Yieldstreet Review: Alternative Investments for Accredited Investors

The S&P 500 delivered strong double-digit returns again, and you’re researching alternative investments instead of just buying more index funds. That tells me something: you’ve noticed that over 35% of the index is concentrated in just 10 stocks, and you’re wondering if there’s a smarter way to diversify. Yieldstreet promises access to private markets—real estate, private credit, art, legal finance—that institutions have used for decades. The platform has returned $3.3 billion to investors and claims 100% of its Short Term Notes have matured on target. But those numbers hide something critical: this isn’t investing you can undo. Most offerings lock your money for 5-7 years, and the platform explicitly warns you could lose everything.

This review is about whether you can actually capture institutional-style diversification—or whether you’re just trading liquid concentration for illiquid complexity.

Quick Verdict: Is Yieldstreet Worth It?

Yieldstreet is worth it for accredited investors who can genuinely lock up capital for 5-7 years. The platform provides real access to alternative assets—private credit, real estate, legal finance—that historically required $1M+ minimums and institutional connections. At $10K minimums with no platform fee, the barrier to entry is lower than traditional alternatives.

The catch: extreme illiquidity. You cannot sell these investments when the market drops or when you need cash. The Alternative Income Fund offers quarterly redemption windows, but even those are limited and not guaranteed. If you’re the type who checks your portfolio daily and sells when things look bad, Yieldstreet will frustrate you—or worse, trap you.

Best for: Accredited investors with 5-7+ year time horizons, $100K+ portfolios, and genuine comfort with illiquidity.

Skip it if: You might need the money within 5 years, you’re not accredited, or you can’t afford to lose your entire investment.

The Track Record: What the Numbers Actually Show

Let’s be clear about what Yieldstreet has delivered—and what they haven’t.

Short Term Notes Program:

• $1.5+ billion total invested
• $1.3+ billion matured principal
• 100% of matured Short Term Notes performed on target (2019 through September 2025)
• Terms: 3, 6, or 9 months

That 100% track record is notable, but context matters. Short Term Notes are the platform’s lowest-risk offering—essentially cash alternatives with short durations. They’re not representative of the higher-yield, longer-duration investments that carry more risk.

Alternative Income Fund (as of June 2025):

• Annualized distribution rate: 6.5%
• Annualized total return (1 year): 7.6%
• All targeted quarterly payments made since March 2020 inception

A 7.6% return with quarterly distributions is solid—but remember, the fund’s expense ratio is 2.8%, which is high compared to public market alternatives. And distributions may include return of capital, not just earnings.

Platform-Wide Statistics:

• 650+ total offerings to date
• $6+ billion total invested on platform
• $3.3+ billion returned to investors
• 500,000+ members

What’s missing: The platform doesn’t prominently display loss rates on individual deals or the performance of longer-duration investments that have faced challenges. Past performance, as they repeatedly state, doesn’t guarantee future results.

Explore Yieldstreet — $10K Minimum

What You Get: Inside the Yieldstreet Platform

Yieldstreet (now rebranded as Willow Wealth, though the Yieldstreet name persists for key products) offers three main ways to invest in private markets:

1. Short Term Notes

The entry point for most investors. 65% of 2024 investors started here.

• Duration: 3, 6, or 9 months
• Minimum: $10,000
• Risk level: Lowest on the platform
• Best for: Parking cash you don’t need immediately while earning more than a savings account

2. Direct Investments

Self-directed selection from rotating opportunities across:

• Real Estate: Residential, commercial, development projects
• Private Credit: Business loans, consumer credit, transportation finance
• Private Equity: Direct equity in private companies
• Art: Fine art investment opportunities
• Legal Finance: Litigation funding and legal settlements
• Marine Finance: Shipping and maritime investments

Each deal has its own terms, fees, and risk profile. You’re building a custom portfolio, not buying a diversified fund.

3. Alternative Income Fund

The most accessible option for diversification:

• Exposure: 50+ income-focused investments
• Distributions: Quarterly
• Liquidity: Quarterly redemption windows (limited)
• Accreditation: Open to ALL investors (not just accredited)
• Minimum: $10,000

4. Willow 360 Managed Portfolios

For hands-off investors:

• Professionally managed allocation across three diversified funds
• Partners: Carlyle, Goldman Sachs, StepStone
• Strategies: Income, Balanced, or Growth
• Annual rebalancing included
• Currently only available for taxable accounts (not IRAs)

What you’re really getting: Access to asset classes that historically required $250K-$1M+ minimums and personal relationships with fund managers. The platform handles the sourcing, vetting, and administration. You handle the capital and the patience.

Start with Yieldstreet — No Platform Fee

How Yieldstreet Works: The Investment Process

The platform operates differently than buying stocks or ETFs. Here’s the actual experience:

Step 1: Create Account (Free) Sign up and verify your identity. Most offerings require accredited investor verification.

Step 2: Browse Offerings New opportunities rotate regularly. Most details are only visible when logged in. You’ll see:

• Target returns
• Term length
• Minimum investment
• Asset class and underlying collateral
• Risk disclosures

Step 3: Review and Invest Each offering has detailed documentation. Read the fine print—these are private placements, not public securities. Fund via ACH, wire, or account transfer.

Step 4: Wait This is the hard part. Your money is locked. You’ll receive:

• Regular updates and commentaries
• Quarterly statements
• Distribution payments (if applicable)
• 1099 tax forms

Step 5: Exit At maturity, you receive your principal plus returns (if the investment performed). For the Alternative Income Fund, you can request redemption during quarterly windows—but redemptions are limited and not guaranteed.

The Philosophy Behind It

According to Yieldstreet: “We review billions in investments annually and only invest in opportunities that meet our standards for quality and alignment.”

The platform emphasizes:

• Multi-asset diversification: Spread across real estate, credit, equity, and specialty assets
• Institutional partnerships: Access to managers like Carlyle, Goldman Sachs, StepStone
• Curated opportunities: Not every deal makes it to the platform

The implicit promise: You’re investing alongside institutions, not against them.

Pricing and Value: The Complete Cost Picture

Yieldstreet’s pricing is unusual—there’s no platform subscription fee, but costs are embedded in each investment.

What You Pay

The Value Math

Let’s run the numbers on a $50,000 investment in the Alternative Income Fund:

• Annual expense: ~$1,400 (2.8% of $50K)
• Expected return: ~$3,800 (7.6% of $50K)
• Net return: ~$2,400 (4.8% after fees)

Compare that to:

• Public REIT ETF (VNQ): ~0.12% expense ratio, but fully liquid and correlated with stocks
• High-yield bond ETF (HYG): ~0.48% expense ratio, liquid, but different risk profile
• Private equity fund: Often 2% management + 20% carry, but requires $250K+ minimum

The 2.8% expense ratio is high, but you’re paying for access to asset classes you couldn’t otherwise reach. The question is whether that access is worth the cost AND the illiquidity.

Breakeven Calculation

At $10,000 minimum, you need the investment to return at least 3-4% annually just to cover fees and match what you’d get from a high-yield savings account. The platform’s track record suggests most investments exceed this threshold—but not all, and past performance doesn’t guarantee future results.

Try Yieldstreet — $10K Minimum

The Trade-Offs: What You’re Actually Signing Up For

The Upside

• Genuine diversification: Access to asset classes with low correlation to public markets
• Institutional-quality access: Partnerships with Carlyle, Goldman Sachs, StepStone
• Lower minimums than traditional alternatives: $10K vs. $250K+ for most private funds
• Track record: 100% of Short Term Notes matured on target; 7.6% Alternative Income Fund returns
• No platform fee: You only pay when you invest
• Open option for non-accredited investors: Alternative Income Fund available to all

The Downside

• Extreme illiquidity: 5-7 year lockups are standard; you cannot sell when you want
• Total loss risk: The platform explicitly states you could lose everything
• High fees on some products: 2.8% expense ratio on Alternative Income Fund
• Accreditation required for most offerings: Net worth $1M+ or income $200K+ ($300K joint)
• Complexity: Private placements are harder to understand than stocks or ETFs
• Limited redemptions: Even the Alternative Income Fund limits quarterly redemptions
• Geographic restrictions: Alternative Income Fund not available in Nebraska or North Dakota

Warning: These investments are NOT bank deposits and are NOT FDIC insured. You are investing in private placements that are speculative and involve a high degree of risk.

Who Should Use Yieldstreet (And Who Shouldn’t)

Yieldstreet Is For You If:

• You’re an accredited investor with net worth $1M+ (excluding primary residence) or income $200K+ ($300K joint)
• You have a 5-7+ year time horizon and won’t need this money for emergencies
• You can afford to lose the entire investment without it affecting your lifestyle
• You want genuine diversification beyond stocks and bonds
• You’re comfortable with complexity and willing to read offering documents
• You have $100K+ in investable assets and can allocate 5-15% to alternatives

Skip Yieldstreet If:

• You might need the money within 5 years. There’s no secondary market for most investments. If you need cash, you’re stuck.

• You’re not accredited. The Alternative Income Fund is your only option, and even that has limitations.

• You check your portfolio daily and react emotionally. You can’t sell these investments when the market drops. If that will stress you out, this isn’t for you.

• You don’t understand what you’re buying. Private credit, legal finance, and art investments are complex. If you can’t explain the risk to someone else, don’t invest.

• You’re looking for get-rich-quick. Target returns of 6-10% are solid but not spectacular. The value is diversification, not outsized returns.

If Yieldstreet isn’t right for you: Consider Morningstar Investor for research tools to build your own diversified stock portfolio, or stick with low-cost index funds and public REITs for liquid diversification.

Best Alternatives to Yieldstreet

If Yieldstreet doesn’t fit your situation, here are other paths to diversification:

For Liquid Alternative Exposure

Public REITs (VNQ, SCHH)

• Expense ratio: 0.12-0.25%
• Minimum: Price of one share (~$100)
• Liquidity: Fully liquid, trade like stocks
• Trade-off: Highly correlated with stock market; less “alternative” than private real estate

High-Yield Bond ETFs (HYG, JNK)

• Expense ratio: 0.48-0.50%
• Minimum: Price of one share (~$80)
• Liquidity: Fully liquid
• Trade-off: Credit risk; correlated with risk-on/risk-off sentiment

For Accredited Investors Seeking Alternatives

Fundrise

• Minimum: $10 for basic; $1,000+ for advanced
• Focus: Real estate crowdfunding
• Liquidity: Limited quarterly redemptions
• Trade-off: Lower minimums but narrower focus (real estate only)

See our Fundrise review for the full analysis.

Explore Fundrise

AngelList/Republic

• Minimum: Varies by deal
• Focus: Startup investing
• Liquidity: Highly illiquid; 7-10 year horizons
• Trade-off: Higher risk/reward; most startups fail

For Research-Focused Investors

Morningstar Investor

• Annual cost: $249/year
• What you get: Research tools, fair value estimates, portfolio analysis
• Best for: Building your own diversified stock portfolio with professional-grade research

Read our Morningstar Investor review for details.

Final Verdict: Should You Use Yieldstreet?

Yieldstreet is a legitimate platform that delivers what it promises: access to private market investments that were previously reserved for institutions and ultra-high-net-worth investors. The track record—100% of Short Term Notes maturing on target, 7.6% returns on the Alternative Income Fund, $3.3B+ returned to investors—suggests the platform can execute.

But the illiquidity is real. This isn’t a stock you can sell on a bad day. This isn’t a fund you can redeem when you need cash. When you invest in Yieldstreet, you’re committing capital for years, not months.

The question isn’t whether Yieldstreet is legitimate. It is. The question is whether YOU can handle the commitment.

If you’re an accredited investor with a long time horizon, genuine risk tolerance, and a portfolio that can afford to lock up 5-15% in illiquid alternatives, Yieldstreet offers something valuable: diversification beyond the stocks and bonds that dominate most portfolios.

If you’re not sure, start with Short Term Notes. At 3-9 month durations, you can test the platform without committing for years. If that works, you’ll know whether you’re ready for longer-duration investments.

Five years from now: Investors who used Yieldstreet wisely will have portfolios less correlated with public markets—and potentially smoother returns during the next stock market correction. Investors who invested money they couldn’t afford to lock up will have learned an expensive lesson about liquidity.

The lockup is the point. It’s what enables the returns. The question is whether you can live with it.

For a broader look at alternative and research platforms, explore our guide to the best stock research websites.

Start with Yieldstreet — Short Term Notes from $10K

Frequently Asked Questions

Is Yieldstreet worth the money?

Yes, for accredited investors with 5-7+ year time horizons. The platform provides genuine access to alternative assets—private credit, real estate, legal finance—at $10K minimums vs. the $250K+ typically required for private funds. The Alternative Income Fund has returned 7.6% annually with quarterly distributions. The catch is extreme illiquidity: you cannot sell most investments until maturity, which may be 5-7 years away. If you can afford to lock up capital and want diversification beyond stocks and bonds, Yieldstreet delivers. If you might need the money or can’t afford total loss, skip it.

What are the best alternatives to Yieldstreet?

For liquid alternative exposure, consider public REITs (VNQ, SCHH) or high-yield bond ETFs (HYG)—they’re fully liquid with expense ratios under 0.5%. For real estate crowdfunding with lower minimums, Fundrise starts at $10 and offers quarterly liquidity windows. For accredited investors wanting startup exposure, AngelList and Republic offer venture-style investments. If you want to build your own diversified portfolio with research tools instead of pre-packaged alternatives, Morningstar Investor provides professional-grade analysis at $249/year.

Yieldstreet vs. Fundrise: Which is better?

Yieldstreet offers broader asset class exposure (private credit, art, legal finance, real estate) while Fundrise focuses exclusively on real estate. Yieldstreet requires $10K minimums and accredited status for most offerings; Fundrise starts at $10 and is open to all investors. Both have limited liquidity, but Fundrise’s quarterly redemption windows are generally more accessible. Choose Yieldstreet if you want multi-asset alternative exposure and meet accreditation requirements. Choose Fundrise if you want real estate specifically with lower minimums and less restrictive access.

How do I cancel or withdraw from Yieldstreet?

You cannot cancel or withdraw from most Yieldstreet investments after funding—they’re illiquid private placements with no secondary market. The Alternative Income Fund offers quarterly redemption windows, but redemptions are limited and not guaranteed. Short Term Notes mature in 3-9 months, at which point you receive your principal plus returns. For longer-duration investments (5-7 years), you must wait until maturity or until the investment exits. This is the fundamental trade-off of alternative investing: you sacrifice liquidity for access to asset classes with potentially higher returns.

Do I need to be an accredited investor to use Yieldstreet?

For most offerings, yes. Accredited investor status requires net worth of $1M+ (excluding primary residence) OR annual income of $200K+ ($300K+ joint) for the past two years. However, the Yieldstreet Alternative Income Fund is open to ALL investors regardless of accreditation status, with a $10K minimum. This makes it the most accessible entry point for non-accredited investors who want alternative exposure. Short Term Notes and most direct investments require accreditation.

What happens if Yieldstreet goes out of business?

Your investments are held in separate legal entities (SPVs) from Yieldstreet’s operating company. If Yieldstreet (Willow Wealth) fails, your investments would continue under their existing terms—though administration and communication would be disrupted. The platform uses Pershing LLC for custodial and clearing services, and Willow Wealth Markets LLC is a FINRA/SIPC member. However, SIPC protection covers brokerage failures, not investment losses. If an underlying investment fails, you could lose your entire investment regardless of Yieldstreet’s status.

How does Yieldstreet make money if there’s no platform fee?

Yieldstreet generates revenue through embedded fees in each investment rather than charging a separate platform subscription. The Alternative Income Fund carries a 2.8% annual expense ratio, which includes a 1.0% management fee. Direct investments typically include origination fees of 1-2% and may have performance fees or carried interest on profits. Short Term Notes quote returns net of fees, meaning Yieldstreet’s cut is already deducted from the yield you see. This model aligns Yieldstreet’s incentives with investors—they only earn when you invest—but the all-in costs can be higher than public market alternatives like ETFs with 0.1-0.5% expense ratios.

What is the minimum portfolio size to use Yieldstreet effectively?

A minimum of $100,000 in total investable assets is recommended before allocating to Yieldstreet. Financial advisors typically suggest limiting alternative investments to 5-15% of your portfolio, which means a $100K portfolio could reasonably allocate $10K-$15K (one to two positions). With Yieldstreet’s $10,000 minimum per investment, smaller portfolios would be over-concentrated in a single illiquid position. Ideal Yieldstreet users have $250K+ portfolios, allowing them to diversify across 3-5 offerings while keeping alternatives at an appropriate allocation percentage. Remember that these investments are illiquid and carry total loss risk—never invest money you can’t afford to lose entirely.

Are Yieldstreet returns taxed differently than stocks?

Yes, Yieldstreet investments often have different tax treatment than stocks. The platform issues 1099 forms annually, but the income character varies by investment type. Private credit investments typically generate ordinary income taxed at your marginal rate (up to 37%), not the lower 15-20% qualified dividend or long-term capital gains rates. Real estate investments may pass through depreciation deductions that offset income initially but create recapture taxes later. Some investments may generate UBTI (Unrelated Business Taxable Income), which can create tax liability even in IRAs. Yieldstreet offers IRA investing for some products, but the Alternative Income Fund is currently only available in taxable accounts. Consult a tax professional before investing, as K-1 forms for certain investments can also delay your tax filing.