Yieldstreet, a private market investment platform, has entered into a definitive agreement to acquire Cadre, an online real estate-focused investment platform catering to institutional and high net worth investors.

Under the terms of the agreement, Yieldstreet is set to strengthen its position in the market, absorbing Cadre’s flagship institutional clients, unique investment platform, and an extensive base of high net worth investors.

The move comes with a collective Investment Value exceeding $9.7bn, reflecting the confidence investors have placed in both platforms, with $5.3bn allocated and $3.1bn returned to investors to date.

Investors stand to benefit from this strategic alliance, gaining access to a broader range of asset classes for enhanced diversification. Additionally, proprietary platform capabilities, such as a secondary market, promise increased liquidity and convenience.

Yieldstreet and Cadre collectively serve an impressive membership base, boasting over 500,000 members across eight institutional and retail distribution channels. This acquisition positions Yieldstreet to integrate Cadre’s entire team, including its investments team led by Chief Investment Officer Dan Rosenbloom.

Yieldstreet CEO Michael Weisz said: “Yieldstreet set out to create a category eight years ago. Today, we are leading the industry forward and setting the stage for accelerated growth, both organic and inorganic.

“We will continue to pursue strategic opportunities to increase revenue, enhance profitability, drive operating synergies, and unlock new channels for distribution or exceptional technology.

“Expanding complementary distribution channels and markets beyond the U.S., investment portfolios and capabilities with Cadre is just the beginning.”

Ryan Williams, currently the CEO of Cadre, will play a pivotal role in the new venture, spearheading a division dedicated to expanding access to the institutional audience. In his new position as Yieldstreet’s Global Head of Institutional Partnerships & Clients, Williams is poised to contribute significantly to the collaboration.

The seasoned industry veteran, Mike Fascitelli, an investor in and advisor to Cadre, will take on the role of Global Chairman of Real Estate and Head of Cadre’s Investment Committee.

The strategic alignment of Yieldstreet and Cadre is emphasized by their shared commitment to enhancing the private market investing experience. With key partners like Thrive Capital, Andreessen Horowitz, and Khosla Ventures, Cadre brings an exceptional institutional partner and client list that is expected to expedite distribution to institutional channels.

The real estate portfolio of Cadre further complements Yieldstreet’s well-established offering.

Yieldstreet distinguishes itself by providing investors with a platform that prioritises simplicity, transparency, and trust. Its sophisticated technology streamlines the process of investing in offerings that meet rigorous due diligence standards, enabling private market investment distribution at scale.

Williams said: “After nearly a decade of building a top-tier real estate investment platform that has generated compelling returns for institutional investors, we are incredibly proud to take the next step in our journey to broaden access to institutional real estate and other alternative asset classes alongside Yieldstreet.

“Together with Yieldstreet, we look forward to helping expand institutional distribution and broadening its offering of institutional-calibre products and innovative solutions that reduce friction for investors in private markets.”

The transaction is currently subject to regulatory review.