Structured products and annuities platform Luma Financial Technologies announced Friday that it has broadened its existing partnership with the private market investing platform Yieldstreet.
Yieldstreet, which facilitates private market investments in many different alternatives—art, real estate, private equity, supply chain financing, among other more esoteric investment options—has served individual investors, both accredited and non-accredited, since its launch in 2015. It currently has more than 450,000 clients and claims that just shy of $4 billion has been invested through the platform.
“Yieldstreet is already very strong from a consumer standpoint and one of the exciting parts for the partnership is getting advisors access to Yieldstreet’s broad offerings,” said Tim Bonacci, CEO and founder of Luma, in an interview with WealthManagement.com.
Luma’s platform is used by thousands of advisors for access to alternative investments. The technology lets advisors search for, and compare, options and manages any ongoing investment process required.
Through the new collaboration with Yieldstreet, Luma users will get more education around the broader range of investments on the Yieldstreet platform as well as additional management and reporting tools.
“This is sort of our first big push into the RIA channel,” said Yieldstreet CEO Michael Weisz.
“The entire Yieldstreet lifecycle is completely automated; it remains surprising how much of the industry is still very manual [when it comes to alternatives], and we’ve done a lot of work on the structured product side,” he said.
“Comparing, selecting and managing alternatives—at scale—is going to be incredibly important for growth-oriented firms,” said Bonacci, emphasizing the point of management at scale.
The two firms established their first partnership in June 2022, when when Luma's performance and portfolio analytics were made accessible within Yieldstreet's platform.
Luma has worked with many large industry firms in the advisory space. In June it announced a partnership with Chicago-based SpiderRock Advisors, a provider of options strategies to the wealth market. That collaboration gave advisors direct access to "structured note replication" strategies via separately managed accounts. In early 2022, Luma partnered with Morningstar to make its structured notes data and analytics available to users of Morningstar's Advisor Workstation, and later that year the two also collaborated on Morningstar’s launch of its Annuity Intelligence Center, using Luma's data.
Luma Financial Technologies was founded in 2018 and is backed by Bank of America Merrill Lynch, Morgan Stanley and Navian Capital, among other early investors.