Yieldstreet tell investors in $89 million worth of marine loans to expect losses

## Yieldstreet’s Marine Loan Disaster: Investors Left High and Dry

Yieldstreet, a platform for private market assets, is in the news again, and unfortunately, it’s not good news for its investors. A recent settlement in a failed marine loan venture highlights the risks involved in these types of investments. Here’s a breakdown of what happened:

• Settlement, but No Repayment for Investors: Yieldstreet secured a $5 million settlement related to defaulted marine loans, but investors are unlikely to see any return. The company’s recovery costs exceed the settlement amount.
• Failed Marine Loan Deals: Yieldstreet invested $89 million in loans backed by 13 ships, intended for companies dismantling ships for scrap.
• Lost Track of Assets: Yieldstreet lost track of the ships and pursued the borrower, alleging fraud. Despite winning monetary awards, the borrower avoided payment.
• Impact on Investors: Investors like Arman, who invested $180,000, are facing significant losses. He estimates he lost over 90% of his investment.
• Company’s Response: Yieldstreet stated they are committed to exhausting every avenue for investor recovery and have absorbed significant losses alongside investors.
• New Business Model: Yieldstreet has shifted its business model to distributing private market funds from established firms like Goldman Sachs and the Carlyle Group.
• Historical Context: The marine loan debacle contributed to the collapse of a partnership with BlackRock in 2020. This follows other recent losses in real estate deals.

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