Yieldstreet seeks $75-$100 million in new funding as the investment platform weighs sale
Investment firm Yieldstreet, which made its name offering alternative assets like art and fine wine, is raising another round of capital, according to four banking and private equity sources.
Yieldstreet has hired advisors and is targeting $75 million to $100 million for the round, the people said. The fintech is also considering a sale or a combination capital raise plus sale, two of the people said. Timing is unclear. Some say the round could be finished soon, while others pegged it for next year.
Yieldstreet has raised around $800 million in total funding, according to Crunchbase, from investors that include Khosla Ventures, Thrive Capital and Greycroft. The company has not disclosed how much it is worth in recent years, but reports pegged its valuation at $800 million after Yieldstreet raised a $100 million round in 2021.
Executives for Yieldstreet, Thrive and Greycroft declined comment. Khosla did not return messages for comment.
In 2015, Michael Weisz and Milind Mehere co-founded Yieldstreet, a private market investing platform that lets investors access alternatives like real estate, art, private credit or venture capital. Yieldstreet has about 500,000 members. Last year, Yieldstreet acquired Cadre, a real estate investing platform, Fortune reported.
Mehere led the company as chief executive until 2023 while Weisz was president. That year, Yieldstreet named Weisz its CEO, while Mehere stepped back and is currently a senior advisor, according to his LinkedIn profile.
Yieldstreet has long said its goal was to even the playing field for retail investors, though some think its offerings are best suited for professional investors seeking diversification and wealth-building opportunities.
A second fintech goes up for sale
Separately, Fortis Payment Systems, which is backed by Lovell Minnick Partners, is also on the block, according to five private equity and banking sources.
Lovell Minnick is selling a minority stake in Fortis, according to four of the sources, while others said the PE firm is seeking a “sponsor investor.”
Lovell Minnick has hired an investment bank to advise on the process. Fortis generated $65 million in EBITDA and a deal could value the company at $800 million to $1 billion, they said.
Launched in 2010, Fortis provides embedded payments for software providers. The company in late 2022 said it surpassed more than $20 billion in commercial transaction volume.
In 2019, Lovell Minnick invested in Fortis, which has since been acquisitive. Fortis has scooped up BLUEDOG, EpicPay, Change Merchant Solutions, OmniFund, VIP Integrated Payments, Payment Logistics, SmartPay and MerchantE’s Netsuite payment division.
Lovell Minnick declined to comment. Fortis could not immediately be reached for comment.
