Yieldstreet has adopted a new name, Willow Wealth, as the private-markets investment platform seeks to distance itself from a troubled past marked by mounting investor losses and defaulted real estate projects. The rebranding comes as the firm disclosed another $41 million in losses tied to properties in Houston and Nashville, raising the total to at least $208 million.
The firm also removed 10 years of historical performance data from public view, including a chart showing that its real estate investments had produced annualized returns of negative 2% from 2015 to 2025.
Willow Wealth said the shift is part of a broader strategy change, moving from proprietary deals toward distributing private market funds managed by firms including Goldman Sachs and Carlyle Group.
Why Yieldstreet’s Rebrand Is Happening Now
The new losses add to a growing list of defaults on funds originally marketed as offering higher returns and lower volatility through private assets. As previously covered, investors had already absorbed $89 million in marine-loan losses disclosed in September and another $78 million earlier this year.
Analysts say the rebrand underscores the reputational damage Yieldstreet accumulated as returns deteriorated. Boston University finance professor Mark Williams said the firm “had to change their name,” adding that removing performance metrics “makes it harder to uncover their poor performance.”
Internal documents show that several high-profile real estate investments struggled to meet revenue targets amid rising borrowing costs. One newly revealed default involves two funds tied to a 268-unit Nashville apartment building, where investors were told their equity is expected to be wiped out entirely.
Willow Wealth attributes these failures to the Federal Reserve’s 2022 interest-rate hiking cycle, which made floating-rate debt significantly more expensive to service. The company maintains the troubled deals represent a small portion of its overall portfolio.
At the same time, the firm is trying to reposition itself as a distributor of institutional-grade private funds. These products, however, carry high fees – with all-in annual costs often ranging between 3.3% and 6.7% per fund, far above typical ETF fees below 0.2%.
For Investors
The rebrand raises fresh questions about transparency in private markets, where investors rely heavily on fund managers for disclosures and updates. Willow Wealth says removing its historical return data reflects its pivot toward external managers, but critics argue that customers now have less visibility into performance at a time when losses continue to climb.
For investors still locked into underperforming or defaulted deals, the name change provides little relief. Nine of the 30 real estate investments reviewed since August are now in default – a roughly 30% failure rate that far exceeds typical private-credit default expectations.
The firm says it will continue to communicate deal-level updates and believes its new strategy offers stronger long-term prospects. But the episode underscores the risks ordinary investors face as private markets become more accessible, especially as regulators weigh rules around allowing such assets in retirement accounts.
As retail demand for alternatives grows, the Willow Wealth saga may become a cautionary tale on balancing access with appropriate oversight.
