YieldStreet Explores Creating a SPAC of Its Own

YieldStreet Inc., the online firm that offers esoteric investments to affluent individuals, is exploring options including a sale, while also weighing setting up a special purpose acquisition company of its own, according to people with knowledge of the matter.

The New York-based company is working with an adviser to solicit interest from potential buyers including blank-check firms, and separately, is in early discussions with potential co-sponsors for its own SPAC, said the people, who requested anonymity because the talks are private. Merging with a SPAC is an increasingly popular way to go public, and some closely held companies have also sought to raise vehicles of their own.

Representatives for YieldStreet declined to comment.

YieldStreet Explores Creating a SPAC of Its Own

YieldStreet, started in 2015 and led by founder and Chief Executive Officer Milind Mehere, pitches itself as a source of passive income for investors who have at least $1 million in net worth or make $200,000 or more a year. It helps provide access to loan deals backed by assets including commercial real estate, litigation financing and art. Venture capital firms including Greycroft and Raine Ventures have invested in YieldStreet, as has Soros Fund Management.

A number of financial technology companies including Social Finance Inc., Payoneer Inc., MoneyLion and Bakkt have agreed to go public through mergers with blank-check firms.

Meanwhile, Figure, a blockchain lending startup led by former SoFi CEO Mike Cagney, this month raised $287.5 million for a SPAC. In its initial public offering filing, which lists Mike Vranos’s Ellington Management Group as a sponsor, the Figure SPAC said it’s seeking a target that can benefit from Figure’s technology platform built on Provenance blockchain.

Almost 250 new U.S. SPACs have announced plans to go public in 2021, seeking a combined $74 billion, according to Bloomberg data. That compares with around 230 that collectively raised $78 billion in 2020.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.