We have previously spoken to Yieldstreet – headquartered in New York – about the changing way that affluent and HNW investors gain access to private markets, aka alternative investments.

Yieldstreet, a US-based private markets investment platform founded a decade ago, yesterday announced that it had raised $77 million in new capital from new and existing investors.

The investment was led by Tarsadia Investments, with participation from Mayfair Equity Partners, Edison Partners, Cordoba Advisory Partners (CAP), and Kingfisher Investment Advisors, alongside new investor RedBird Capital Partners, Yieldstreet said in a statement. 

The firm, which has headquarters in New York, said the new capital will support its platform capabilities. It recently launched Yieldstreet 360, its first automated investing solution. Yieldstreet has in the past talked about how its business model speaks to the “democratization” of alternative investment.

"The next five years will define how individual investors access private markets investments," Mitchell Caplan, CEO of Yieldstreet, said. "The convergence of regulatory evolution, technological advancement, and investor demand has created the conditions for a new era in private markets. This funding will position us to capitalize on that opportunity."

The new investment brings industry expertise to Yieldstreet's board, with Mike Zabik from RedBird Capital Partners and Yariv Robinson from Kingfisher Investment Advisors joining as new board members.

Early in May, Caplan was named interim CEO, succeeding Michael Weisz, who is remaining as a member of the firm’s board. Caplan is continuing as chairman. Meanwhile, the board is carrying out a search for the next CEO.

Access
A busy trend in the past decade has been a variety of platforms – often using modern technology tools – opening access to high net worth and mass-affluent clients to areas that were once the sole preserve of ultra-wealthy individuals, banks, pension funds, sovereign wealth funds, and endowments. In June, lawmakers in Congress directed the Securities and Exchange Commission's to adjust its Accredited Investor Rule, paving the way for more investor access.

Players in the “democratization” space include InvestX, CAIS, iCapital, ADDX, and Moonfare.