Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in private market alternatives
Invest in multimillion-dollar art shares
The minimum investment required on Mintus for art investment opportunities is $3,000, with investment amounts typically ranging from $15,000 to $100,000.
Yieldstreet investments, focused on high-yield, specialty lending, carry inherent risks higher than traditional investments, primarily due to the potential for borrower default.
Investing in Mintus carries risks such as market volatility affecting art values, limited liquidity options until the secondary market launches, potential regulatory changes impacting investment practices, operational challenges, and the subjective nature of art valuation.
Yieldstreet's investments are generally less liquid, meaning they cannot be quickly sold for cash. These private market alternatives often require longer holding periods.
Mintus plans to introduce a secondary market feature, which is currently marked as "coming soon". This future addition aims to enhance liquidity by allowing investors to sell their shares in artworks to other users, although it's not yet available.
The expected net annualized return (IRR) for investors on Yieldstreet is 9.6%.
Mintus targets an 8.9% annual growth rate for investments, though actual returns may vary due to market conditions and art performance.
Yieldstreet's investments span time horizons from as brief as 6 months to as long as 5 years.
Investments through Mintus generally have a long-term horizon, often spanning several years, due to the nature of art appreciation and market trends. Exact duration may vary based on specific artworks and market conditions, with potential for earlier liquidity once the secondary market is introduced.
Yieldstreet is open to U.S. persons with a valid TIN, U.S. bank account, and U.S. mailing address. Non-accredited investors can access the Alternative Income Fund, while single asset investments require accredited investor status verification.
Mintus allows both individual investors and institutions to invest in artworks. Individual investors need to qualify as "high net worth individuals", "sophisticated investors", or "accredited investors" and pass an appropriateness assessment. Institutions like wealth managers and family offices should contact Mintus directly for specific investment options.
Assets on Yieldstreet, being alternative investments, often show different volatility compared to traditional markets, potentially offering less correlation with broad market swings.
The volatility of assets on Mintus, consisting of high-value artworks, is influenced by art market dynamics, economic factors, and the unique characteristics of each piece, such as rarity and provenance. These elements can cause fluctuations in art valuations, making them inherently volatile investments that require careful consideration.
Yieldstreet is regulated and undergoes regular audits for compliance. Its partnership with Synapse Brokerage LLC, an SEC-registered broker-dealer and FINRA and SIPC member, ensures adherence to strict financial regulations.
Mintus is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. This regulatory oversight ensures Mintus meets strict standards for investor protection, transparency, and market integrity, although specific audit details are not mentioned.
Funds in the Yieldstreet Wallet are insured up to $250,000 by the FDIC, with deposits between $250,001 and $1 million spread across multiple FDIC-insured banks for extended coverage.
Details on insurance for artworks on Mintus are not explicitly mentioned. Typically, art investment platforms secure artworks against risks like damage or theft through insurance.
Yieldstreet offers varied dividend or interest payment structures: fixed income investments provide monthly payments at a target yield, diversified portfolios offer quarterly target yields, and art investments yield returns upon sale, all subject to specific terms and potential annualized net returns.
Mintus does not offer traditional dividends. Instead, investors gain returns through the appreciation and eventual sale of the artworks, receiving profits based on their share ownership.
Investors on Yieldstreet receive distributions directly into their Yieldstreet Wallet and can withdraw these funds to their bank account as desired.
Investors on Mintus receive their returns after the sale of an artwork, with profits made available in their wallet. They can then choose to withdraw these funds to a bank account or reinvest in other artworks on the platform.
Yieldstreet's fees include a range from 0% to 2.5% annual management fees, structured notes incur a 1.25% annual management fee plus a $150 annual fund expense, the Yieldstreet Alternative Income Fund charges a 1.0% annual management fee and up to a 0.5% annual administrative expense.
Fees on Mintus vary by artwork and investment structure, with all fees shown in advance in the Memorandum document available for each opportunity.
Yieldstreet issues either a K-1 or 1099 form for tax purposes, based on the legal structure of the investment, with details provided on the offering page and in downloadable documents when new offerings are launched.
Mintus notes that artworks don't generate income while held, so tax implications mainly stem from capital gains upon sale.