Citi is partnering with YieldStreet, an alternative investment fintech - Business Insider

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Wealth startup YieldStreet just nabbed backing from Citi and inked a deal to sell billions in private-credit and structured products to the mass affluent crowd

and digital wealth management to customers beyond Wall Street's big-money investors. It also highlights pushes by larger, more institutionalized financial services firms' pushes to back digital investment platforms.

Citi is backing YieldStreet through a fintech investment unit within the bank, which formed in 2018 and is geared toward startups in the debt and private credit markets. In November, that unit also invested inYieldStreet cofounders Milind Mehere and Michael Weisz.For now, investments offered by YieldStreet, which oversaw some $345 million in assets in November per a regulatory filing, are only accessible to accredited investors who have to prove a level of income, or net worth.

Given the risks that can come with smaller individual investors investing in sophisticated investments, Weisz said YieldStreet aims to educate investors with a team of experts on-hand and digestible educational literature. The company is backed with $178 million in equity and debt funding from firms including Edison Partners, Greycroft, and Raine Ventures, in addition to a warehouse facility from Soros Fund Management. Soros has upped that line of credit from $100 million to up to $250 million, YieldStreet said on Wednesday.

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