Willow Wealth, previously known as Yieldstreet, has introduced Hampton Dumpty as its new corporate mascot in the midst of a major rebranding effort. The move comes as the company aims to distance itself from its troubled past. As reported, Willow Wealth has informed its customers about new defaults on real estate projects in Houston and Nashville, Tennessee, totaling approximately $41 million in losses. This development follows $89 million in marine loan defaults and $78 million in previous real estate losses, adding up to over $208 million in total investor losses according to CNBC reporting.
In tandem with the rebranding, Willow Wealth has removed a decade of its historical performance data from public view. A previously available chart illustrating a shift from 9.4% gains to -2% annualized returns for real estate investments over a decade has been taken down. Boston University's Questrom School of Business professor, Mark Williams, noted that the name change and removal of this data are attempts to restart with a clean slate while obscuring past performance issues.
Although lauded for its potential to democratize alternative investments typically reserved for wealthy investors and institutions, Willow Wealth has left some of its retail investors with considerable losses. The risks inherent in private markets, which lack transparency and liquidity, have been a growing concern. Despite these risks, asset management giants like BlackRock and Apollo Global Management continue to eye retail investors as an untapped capital source.
Amidst these developments, Mitch Caplan, the CEO of Willow Wealth and former E-Trade chief, announced a strategic shift for the company. It will begin offering private market funds from major Wall Street firms such as Goldman Sachs and Carlyle Group alongside its own deals. A company spokeswoman emphasized their commitment to transparency, stating: "Transparency is paramount to us, and we consistently provide strategy-specific performance information for each manager at the offering level to support informed decision-making."
In response to reports on the recent real estate defaults, the spokeswoman described the coverage as a "rehash" of information on investments dating back five years, asserting that these represent only a minor segment of their overall portfolio.