Together, Yieldstreet and Cadre serve more than 500,000 members across eight institutional and retail distribution channels. 

Yieldstreet, the US private market investment platform interviewed by this news service in April, yesterday unveiled a definitive agreement to acquire Cadre, an online, real-estate-focused investment platform.

Cadre serves institutional and high net worth investors, Yieldstreet said in a statement yesterday.

The financial terms of the transaction, which is subject to regulatory review, were not disclosed.

When the platforms are blended, they will have a combined investment of more than $9.7 billion. Together, Yieldstreet and Cadre serve more than 500,000 members across eight institutional and retail distribution channels. 

“We will continue to pursue strategic opportunities to increase revenue, enhance profitability, drive operating synergies, and unlock new channels for distribution or exceptional technology,” chief executive of Yieldstreet, Michael Weisz, said. “Expanding complementary distribution channels and markets beyond the US, investment portfolios and capabilities with Cadre is just the beginning.”

The M&A deal is an example of the kind of consolidation and growth taking place in areas such as alternative investments – a sector that boomed in the post-2008 crisis year when interest rates fell, banks’ lending shrank and investors hunted for yield. Since interest rates have risen after the pandemic, however, market conditions for these assets has on balance become more challenging, industry figures tell Family Wealth Report. 

Joiners
Among the Cadre team members joining Yieldstreet is the group’s investment team, led by Dan Rosenbloom. 

Cadre founder and CEO Ryan Williams is retaining the chief executive’s post at Cadre; he will also lead a new division focused on broadening access to the institutional audience as Yieldstreet’s global head of institutional partnerships and clients. 

Industry veteran Mike Fascitelli, an investor in and advisor to Cadre, will now serve as the global chairman of real estate and head of Cadre’s investment committee.

Yieldstreet’s differentiating quality is that it fractionalizes the business of direct investing in private markets, so that investors can participate with small amounts and without having to go via a fund. For example, on Yieldstreet, a person can get into a private equity fund for at least $20,000 rather than a more typical $2 million required from a private equity investor. Yieldstreet works by aggregating individual stakes into a single package, and then making a stake into an opportunity.