Diversifying access or dumping on retail?

I just read this troubling article about YieldStreet which is a VC-backed platform play that looks to provide access to alternative assets such as real estate for retail investors. It turns out that up to 30% of the real estate investments that YieldStreet provided are in risk of default and the company is now rebranding to Willow Wealth alongside removing historical performance numbers.

In general, I’m fairly supportive of giving folks access. I would like to believe that the folks at YieldStreet had the right intentions in mind when they started the company. But when you go to retail, the risks are higher. These are everyday folks with jobs and families to support. Who knows how much of a person’s portfolio was put into these types of investments. The losses could be a material impact on one’s financial future.

I don’t know what went wrong with YieldStreet. I am not well-versed in the real estate space and I do not own any real estate at the moment. But I do know that there is a troubling trend right now with more and more platforms seeking out money from retail.