Frequently Asked Questions

Yields Credit provides exclusive access to high-performing private market funds with a commitment to driving global decarbonization. Our innovative investment approach leverages blockchain technology to pool resources through Yields Credit investment vehicles. This ensures seamless and secure transactions, with all cash transfers, fees, and expenses processed through our decentralized platforms. As your trusted representative, Yields Credit connects you with top-tier underlying funds. To deliver exceptional security and efficiency, we collaborate with industry-leading partners such as Trustmoore, Finnius, Zuidbroek, and Amstone.

Yields Credit offers Portfolio Funds and Direct Funds, leveraging blockchain technology to transform the way you invest in private equity. Portfolio Funds: These funds tokenize investments across a curated set of 8-15 climate-focused private equity funds. By harnessing the power of crypto, Portfolio Funds deliver a diversified and decentralized investment product designed to reduce risk while supporting sustainable initiatives. Direct Funds: Perfect for hands-on investors, Direct Funds allow you to allocate crypto directly into a single tokenized fund. This gives you the freedom to strategically build and customize your own blockchain-powered portfolio. With Yields Credit, every investment drives innovation, transparency, and a greener future.

Crowdfunding platforms enable you to invest in single companies. Typically, you must do your own homework on the opportunity. The risk of a single company failing is very high — hence the risk of crowdfunding is typically very high.

Yields Credit allows you to invest in private equity funds, which are generally more diversified, curated, and professionally managed compared to crowdfunding.

Diversified: Crowdfunding platforms raise money for individual startup companies. Yields Credit funds, powered by blockchain, invest in multiple startups simultaneously, reducing risk and increasing opportunities.

Curated: Crowdfunding requires investors to research and select companies themselves. Yields Credit simplifies this process by utilizing its experienced investment team to carefully select high-potential opportunities.

Professionally managed: Yields Credit and its private equity fund partners leverage cutting-edge blockchain infrastructure and professional expertise to ensure companies receive the support they need to grow and succeed.

When you invest in the stock market, you are investing in public companies. A public company is one that has undergone an initial public offering (IPO) and whose shares can be bought, sold, or traded on a stock exchange.

Yields Credit specializes in private equity, an asset class focused on acquiring tokenized ownership stakes (equity) in privately held companies that are not listed on a stock exchange. By leveraging blockchain technology, Yields Credit provides secure and efficient access to these opportunities. The investment horizon, cash flows, and other dynamics of private equity differ significantly from stock market investing. Learn more about this in the "How It Works" section below.

After finalizing your subscription to a fund, you will receive a **capital call**. A capital call is a request to transfer your committed investment amount. With an investment of €100,000 or more, the first capital call will be the greater of €100,000 or 25% of your commitment. The remaining commitment will be drawn over approximately 5 years through semi-annual installments. These installments, typically around 5-10% of your total commitment, are based on the expected funding needs of the tokenized underlying funds. By leveraging blockchain technology, Yields Credit ensures transparency and efficiency in managing capital calls and fund allocations.

Yields Credit funds typically have a duration of 10-13 years, just like the private equity funds Yields Credit invests in. During the first 3-5 years, these funds invest part of the money into startup and scaleup companies. The remaining years they use to continue investing in, grow and sell these companies.

If you invest with Yields Credit, you commit money for the full lifetime of the fund. That doesn’t mean you don’t see any money back before the end date. Any time a portfolio company is sold or goes public, you receive your share of the proceeds. On average, you get your initial investment back within 5-7 years, and your additional proceeds come in the years after.

The investment process consists of 5 steps:

• Create an account: Start by creating a free account to access detailed information about our tokenized funds and compare your investment options securely.
• Request fund info: On each fund page, request more details about our blockchain-powered investment strategies and the diligence performed on each underlying fund.
• Reserve your investment: Once you decide to proceed, complete the **Reservation to Invest** form. This reservation is non-binding and simply indicates your interest.
• Onboarding and subscription: You’ll be invited to a seamless digital onboarding process where you’ll review and sign a subscription form. The subscription form is binding.
• Capital call: After subscribing, you will receive your first **capital call**—a request for the initial transfer of your committed investment amount, facilitated securely through blockchain infrastructure.

Currently, the minimum investment for most funds is $100,000.

Cash outflows: Depending on the amount you commit, your investment will either involve a single upfront capital call (the full amount) or multiple capital calls spread out over several years. These calls are processed securely via blockchain. See “How and when do I need to transfer my investment?” for more details.

Cash inflows: Typically, funds begin to exit their tokenized ownership stakes in companies (e.g., selling their equity shares) after 5 years. Cash proceeds are then distributed to investors periodically. On average, you can expect to receive proceeds equal to your initial investment within 5-7 years, followed by incremental profits in subsequent years.

J-curve: The cash flow pattern of venture capital or private equity funds often resembles a J-curve. During the early years, funds may show negative returns due to investment costs, management fees, and immature portfolios. However, as the investments mature, the returns typically increase, reflecting the growth and success of the tokenized assets.

‍

Target returns will differ per fund. Portfolio Funds are well diversified and aim to return 2-2.5x your invested capital over the lifetime of the fund (10-15% net IRR).

Direct funds aim to return anywhere between 2-3x your invested capital (12-25% net IRR). Because a direct fund is less diversified (one fund rather than multiple funds), the range of outcomes may be more wide than the range of outcomes for a highly diversified Portfolio Fund.

Fund reporting: Investors receive a quarterly financial overview of their tokenized fund holdings, including capital account statements, commitment summaries, insights from our investment team, and updates on fund performance—all secured via blockchain technology.

Investment dashboard: The investment dashboard provides real-time access to your entire portfolio, showcasing a continuous stream of milestones and updates from tokenized portfolio companies. You’ll also find educational resources and insights on how your investments contribute to solving global climate challenges.

Impact reporting: Through our investor portal, you’ll gain access to detailed stories about the companies in your portfolio, including the challenges they aim to solve and the potential scale of their impact. We also share comprehensive impact reports from the private equity funds you’re invested in, alongside insights from our Head of Impact to help you interpret this data effectively.

No, early cash-outs are not permitted for your investment. However, if you wish to exit early, you may seek a buyer for your tokenized shares. Yields Credit may assist in facilitating this process on a **best-effort basis**, but please note that no guarantees can be made about finding a suitable buyer. Additionally, secondary transactions for tokenized private equity shares often occur at a discount to their market value, reflecting the illiquid nature of these investments.

No, you cannot select specific companies to invest in on the Yields Credit platform. Instead, Yields Credit enables you to invest in tokenized funds managed by a team of expert investors. Your investment will be allocated across the entire portfolio of the selected fund. If you wish to focus on a specific investment area within climate tech—such as agri-food or growth equity—you can choose a Direct Fund rather than a Portfolio Fund. Direct Funds allow you to target a specific niche, while Portfolio Funds provide diversification by investing in multiple tokenized companies, reducing the overall risk of losing your initial investment.

Investors incur two layers of fees when investing. Fund managers typically charge an annual management fee of 1.5%-2%. Initially, this fee is applied to the committed capital, and after the investment period (usually 3-5 years), it is charged on the capital that has been deployed. Additionally, most funds will take 20% of the returns that exceed a certain minimum hurdle rate, typically an 8% annual return.

Yields Credit applies a 1% setup fee and an additional annual management fee of 0.3%-0.95%. These fees cover blockchain-enabled access to tokenized funds, expert selection of the right investment opportunities, and streamlined administration to ensure a seamless and secure investing experience.

We’ve kept it simple. When the person you refer mentions your name while reserving an investment, both you and your referral automatically receive a **0.05% discount** on your annual management fees. This is our way of rewarding you for growing the Yields Credit community. Find more details about our Ambassador Program here.

At Yields Credit, we believe everyone should have access to impactful investment opportunities—that’s central to our mission. However, investors need to meet the minimum ticket size, which is currently set at **$100,000** for most tokenized funds.

Yes, investors from around the world can invest with Yields Credit. However, some countries may require investors to meet **Accredited Investor** or **Qualified Investor** criteria. These standards often include having a minimum net worth, a certain level of annual income, or professional experience in investment management. The specific requirements vary by country, so be sure to check the criteria applicable to your region.

Yields Credit invests in high-growth climate tech companies using blockchain technology to enable tokenized investments. These companies develop innovative products and services that contribute to achieving net-zero CO2 emissions, such as next-generation solar panels, plant-based cheese, zero-carbon aviation fuel, and carbon accounting platforms. Explore our portfolio companies here.

Yields Credit focuses on seven critical sectors: energy, industry, agrifood, transportation, buildings, carbon control, and enablers. Each sector plays a vital role in driving the transition to net-zero CO2 emissions, and through blockchain-driven investment, we make it easier for investors to contribute to these transformative solutions.

Yields Credit boasts a highly experienced investment team with decades of expertise in private equity fund investing and energy transition strategies. Leveraging blockchain technology, the team follows a rigorous 4-step process to select the best tokenized funds. Learn more here.

Yields Credit leverages its extensive network of advisors, shareholders, and clients to access top-tier tokenized funds. These funds are eager to partner with Yields Credit, as they share its mission of democratizing investment access through blockchain technology. Yields Credit adds further value to its fund partners by utilizing a best-in-class climate diligence framework and offering expertise in climate fund best practices, ensuring that investments drive meaningful impact and align with net-zero goals.

First, we evaluate how committed a fund is to delivering measurable impact. Funds demonstrate their commitment in several ways, including their impact mandate, impact goals, thresholds, sourcing strategies, and incentives. Next, we rigorously assess each fund's climate impact using our proprietary climate impact scorecard. This blockchain-enabled framework collects detailed inputs on over 40 questions across 12 critical topics, ensuring a transparent and data-driven evaluation of the fund’s potential to drive sustainable change.

Investments in venture capital and private equity funds, including those tokenized through blockchain, involve a high degree of risk. Past performance is not indicative of future results. The value of your investment may fluctuate, and investors may not recover their original capital. Please carefully review the fund documentation for detailed information on potential risks, charges, and expenses.

**Yields Credit Portfolio Funds** offer enhanced diversification through blockchain-enabled pooling of investments across multiple projects, making them less risky compared to a Direct Fund investment, which focuses on a single fund.

Investments in Yields Credit funds are considered illiquid. As such, investors should only commit capital they can afford to set aside for up to 10 years.

Given the high-risk and illiquid nature of venture capital and private equity, investors are encouraged to allocate a prudent portion of their liquid net worth to this asset class. Professional investors typically dedicate 20-30% of their liquid net worth to private equity investments.

Yields Credit manages a variety of funds, each structured to align with the commercial goals of the fund and the needs of its investor base. These funds leverage blockchain technology for secure and transparent operations while adopting different legal forms under Dutch law:

**Contractual Funds for Joint Accounts (FGR):** Most Yields Credit funds are structured as an **FGR** under Dutch law. This contractual arrangement between the fund manager and its investors mandates that the manager invests and manages the contributed assets for the joint account of the participants. A separate legal entity, structured as a **foundation (stichting)**, holds the legal ownership of the assets and liabilities. For Dutch tax purposes, FGRs are typically structured as **closed-ended** and **tax-transparent**, meaning any income and gains from the investments are attributed directly to the participants, as if they were investing in the portfolio directly.

**Cooperative Funds (Coöperatie):** Yields Credit also manages funds structured as cooperatives under Dutch law. A cooperative is a limited liability entity with legal personality, owning its assets and liabilities in its own name. Unlike FGRs, cooperatives are **non-transparent** for Dutch tax purposes, meaning that tax obligations are handled at the cooperative level rather than passed through to the investors.

**Limited Partnerships (Commanditaire Vennootschap):** Yields Credit intends to manage funds structured as limited partnerships under Dutch law. These partnerships consist of a **general partner** (a Yields Credit entity) and **limited partners** (investors). To ensure asset protection, a separate **foundation (stichting)** will hold the legal title to the fund’s assets and liabilities. Limited partnerships are structured as **tax-transparent**, with income and gains attributed directly to the investors, mirroring direct investment into the portfolio.

By combining blockchain technology with these legal structures, Yields Credit ensures secure, efficient, and compliant fund management while offering tailored solutions for a diverse investor base.

The assets of a Yields Credit fund are securely held either by a separate **foundation (stichting)**, which acts as a custodian, or by the fund itself. Yields Credit serves exclusively as the fund manager. To ensure investor protection, the fund assets are entirely separate from those of the fund manager. This means that, in the unlikely event that Yields Credit B.V. ceases operations, the funds remain unaffected and can be transitioned to a newly appointed manager. In the case of Yields Credit’s bankruptcy, the trustee (curator) has no legal claim over the fund’s assets. The fund agreements include a robust mechanism that facilitates the replacement of Yields Credit as the fund manager in such scenarios, ensuring uninterrupted management of the fund. Blockchain technology further enhances transparency and security, safeguarding investor assets under all circumstances.

If you have a complaint or are dissatisfied with Yields Credit or your investment product, you can submit your complaint in writing to [email protected] or to Yields Credit B.V., Geldersekade 101-F, 1011 EM Amsterdam. Your complaint will be handled with care and addressed as quickly as possible. Yields Credit is also registered with KiFID, the Dutch Institute for Financial Disputes. If needed, you can file a complaint with KiFID regarding Yields Credit. For more information, please visit www.kifid.nl.

Yields Credit is licensed as a fund manager by the **Dutch Authority for the Financial Markets (AFM)** under Article 2:65 of the Dutch Financial Markets Supervision Act. This license ensures that Yields Credit complies with the legal requirements to operate as a fund manager and is subject to both conduct supervision by the AFM and prudential supervision by the **Dutch Central Bank (DNB)**. Yields Credit is listed in the AFM register for investment funds.