BlackRock to co-manage high-yielding alternative income fund

BlackRock to co-manage high-yielding alternative income fund
YieldStreet Prism Fund gives individual investors direct access to BlackRock's institutional expertise
FEB 18, 2020

BlackRock is teaming up with the digital asset management platform YieldStreet to launch an income-generating fund for wealthy investors.

The YieldStreet Prism Fund, which is structured as a closed-end fund that liquidates after four years, is hoping to attract accredited investors with the promise of a 7% annual yield.

The fund, which officially launches Saturday, has a $20,000 investment minimum and is available only to investors with individual incomes of at least $200,000 over each of the past two years.

The fund’s restricted investor access is due to the portfolio blend of liquid and illiquid alternative investments that will be used to create a higher-yielding fixed-income product, according to representatives from YieldStreet.

“We’re focused on income generation for consumers, and the biggest problem we’re trying to solve is access to alternatives,” said Milind Mehere, co-founder and chief executive of YieldStreet.

Mr. Mehere said that in jointly managing the portfolio, YieldStreet will be responsible for managing the illiquid investments, and BlackRock will manage the liquid alternative portion.

This will also represent the first time individual investors have had direct access to BlackRock's institutional asset management expertise.

The fund, which will charge a 1% management fee, will open for limited redemptions after 13 months but is designed for the investor money to be locked up in the fund, Mr. Mehere said.

“We are excited to partner with YieldStreet on the launch of the YieldStreet Prism Fund, said Robert Stanley, global head of fixed-income product strategy at BlackRock. “By combining BlackRock’s expertise in fixed-income investing with YieldStreet’s technology know-how, this fund provides investors with attractive opportunities beyond their usual sources of income.”

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave