Cadre Acquisition: Key Details, Impact, and What Comes Next

Yieldstreet's acquisition of Cadre, completed on January 23, 2024, marks a significant milestone in the private market investing industry. This strategic move integrates Cadre's institutional clients and high net worth investors into Yieldstreet's platform, enhancing its investment offerings and liquidity options. The combined entity now manages over $9.7 billion in investments, setting a new standard for private market alternatives.

What Is Cadre?

Founded in 2014, Cadre specializes in commercial real estate investment management. Its core offerings include Cadre Funds, Deal-by-Deal investments, and an innovative Secondary Market. Cadre differentiates itself with a fiduciary commitment to investors, rigorous due diligence, and a data-driven approach. The company focuses on single-asset value investing in the underserved middle market, aiming to deliver compelling risk-adjusted returns. Cadre's experienced team has invested over $140 billion across multiple economic cycles.

Who Acquired Cadre?

Yieldstreet is a prominent platform in the private market investing industry, offering a range of alternative investment opportunities. Its key products include real estate, private credit, private equity, art, and venture capital. Yieldstreet also provides diversified funds and legal finance options. The company is known for its rigorous due diligence process, with only about 10% of reviewed deals making it to the platform. Since its inception in 2015, Yieldstreet has achieved a 9.6% net annualized return across nearly 150 matured investments.

When Was Cadre Acquired?

Yieldstreet completed its acquisition of Cadre on January 23, 2024, following the initial announcement on November 30, 2023. This acquisition occurred ahead of anticipated industry consolidation, positioning Yieldstreet to accelerate its growth and solidify its leadership in the private market investing space. The timing also coincides with a broader shift in investor portfolios towards private markets, making the acquisition a strategic move to enhance Yieldstreet's offerings and market position.

Why Was Cadre Acquired?

• Market Expansion: The acquisition of Cadre allows Yieldstreet to expand its market presence by integrating Cadre’s premier institutional clients and thousands of high net worth investors. This move accelerates Yieldstreet’s growth and solidifies its leadership in the private market investing platform space. The combined entity will serve more than 500,000 members across eight institutional and retail distribution channels, broadening access to institutional real estate and other alternative asset classes.
• Technology Integration: The integration of Cadre’s unique investment platform into Yieldstreet’s operations is a key aspect of the acquisition. This includes offering additional institutional-quality investments, enhanced liquidity through a secondary market, and new ways to invest in private markets, all on one unified platform. Cadre's tech-driven platform will streamline the process of investing in private market offerings, enhancing the overall investor experience through sophisticated technology.
• Competitive Advantage: The acquisition strengthens Yieldstreet's competitive advantage by combining its diversified portfolio of private market investments with Cadre's top-tier real estate investment platform. The partnership with key institutional investors like Thrive Capital, Andreessen Horowitz, and Khosla Ventures will accelerate distribution to institutional channels. The combined expertise and resources will enhance Yieldstreet’s ability to offer institutional-caliber products and innovative solutions, setting a new standard in private market investing.

Acquisition Terms

• Acquisition Price: The financial terms of the transaction were not disclosed.
• Payment Method: The payment method is not specified in the provided content.
• Key Conditions or Agreements:
  • Ryan Williams will continue to lead Cadre as CEO and also serve as Global Head of Institutional Partnerships & Clients.
  • Cadre CIO Dan Rosenbloom and the full Cadre investments group will join Yieldstreet.
  • Mike Fascitelli will serve as the Cadre Global Chairman of Real Estate and continue to head Cadre’s Investment Committee.
  • The transaction remains subject to regulatory review.
  • All Cadre employees will stay on post-acquisition.

Impact on Cadre

The acquisition of Cadre by Yieldstreet has led to significant changes in operations and management. Ryan Williams continues to lead Cadre as CEO while also serving as Global Head of Institutional Partnerships & Clients at Yieldstreet. Additionally, Cadre's Chief Investment Officer, Dan Rosenbloom, and the entire investments team have joined Yieldstreet. Mike Fascitelli has taken on the role of Cadre Global Chairman of Real Estate and heads Cadre’s Investment Committee. These changes aim to integrate Cadre’s expertise and institutional client base into Yieldstreet’s broader platform, enhancing operational efficiency and strategic alignment.

Product offerings and services have also seen notable enhancements. The acquisition allows Yieldstreet to offer additional institutional-quality investments and increased liquidity through a secondary market. Investors now have access to a broader range of private market asset classes, including tax-advantaged accounts and managed portfolios. While specific employee and customer reactions were not detailed, the integration is positioned as beneficial for both groups, suggesting a positive outlook. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.