Citigroup Teams With YieldStreet To Offer Credit Investments
Zacks Investment Research | Jan 08, 2020 08:51PM ET
Citigroup (NYSE:C) has entered into partnership with YieldStreet, a digital wealth management platform, to offer its credit investments to a wide range of individual investors.
Based in New York, YieldStreet has originated more than $1.2 billion of investment opportunities since its launch in 2015. It seeks to enable individual investors to access investments across a range of asset classes such as Real Estate, Marine Finance, Art Finance, Legal Finance and Commercial loans.
Citi’s Spread Product Investment Technologies (Sprint) unit, created in 2018, is backing the partnership. It seeks to tie up with firms that aim to reshape the $40 trillion debt and private credit markets.
“We have always regarded YieldStreet as an innovative platform in the market, bringing institutional-style investments to a broad audience,” said Matt Zhang, Head, Sprint, Citi. He added, “We’re really excited to partner with the YieldStreet team and believe there is a tremendous opportunity for us to scale our relationship together.”
Per a Bloomberg article, the partnership will be offering assets of about $2 million over a period of 24 months.
Our Take
Citi continues to execute growth strategies, such as making entry into the booming digital consumer payments industry and expanding global market presence, thereby aiming to diversify revenue sources. This is also reflective of management’s focus on enhancing the company’s performance.
Also, solid prospects, driven by revenue growth, expense management and inorganic expansion strategies keep us encouraged. However, pending litigation issues might lead to higher legal expenses.
Shares of Citi have gained around 10.9% over the past six months compared with 15% growth recorded by the Zacks Investment Research
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