While it is not yet a wave, fintech consolidation is starting to pick up. And yesterday we learned of another deal, this one in the investing space.
While this deal was telegraphed a few months ago there was an official announcement yesterday. Leading investment fintech Yieldstreet is acquiring the real estate platform Cadre.
Terms of the deal were not disclosed but we had heard that Cadre was struggling to raise money this year so one can assume the acquisition price was far less than their peak valuation from 2017 of $800 million.
Yieldstreet has built one of the largest private investment platforms in all of fintech with around $4 billion invested on its platform across a variety of asset classes including real estate. Cadre is focused exclusively on commercial real estate. Both companies allow individuals as well as institutions to invest on their platforms.
Given Cadre’s singular focus on real estate and with interest rates at mulit-decade highs the going must not have been easy. Now, Yieldstreet is bringing in tens of thousands of new investors and expanding their real estate offerings instantly.
CEO and co-founder Michael Weisz was clearly excited: “What this transaction does for the industry is clearly define a market leader by a factor of five,” Weisz said.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.