Yieldstreet, a private market investment platform, has recently released “The Next Wave,” research conducted in partnership with a global management consulting firm.
The research study reveals a fundamental transformation underway in “how retail investors approach and invest in private market opportunities.”
The research, which surveyed nearly “400 individual investors and industry experts, documents the emergence of a new investment paradigm where private market investments are evolving from specialized alternatives to core portfolio components.”
This shift is pronounced among investors using digital investment platforms, who “demonstrate distinct preferences across asset classes and higher adoption rates of diversified private markets strategies.”
Key findings from the research demonstrate the scale of this transformation:
- Portfolio diversification leads investment rationale: Nearly two-thirds (64%) of investors with over $1 million in investable assets cite diversification as their primary motivation for private markets investing, followed by higher yield generation (53%) and reduced correlation with public markets (27%).
- Brokerage accounts emerge as primary funding source: The research found that 59% of D2C private market investments are funded through brokerage accounts (37% from online platforms, 22% from traditional full-service firms), with the remaining 41% sourced from savings and checking accounts. This reallocation suggests a shift in how individual investors are approaching portfolio construction and diversifying between their public and private markets portfolios.
- Digital platforms alter asset class demand: Platform users demonstrate different investment preferences, particularly in infrastructure, where interest reaches 22% compared to 8% among non-users. This suggests that new and broader access to private market investments may reshape investor preferences, as investors explore asset classes they might not have previously prioritized.
Michael Weisz, Founder and CEO of Yieldstreet said:
“As financial firms rush to bring private markets to self-directed affluent retail investors, we wanted to challenge common assumptions about this audience — including our own. What we found is that when provided access to private markets, investors are actively diversifying between their public and private market accounts to make sophisticated investment decisions across asset classes. The platforms that succeed will be those that deliver the intuitive, digital experience investors have come to expect, paired with institutional-caliber opportunities – enabling them to build diversified portfolios over time.”
Survey Methodology
“The Next Wave” study was conducted from November to December, 2024.
The research combined a survey of 388 accredited and non-accredited US individual investors “with expert interviews of industry subject matter experts and providers in the retail alternatives market.”
With more than 500,000 members, Yieldstreet is a private market investing platform, helping investors “diversify their portfolios with alternative assets spanning real estate, private credit, legal finance, art.”
The platform is differentiated by its “ten asset classes, institutional due diligence standards, strong track record, and commitment to a seamless investor experience.”