Careful examination of K1 documents in multiple investments shows unexplained and unreported changes in ownership percentages of investments, some of which continue to be considered "perfoming" and yet shares are dilluted by as much as 2/3 without ever notifying investors. This is not acceptable.
The K-1 statement is the only place where the reduction in my ownership percentage of Art Equity IV is documented—there is no mention of it anywhere in the Yieldstreet investor portal, quarterly reports, or any other communication. Between 2022 and 2023, my reported ownership in this fund dropped from 0.24% to 0.082%, representing a dramatic and unexplained reduction.
What makes this particularly troubling is that throughout this period, Yieldstreet consistently reported strong performance for the artwork in this fund. Nowhere in their updates did they mention any activity that would have led to dilution—no sales, no restructuring, and certainly no disclosure that investor ownership was being reduced. There was no investor vote, no prior notice, and no attempt to explain why or how this happened.
If Yieldstreet can arbitrarily reduce my ownership percentage without any transparency or approval, what stops them from reducing it to zero or some infinitesimally small fraction? The lack of accountability here is alarming. When I reached out to ask for an explanation, I received no meaningful response—just vague assurances that they would "get back to me," but nothing of substance ever followed.
This is not just an isolated incident; other investors have reported similar unexplained reductions. Without transparency, Yieldstreet’s actions raise serious concerns about whether investor ownership in these funds means anything at all.