Where is the unrealized gain/loss amount coming from?
Private markets investments function differently than public markets investments such as stocks, in that there is no daily liquidity or market pricing for the investments. Instead of relying on pricing from a liquid market to dictate unrealized gains or losses, private market investment valuations are assessed on a periodic basis. Investing in private securities transactions bears risk, in part due to the following factors: there is no secondary market for the securities; there is credit risk.
Unrealized gain or loss will reflect the most recently available valuation. New investments will be held at the recent transaction price (cost) or the initial purchase price for at least one quarter. Given the nature of illiquid, private market investments, values may not change materially for several quarters. Should there be a material event within this time frame warranting an update to the valuation, this will be reflected and communicated accordingly.
As our system's transition progresses, Yieldstreet will seek to increase the frequency of valuations with the ultimate goal of reporting quarterly valuations for all investments. The Capital Account Statement will reference the latest valuation available.
Investment valuations at Yieldstreet are conducted internally and audited by a 3rd party on an annual basis. Investment valuations are conducted . Investment valuations are conducted in accordance with ASC 820, which is a section of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) that provides guidance on fair value measurements, which provides a framework for measuring the fair value of an investment. The Independent Auditor reports are published annually and can be viewed in the Documents section of your portfolio.
What is the latest valuation date of the asset being used in this statement?
In most cases, 2023 year end valuations will be used until 2024 audited financial valuations are available. If you have questions about a specific investment, please reach out to us at investments@yieldstreet.com.
Where can I find more information on the valuation of the asset?
Investment valuations will be updated and published at the end of each year following the completion of the audit process evaluated by Deloitte, once audited financials become available.
Currently, valuations in capital account statements will reflect audited valuation marks as of December 31, 2023, as applicable, which can be downloaded in the Documents section of each investment. Valuation marks will be updated on a rolling basis to reflect December 31, 2024 as audited financial statements are issued by the 3rd party process and the annual audit process is completed for each underlying investment. Generally, audited financial statements will be finalized and published in Q2 or Q3 for the prior year.
What is the Syndication Financing Expense?
Syndication Financing Expense is interest owed on the line of credit utilized to initially purchase the Fund’s asset(s). The interest expense shown represents your share of the borrowing costs incurred by the Fund while using the line of credit.
To increase the certainty that investment opportunities presented to prospective investors are able to be closed, Yieldstreet generally pre-funds each investment before all investor capital is allocated to the investment opportunity.
Pre-funding also allows the Fund to capitalize and execute on investment opportunities quickly and may also allow the Fund to secure favorable terms or a larger opportunity set of prospective investments.
Are these fees and expenses accounted for in the advertised expected return to investors?
Yes, target net annualized returns and yields are net of fees and expenses. All anticipated fees and expenses are modeled and accounted for (including Syndication Financing Expense) prior to launching a new investment on the platform. In the event fees and expenses are different than modeled, due to performance or any unforeseen circumstances, returns can vary.
Where can I find more information on expected fees and expenses on each investment?
On each investment’s offering page, expected fees and expenses are listed in the Returns & Management fees and Structure section. Additionally, more detailed information can be found in each investment’s Private Placement Memorandum (or comparable document) which can be downloaded from the Documents section of your portfolio. The intention of the Capital Account Statement is to provide investors with a more granular and detailed current balance of each investment, including visibility into fees and expenses.
Are fees and expenses expected regardless of performance?
All anticipated fees and expenses are modeled for each investment and accounted for in the net advertised target return when launching a new investment to the Yieldstreet platform. In the event of any unexpected circumstances related to performance, modeled returns may differ. Any and all fees and expenses are paid at the top of the waterfall until satisfied.
Why is this happening with some investments and not others?
Throughout 2025, we are integrating a third-party fund and investor accounting software to provide investors with a more detailed current balance for each investment. This software will be integrated on a deal-by-deal basis, beginning with equity and fund investments and eventually, debt investments.
A Capital Account Statement will be provided in the Documents section for each investment integrated with the software, which will provide a more detailed breakdown of all activity.
Investments for which we have not yet completed implementation will continue to use the previous balance methodology, and Capital Account Statements will not yet be available.
A tooltip next to each investment balance in your portfolio explains how the value has been calculated.
Related article: Understanding your Capital Account Statements