Alternative investment platform Yieldstreet plans to acquire online real estate investment platform Cadre in a move expected to improve the positioning and market presence of both companies.
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The deal will expand Yieldstreet's presence through Cadre's "institutional clients, unique investment platform and thousands of high net worth investors," Yieldstreet said in a release Thursday.
Collectively, the two platforms are valued at more than $9.7B. Investors in the two companies have allocated $5.3B to the platforms and received $3.1B in returns since their inceptions.
Together, the companies serve 500,000 members, 450,000 from Yieldstreet and 50,000 from Cadre.
"Expanding complementary distribution channels and markets beyond the U.S., investment portfolios and capabilities with Cadre is just the beginning," Yieldstreet CEO Michael Wiesz said in a statement. "We are thrilled to welcome Cadre to the Yieldstreet family."
The sale isn't final, as it is subject to regulatory review, and the sale price hasn't been disclosed.
Founded in 2014 by Ryan Williams and Jared and Joshua Kushner, Cadre allows investors to buy fractions of shares in commercial real estate below what is typically allowed from accredited investors. The company was once valued at $800M, though its value has dropped off considerably in recent years, TechCrunch reported.
News of the purchase comes after Cadre had been in talks to be acquired in August. Multiple parties expressed interest, with the bid from Yieldstreet valued at $100M, The Information reported.
Williams will remain in his position as CEO through the acquisition and lead a new division that will broaden investment opportunities in the role of global head of institutional partnerships and clients.
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