present society is reaping the rewards or results of the proverbial seeds sown in the past. 

As noted earlier, the current socio-economic and political landscape is not looking so rosy. For instance, the United States has five cities in a state of protests, and COVID-19 economic destruction has done damage to the strength of the dollar and the federal balance sheet. Further, higher unemployment numbers, eviction fears, and other pressing problems such as natural disasters do not make a rosy picture.

Bond returns don’t seem appealing, stocks are generally crazy while interest rates are in the zero range, and cash in the bank gives you close to zero returns.

Now, it is not just the United States facing economic problems, protests, and general upheaval but various nations around the world. 

As such, it pays to understand the overall macroeconomic climate, technological changes, and shifts in society in such a situation. 

Sure, the first step is awareness, but the second step is action. How will you act to increase your safety, generate more income, and diversify your assets in a tumultuous world?

The Yieldstreet Prism Fund might be an option for you. I found out about Yieldstreet because I’m always on the lookout for alternative investment platforms. I subscribed to the Yieldstreet email list because I thought I could learn more about their offerings and further opportunities. The Yieldstreet Prism Fund seems like a real viable option.

Let’s find out more about this unique offering and how it could play a role in your portfolio.

Here’s What You need to know about the Yieldstreet Prism Fund

The current political and economic landscape seems very shaky. This is true in the United States and countries across the globe. In such a scenario, the only option for investors is to diversify.

That’s a critical component of the Yieldstreet Prism Fund. It enables individuals to have exposure to asset classes that were typically available to a particular class of investors. As such, the Prism Fund is one Fund that enables investments in alternative asset classes.

Now, the reason why alternative asset classes are essential is that returns for stocks and bonds do not look compelling over the next decade for a variety of reasons, COVID-19 and it’s after-effects is just one among many.

An option like the Yieldstreet Prism Fund may help to serve as a partial replacement to bonds, as it provides access to fixed-income alternative investments that provide dividends (during performing periods) until they mature. Keep in mind that it is a multi-asset fund that generally helps to protect the downside potential. That’s why it is called the Prism Fund, you invest in one Fund but have exposure to a wide array of options.

These options include:

  • Private Business Credit
  • Real Estate loans
  • Art
  • Legal Finance Fund

According to Yieldstreet, you can expect to receive quarterly distribution payments “at an annualized rate of 7%”.

Other details

  • You can invest via their IRA
  • You do not have to be an accredited investor as per their FAQ section
  • There is a 1.5% fee for management and administration
  • The Fund will close by March 2024. 
  • It requires a minimum investment of $5,000

Why is This Unique?

General retail investors typically do not have access to alternative investment asset classes, as these are typically reserved for institutional investors. Yieldstreet exists to democratize investing by giving more people access to opportunities they wouldn’t have in the past due to regulatory or technological issues.

It is diversified by nature as it is a fund that invests in a wide array of assets. This is a different approach from the typical Yieldstreet offering. Instead of buying one asset, you can buy shares within a Closed-End-Fund managed by Yieldstreet investing across several alternative asset classes.

The Fund is open to non-accredited investors. That’s a big deal as many of these investments typically require accredited investor status, which many people do not fall under due to stringent net worth requirements.

Another departure from regular Yieldstreet offerings is that you may have the option to take money out of the fund quarterly. Most, if not all, other asset offerings do not allow liquidity during the Fund’s existence.

Access for All

Bitcoin and the decentralization movement are about three things; individual control over money, sound money, and access to a wide variety of opportunities through platforms such as Ethereum and different projects that. That is another reason why this Yieldstreet offering is more compelling. It has similar themes to the decentralized sector. More platforms are presenting solutions that continue to move forward with the idea of alternative assets. More of these platforms are likely to arise over the next decade due to the search for yield, diversification, and more opportunities.

Find more information about the Prism Fund Yieldstreet team at [email protected]. Review the Prospectus here.

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