Alternative investment platform Yieldstreet announced it will give its more than 500,000 clients access to Wilshire Advisors research, analytics and due diligence of private funds.
The partnership allows advisors to access three portfolios containing various private strategies such as private equity, private credit, and private real estate assets vetted by both firms.
“This partnership is a perfect amalgamation of the work Wilshire does in research and choosing investments ... with the leading platform that connects these types of strategies to individual investors,” said Jason Schwarz, deputy chief executive officer and president of Wilshire, which is based in Santa Monica, Calif.
Wilshire works primarily with large institutions and endowments, providing them with investment solutions and advice. In recent years, it has been working to expand access to the private markets to a larger audience.
The partnership with New York-based Yieldstreet is another step in that direction, as it will make its strategies available to Yieldstreet clients, including direct investors, advisors, and institutions.
Wilshire will offer three model portfolios that will provide a pre-determined asset allocation across different private market asset classes, according to Michael Weisz, founder and chief executive officer of Yieldstreet.
“Now the advisor can come and buy any one of our model portfolios and feel comfortable that there’s been a lot of due diligence and work that was done between Wilshire and Yieldstreet and seamlessly put the advisor’s client into the portfolio,” he said.
Along with the model portfolios, Wilshire will provide access to a series of private markets investment opportunities the firm has vetted, the companies said.
“Wilshire is now going to leverage its ecosystem of all this really interesting investment opportunities that historically have been reserved for just the absolute wealthy and the largest institutions and now share portions of that with Yieldstreet,” Weisz said.
Wilshire believes larger institutions have seen greater success with their overall portfolios because of their greater exposure to alternatives.
“You look at the reason why institutional investors have handily out-performed individual investors decade after decade it’s often the exposure and access to these types of strategies, private markets in particular,” Schwarz said.