Online alternative investment platform Yieldstreet is undergoing a significant corporate transformation. The company is adopting the new name, Willow Wealth. This strategic rebrand follows months of intense scrutiny regarding massive losses in its real estate portfolio. The firm originally promised retail investors access to exclusive private market opportunities. However, many users now face the loss of their entire investment capital.
The name change attempts to reflect a broader mission beyond simple “yield” products. This pivot comes at a critical time for the financial technology company. A detailed CNBC investigation exposed the extent of the recent investment failures. This report highlighted how aggressive leverage and sharp interest rate increases decimated many real estate projects. These offerings were sold to thousands of everyday investors.
Scale of Investor Fallout
The financial pain centered on deals offered between 2021 and 2024. Analysts reviewed data for 30 specific real estate deals. Investors poured more than $370 million into these projects alone. The investigation found a disturbing pattern of distress. Four of these reviewed deals have been declared total losses, wiping out 100% of investor capital. Furthermore, 23 additional projects landed on an internal “watchlist.” This designation indicates substantial performance problems.
The recognized defaults from these troubled investments already total approximately $78 million. Many small investors report losing life-changing amounts of money. One investor told reporters he lost $400,000 across two projects. He stated the company misled him regarding the true risk level. These customers now accuse the firm of lacking transparency. They also question the firm’s overall risk management strategies.
Regulatory History and New Direction
This is not the first time the company has faced regulatory backlash. The firm paid a $1.9 million penalty to the U.S. Securities and Exchange Commission in 2023. The SEC fine resulted from undisclosed risks in a marine loan product. The underlying collateral for that investment was ultimately stolen. Facing growing criticism, the company installed a new CEO, Mitch Caplan, in May 2025. Caplan previously served as CEO of E-Trade Financial.
The executive shift signals a major strategic pivot. The newly branded Willow Wealth recently secured a $77 million funding round. Management is now shifting focus away from sourcing many individual deals internally. Instead, the platform will feature vetted funds from major institutional partners. These partners include firms like The Carlyle Group and Goldman Sachs. The company also launched a new automated offering called Willow 360. This product provides pre-diversified exposure to private markets.
The company insists the rebrand is not an attempt to escape its past. Rather, it represents an evolution toward a more flexible and diversified offering. For many retail investors, however, the Willow Wealth change stands as a stark reminder. It highlights the inherent danger of seeking private market returns without proper institutional-level risk protection.
