Why YieldStreet Is Buying WealthFlex

By Annie Baker ● December 17, 2019
  • Digital wealth management platform company YieldStreet recently announced the acquisition of WealthFlex. These are the details.

Digital wealth management platform YieldStreet recently announced the acquisition of WealthFlex  — which is a first-of-its-kind digital IRA platform providing investors with easy and cost-effective access to private investment opportunities through self-directed IRAs. And the acquisition expands YieldStreet’s product portfolio to include a tech-forward IRA offering while providing investors with greater access to alternative investment opportunities.

YieldStreet is aiming to become the world’s largest digital wealth management platform for helping investors realize their next level. And YieldStreet is transforming the investing landscape, opening up access to institutional quality investments for individual investors across a range of asset classes such as Real Estate, Marine Finance, Art Finance, Legal Finance, and Commercial Loans. Based out of NYC, YieldStreet is backed with $178 million in equity and debt funding from venture firms like Edison Partners, Greycroft, and Raine Ventures.

Due to the acquisition, accredited investors with WealthFlex accounts as well as current and future YieldStreet investors will be able to diversify their retirement portfolios with YieldStreet’s offerings across a range of alternative asset classes such as real estate, marine finance, legal finance, art finance, and commercial loans.

“Our investors wanted a tax-efficient method of investing on YieldStreet, and we listened,” said YieldStreet founder and CEO Milind Mehere. “Anyone who has ever tried to move their 401(k) or IRA understands that the process is not consumer-friendly or designed for today’s world. Our promise is to make it as fast and cost-efficient as possible so investors can easily move their money and take control of their retirement portfolios.”

Currently, the $27.1 trillion retirement market is held mostly in sub-optimized portfolios with limited access to potentially higher-yielding alternative investment products. And the retirement sector is comprised of a large and growing population with an increasing appetite for alternative investments beyond those typically offered through an IRA. Through the acquisition of WealthFlex, YieldStreet is going to knock down high barriers to entry to wealth-generating investment opportunities for individual investors.

“The $27.1 trillion retirement market is currently underutilized and lacking diversification. YieldStreet acquired WealthFlex to give investors greater flexibility to invest their retirement portfolios beyond traditional products as we continue to disrupt the ways in which wealth is created for our growing community of investors,” added YieldStreet founder and president Michael Weisz. “In the future, we plan to explore originating investments specifically designed to be most efficient for IRA investors.”

Launched in 2014, WealthFlex is an ultra-intuitive digital platform that makes it easy  and cost-effective to convert traditional IRA investments into self-directed private investments thus providing customers with checkbook access to their investable cash with no need for plan administrator involvement or mailing and faxing documents. And as part of the YieldStreet platform, YieldStreet will continue being investor first by expanding its incapabilities to help investors grow their retirement income and savings, including the launch of defined benefit plans, solo 401(k) plans, in-kind asset Roth conversions, and distributions, and other products that serve the best interest of the modern investor.

“Combining the capabilities of our seamless retirement account administration with the vision Michael and Milind have for enabling wealth creation with institutional-quality investment products is a match made in heaven,” explained WealthFlex founder and CEO Joe DiDomenico — who is joining YieldStreet as Director of Retirement Services. “The playing field for individuals to be able to invest for themselves has radically improved as a result of this acquisition.”