NEW YORK–(BUSINESS WIRE)–Dec 9, 2021–
Yieldstreet, a top multi-asset alternative investment platform focused on reducing friction and providing previously unattainable access to alternatives for millions of people, today announced a new private equity strategy that offers retail investors the opportunity to gain exposure to direct equity investments in alternative asset managers.
An alternative asset manager, such as a private equity firm, is itself a business, and may have the potential to be a very profitable one due to the recurring annual revenues it earns through management and incentive fees. Investing in the asset managers/general partners themselves, also known as GP Stakes investing, may allow investors to benefit from strong cash flows as well as the potential for growth from increased investor in-flows.
Among the many GP Stakes strategies, investments in mid-size managers is becoming increasingly attractive as mid-size managers represent a larger opportunity set with more than 10x the number of targets relative to the larger manager segment. According to Oxford Financial Group, investment in such firms is expected and projected to generate investors an 8% – 15% annual cash yield and an overall gross 2.5 – 3.0x multiple of invested capital (MOIC), which is expected to be higher than returns earned via an investment in a large-size manager.
“Over the past few years, the amount of capital raised for GP Stakes investing was the highest on record, exceeding $23 billion,” said Michael Weisz, Founder and President of Yieldstreet. “Equity ownership in alternative asset management companies has created tremendous wealth opportunities as demand for alternative assets continues to grow.”
Investing in private equity and private credit managers has been rapidly expanding as many well-known investors, including Blackstone, Bonaccord Capital Partners and Goldman Sachs, are continuing to raise funds and asset managers seek operational capital to support their growth.
“We’re excited that Yieldstreet is continuing to diversify their offerings and expand beyond just growth equity to include other strategies that have historically provided significant wealth creation,” said Ajay Chitkara, Managing Partner at Bonaccord Capital Partners, a subsidiary of P10 Holdings, a leading provider of private market and impact investing strategies, with over $14B in assets under management. Investment professionals at Bonaccord have structured and made direct investments in $400 million in early stage equity investments into alternative asset management companies.
Yieldstreet is reimagining the way wealth is created by providing access to alternative investments previously reserved only for institutions and the ultra-wealthy. Yieldstreet’s mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Commercial, Consumer, Art, Marine, Legal Finance and Aviation. Since its founding in 2015, Yieldstreet has funded over $2.2 billion of investments and is committed to making financial products more inclusive by creating a modern investment portfolio. The company, headquartered in New York City with offices in Brazil, Greece, and Malta, is backed by leading venture capital firms. Join the movement at www.yieldstreet.com.
About Bonaccord Capital Partners
Bonaccord is a subsidiary of P10 Holdings, a leading, specialized multi-asset class private markets solutions provider, offering a comprehensive suite of private equity, venture capital, private credit, and impact investing strategies. P10 has acquired 5 asset management firms – Bonaccord Capital Partners, RCP Advisors, TrueBridge Capital Partners, Five Points Capital, and Enhanced Capital, which have a combined total of over $14B in assets under management and over 75 investment professionals.
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PUB: 12/09/2021 11:38 AM/DISC: 12/09/2021 11:38 AM
Copyright Business Wire 2021.