Alternative investment platform Yieldstreet announced today that it has agreed to acquire Cadre, an online real-estate-focused investment platform aimed at institutional and high net worth investors.
Financial terms of the deal were not disclosed.
Founded in 2015, Yieldstreet gives people a way to invest in areas like real estate, marine/shipping, legal finance, commercial loans and other opportunities that were previously only open to institutional investors. Milind Mehere and Michael Weisz co-founded Yieldstreet with the mission of making investing more inclusive for non-institutional investors.
Cadre, founded by Ryan Williams and Joshua and Jared Kushner in 2014, is an online marketplace that helps connect accredited investors to real estate operators. It claimed to give investors a way to delve into commercial real estate deals in “a far more transparent way.” The company was once valued at $800 million but its value has reportedly dropped sharply in recent years. The Information reported earlier this year that an acquisition by Yieldstreet could value the company at around just $100 million. It has raised more than $133 million in debt and venture funding from investors such as Andreessen Horowitz, General Catalyst, Khosla Ventures, Goldman Sachs and Thrive Capital, among others.
The two companies have a collective investment value -- defined as the combined capitalized transaction value in real estate equity plus committed amounts across all other investments since inception in 2014 and 2015 -- of more than $9.7 billion. Investors have allocated a combined $5.3 billion on the platforms and received $3.1 billion in returns to date, according to a statement by Yieldstreet.
Together, Yieldstreet and Cadre serve more than 500,000 members across eight institutional and retail distribution channels -- 450,000 of which come from Yieldstreet and 50,000 from Cadre.
Both companies are based in New York.
Williams will remain CEO of Cadre and spearhead a new division focused on broadening access to the institutional audience as Yieldstreet's global head of Institutional Partnerships & Clients. 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 confirmed that all Cadre employees would be staying on but did not specify how many.
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