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YieldStreet Acquires Athena Art Finance From Carlyle Group, Co-Investors

Mary Meldrum

Digital wealth management platform YieldStreet announced the acquisition Wednesday of Athena Art Finance from the Carlyle Group (NASDAQ: CG) in a $170-million deal.

What Happened

Athena provides art dealers, art galleries and collectors access to tailored financing alternatives that are secured by fine art, according to YieldStreet. The company has originated more than $225 million in loans since the business started in 2015 without any credit losses, according to the press release.

The deal is YieldStreet's first corporate acquisition and comes after a -million Series B funding round announced Feb. 26. The company won best alternative investment platform at the Benzinga Global Fintech Awards last year. 

Why It's Important

YieldStreet said it offers retail investors unique access to alternative investments traditionally only available to institutional investors. Investment funds managed by Soros Fund Management LLC initially invested in YieldStreet’s Series A, followed by an investment in the Series B round. The Soros funds provide warehouse financing for Yield Street, the company said.

“They have exemplified what it means to be a fantastic partner to a rapidly scaling business by providing strategic insights and financial support for this acquisition of Athena,” YieldStreet Founder and President Michael Weisz said in a statement. 

What's Next

As part of YieldStreet, Athena will continue under the executive leadership of Cynthia Sachs, according to Wednesday's announcement.

Carlyle Group shares were trading up by 0.93 percent at $18.47 at the time of publication Wednesday. 

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