Cadre

Short description: New York-based technology company

RealCadre LLC

Type| Private
Industry| Financial technology
Real estate
Founded| 2014; 12 years ago (2014) in New York City , New York, United States
Founder| Ryan Williams
Headquarters|

New York City , New York

United States

Key people

| Ryan Williams, CEO, Founder & Executive Chairman

Dan Rosenbloom, Chief Investment Officer

Michael Fascitelli, Investment Committee Co-Chair

Number of employees

| Over 100
Website| cadre.com

Cadre is a New York–based financial technology company that provides individuals and institutions direct access to institutional-quality real estate investment properties, including commercial properties.[1] The business and financial press describe it as a platform that "makes the real estate market more like the stock market" by allowing investors to select the individual transactions in which they participate, while investing a smaller amount than would be required to fully fund a transaction.[1] For example, 12 institutional investors (such as family offices and endowments) participated in a $60 million office building purchase.[2] The firm was named to Forbes "FinTech50" for 7 years in a row starting in 2016.[3][4][5] In 2019, Cadre was the cover story of the Forbes "FinTech 50" issue.[6][7] In 2018, a partnership with Goldman Sachs was announced through which Goldman Sachs' private wealth clients committed at least $250 million (USD) real estate investments through Cadre.[8][9] In 2020, Cadre announced its "Direct Access" fund intended to include smaller investors with a $400 million target raise.[10] The company also offers a managed portfolio service and a real estate secondary market, as well as a cash holdings account called "Cadre Cash".[11] The company has announced plans to address racial injustice in the United States by investing at least 10% of its Direct Access fund investments with minority-owned operators and increasing its cash held in black-owned banks.[10]

In 2023, Cadre launched Cadre Direct Access Fund II, a value-add fund aiming to raise $500mm to invest in opportunistic assets resulting from the capital markets dislocation. Most of its investors in the fund were expected to be institutional in nature.[12] In 2023, Cadre merged with Yieldstreet, a global alternative investment platform. Cadre CEO Ryan Williams will continue to serve as the CEO of Cadre, which will operate independently.[13] Prior to merger,Cadre received venture capital investment from several sources.[14][15]

## Contents

* 1 History
* 1.1 Yieldstreet merger
* 2 Platform
* 3 References
* 4 External links

## History

Founder and then-CEO Ryan Williams started the company with Thrive Capital and General Catalyst, which together invested $18 million in a 2015 fundraising round.[16] Startup capital included a $250 million line of credit from the family of George Soros.[17][18] That round also included a $250 million backstop liquidity commitment from an unnamed family office.[1] Vornado CEO Michael Fascitelli also invested in this round and joined the board. Jared Kushner advised the firm for approximately 18 months.[1]

Williams was named one of Forbes ' "30 Under 30" for 2018.[19][20][21] Former Vornado Realty Trust CEO Michael D. Fascitelli leads the investment committee.[22] Other team members were hired from Silicon Valley firms,[1][23] such as the former head of engineering from Mint.com.[23][24]

In 2016, the firm raised another $50 million, which included Michael Fascitelli joining Cadre's investment committee.[25][26] In 2017, it was named an "Inc. New York start-up to watch",[27] to Equities.com's Pioneer 250,[28] and to Fast Company's "5 FinTech startups to watch".[23] The firm raised an additional $65 million in 2017 in a round led by Andreessen Horowitz.[29] A 2018 deal permits private wealth clients of Goldman Sachs to invest through the Cadre platform.[8]

In early 2018, it was reported that the company planned to expand to include residential real estate loans by investing in loans issued by others.[30]

In 2018 the company announced the "Cadre Secondary Market," which permits users to sell positions after a one-year holding period. It also announced the "Cadre Managed Portfolio" service, which allows users to create a diversified account with a $250,000 minimum.[31]

In late 2018, the company launched an opportunity zone fund based on tax changes established in the Tax Cuts and Jobs Act of 2017, which were designed to encourage investment in low-income areas. Investors who invest in qualified projects and meet holding-period requirements face reduced capital gains taxes and may defer other capital gains taxes.[32]

In 2019, CEO Ryan Williams said that Cadre's ability to disrupt the industry was because "real estate is a Jurassic industry. It's antiquated."[33] In late 2019 it was reported the Cadre had returned more than $100 million to investors.[34]

In 2020, Cadre announced that it hired Allen Smith, former CEO of Four Seasons Hotels and Resorts, as president. Smith previously worked as the CEO of Prudential Real Estate Investors.[35][18]

Also in 2020, CEO Ryan Williams announced plans for Cadre to increase its support for equality. The company made Juneteenth a company holiday and Williams, who shared his personal ancestry story including former enslaved persons, also published a plan to help increase economic opportunity for diverse communities through "formal mentorship programs to provide hands-on guidance, and ... comprehensive skills-training programs that help people of all ages get a start in careers that will allow them to succeed in a fast-changing economy."[36]

In October 2020, Cadre added the "Cadre Cash" platform, allowing investors to earn a cash reward on qualifying cash balances held in the platform.[37]

In early 2021, Cadre announced a new $400 million "Direct Access" fund targeting individual investors, financial institutions and wealth advisors, with a minimum investment of $50,000, which lowers the implied per-property allocation to $5,000 or less. The fund will permit investors to seek liquidity after a mandatory hold period through the company's secondary market, where investors can post interests in sale to potential buyers. Cadre also announced a plan for at least 10% of all investments through its Direct Access fund to be made with minority-owned operators, and at least 5% of cash to be held in black-owned banks.[10]

In 2022, Jared Kaplan was hired as CEO; founder Ryan Williams became Executive Chairman and Co-Chairman of Cadre's Global Investment Committee.[38] Kaplan is the former CEO of OppFi and the founder of Insureon.[38]

Since this time, Ryan Williams has returned to the CEO role and led the launch of multiple new investment products, including Cadre Direct Access Fund II.[12]

### Yieldstreet merger

In late 2023, Cadre closed a merger with Yieldstreet, a company that provides a platform for global alternative investments. Both companies will continue to operate as separate divisions, with Ryan Williams continuing to helm Cadre.[13]

Fortune Magazine described the merger as creating conditions for a future IPO.[13] At the time of the merger, Cadre and Yieldstreet together had produced morethan $3.1 billion in returns for clients, based on a total investment value of $9.7 billion across 500,000 clients. Willaims stated, "Together with Yieldstreet, we look forward to helping expand institutional distribution and broadening its offering of institutional-caliber products and innovative solutions that reduce friction for investors in private markets."[39]

## Platform

Traditional real estate investment funds vest all decision-making with a paid manager; individual participants have no ability to select transactions in which to participate. By contrast, Cadre permits investors to choose what investments to make on a building or project level. Cadre curates investment opportunities, and uses an electronic platform to make these qualified opportunities available to investors. Individual investors can then buy a stake in any project.[1] The company performs diligence using its data analysis software and data analysis team.[3] For sellers, the company claims higher speed and lower fees as advantages.[1] CEO Williams claims that real estate "builds multi-generational wealth", and, "Cadre provides access to more members of the global economy with the opportunity to build wealth".[40] Secondary sales and managed portfolios are also supported. In the future, the firm intends to use its data analytics platform to allow investment in opaque, illiquid asset classes beyond real estate (such as "energy, natural resources, oil, infrastructure, or anything that's historically been privately held or inaccessible").[3][41] The platform also offers a cash reward on qualifying balances in the "Cadre Cash" program.[37]

## References

1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "Google and Facebook employees are flocking to a startup that's raised ~$70 million to shake up the real estate world" (in en). http://www.businessinsider.com/what-is-cadre-and-how-to-invest-in-its-real-estate-deals-2016-6.
2. ↑ "Trump's Son-in-Law Hasn't Given Up Real Estate For Politics Yet". 8 July 2016. https://www.bloomberg.com/news/articles/2016-07-08/trump-s-son-in-law-hasn-t-given-up-real-estate-for-politics-yet.
3. ↑ 3.0 3.1 3.2 "Cadre CEO Says Data Processes, Services Give Them an Edge". https://www.bloomberg.com/news/videos/2017-03-21/cadre-ceo-says-data-processes-give-them-an-edge-video.
4. ↑ Novack, Janet. "The Forbes Fintech 50 For 2016". https://www.forbes.com/sites/janetnovack/2016/11/07/the-forbes-fintech-50-for-2016/#cf398981b100.
5. ↑ "The Future of Real Estate: Fintech 50 2020". https://www.forbes.com/sites/samanthasharf/2020/02/12/the-future-of-real-estate-fintech-50-2020/#40be4e355e6a.
6. ↑ Communications, Forbes Corporate. "Forbes Releases Fourth Annual Fintech 50 List: The Future of Your Money" (in en). https://www.forbes.com/sites/forbespr/2019/02/04/forbes-releases-fourth-annual-fintech-50-list-the-future-of-your-money/.
7. ↑ Vardi, Nathan. "Ryan Williams, 30, Started A Revolutionary $800M Fintech. But Can He Escape His Kushner-Trump Connection?" (in en). https://www.forbes.com/sites/nathanvardi/2019/01/31/ryan-williams-30-started-a-revolutionary-800m-fintech-but-can-he-escape-his-kushner-trump-connection/.
8. ↑ 8.0 8.1 "Goldman Commits $250 Million in Client Money to Real Estate Startup Cadre". Bloomberg.com. 2018-01-10. https://www.bloomberg.com/news/articles/2018-01-10/goldman-commits-250-million-in-client-money-to-real-estate-firm.
9. ↑ "Real estate investing startup Cadre partners with Goldman Sachs". Reuters. Jan 10, 2018. https://www.reuters.com/article/us-cadre-goldman-sachs/real-estate-investing-startup-cadre-partners-with-goldman-sachs-idUSKBN1EZ1PJ.
10. ↑ 10.0 10.1 10.2 Gara, Antoine. "Fintech Cadre Launches $400M Fund Targeting Individual Investors And Will Back Underrepresented Real Estate Operators" (in en). https://www.forbes.com/sites/antoinegara/2021/02/02/fintech-cadre-launches-new-400-million-fund-for-individual-investors-and-plans-to-back-minority-real-estate-operators/.
11. ↑ "The Startup Trying to Disrupt Private Equity Firms | Institutional Investor". https://www.institutionalinvestor.com/article/b1bd8ckb2qzk0v/The-Startup-Trying-to-Disrupt-Private-Equity-Firms.
12. ↑ 12.0 12.1 Benson, Peter (2023-03-21). "Cadre launches second value-add fund" (in en-US). https://www.perenews.com/cadre-launches-second-value-add-fund/.
13. ↑ 13.0 13.1 13.2 "Exclusive: Yieldstreet to acquire real estate tech startup Cadre" (in en). https://fortune.com/2023/11/30/exclusive-yieldstreet-to-acquire-cadre-real-estate-tech-startup-investment-platform/.
14. ↑ Drucker, Jesse (5 November 2017). "Kremlin Cash Behind Billionaire's Twitter and Facebook Investments; Leaked files show that a state-controlled bank in Moscow helped to fuel Yuri Milner's ascent in Silicon Valley, where the Russia investigation has put tech companies under scrutiny". https://www.nytimes.com/2017/11/05/world/yuri-milner-facebook-twitter-russia.html.
15. ↑ Four Corners; International Consortium of Investigative Journalists (5 November 2017). "Leaked documents link Trump's Commerce Secretary to Putin cronies". Australian Broadcasting Corporation. http://www.abc.net.au/news/2017-11-06/leaked-documents-link-trumps-commerce-secretary-to-russia/9075622.
16. ↑ Cutler, Kim-Mai. "Cadre Raises $18.3M From Thrive, General Catalyst To Build Software For Big Commercial Real Estate". https://techcrunch.com/2015/03/24/cadre/.
17. ↑ "Trump adviser Kushner's undisclosed partners include Goldman and Soros". https://www.marketwatch.com/story/trump-adviser-kushners-undisclosed-partners-include-goldman-and-soros-2017-05-03.
18. ↑ 18.0 18.1 "Jared Kushner divests stake in Cadre". 28 February 2020. https://therealdeal.com/2020/02/28/jared-kushner-divests-stake-in-cadre/.
19. ↑ "28 black founders and investors making an impact in tech - PitchBook News". http://pitchbook.com/news/articles/28-black-founders-and-investors-making-an-impact-in-tech.
20. ↑ "Ryan Williams - Meet Crain's New York Business Class of 2017 40 Under 40". http://www.crainsnewyork.com/40under40/2017/Williams.
21. ↑ Communications, Forbes Corporate. "Forbes Releases 2018 Edition of the 30 Under 30 List" (in en). Forbes. https://www.forbes.com/sites/forbespr/2017/11/14/forbes-releases-2018-edition-of-the-30-under-30-list/.
22. ↑ Weiss, Lois (4 January 2017). "Ex-Vornado president takes on larger role at Kushner's Cadre". https://nypost.com/2017/01/03/ex-vornado-president-takes-on-larger-role-at-kushners-cadre/.
23. ↑ 23.0 23.1 23.2 "5 Fintech Startups To Watch In 2017 | Fast Company". 26 December 2016. https://www.fastcompany.com/3066666/startup-report/5-fintech-startups-to-watch-in-2017.
24. ↑ "Cadre Expands Executive Team, Appointing Sam Mischner as Chief Commercial Officer" (in en-US). https://finance.yahoo.com/news/cadre-expands-executive-team-appointing-130000787.html.
25. ↑ Weiss, Lois (26 January 2016). "Real estate startup Cadre raises whopping $50M". https://nypost.com/2016/01/26/real-estate-startup-cadre-raises-whopping-50m/.
26. ↑ Kolodny, Lora (26 January 2016). "Cadre Scores $50M for Professional Real-Estate Investment". https://www.wsj.com/articles/DJFVW00120160126ec1ql5dxy.
27. ↑ "Mattresses, Makeup, and Meal Kits: Top 10 NYC Startups to Watch in 2017" (in en). 25 January 2017. http://www.inc.com/zoe-henry/10-new-york-startups-to-watch-in-2017.html.
28. ↑ "Westward Ho". https://www.equities.com/news/westward-ho.
29. ↑ "Online Real Estate Marketplace Cadre Raises $65 Million led by Andreessen Horowitz". 10 June 2017. https://www.crowdfundinsider.com/2017/06/101754-online-real-estate-marketplace-cadre-raises-65-million-led-andreessen-horowitz/.
30. ↑ "Kushner brothers' Cadre plans to launch mortgage business" (in en-US). The Real Deal New York. 2018-03-08. https://therealdeal.com/2018/03/08/kushner-brothers-cadre-plans-to-launch-mortgage-business/.
31. ↑ "How Modern FinTech Disrupts the Real Estate Industry". https://www.equities.com/news/how-modern-fintech-disrupts-the-real-estate-industry.
32. ↑ "Cadre | Opportunity Zones | Jared Kushner Cadre". 30 November 2018. https://therealdeal.com/2018/11/30/kushner-brothers-backed-cadre-looks-to-cash-in-on-opportunity-zones/.
33. ↑ Matt Egan (20 May 2019). "Meet the 31-year-old African American CEO aiming to revolutionize real estate investing". https://www.cnn.com/2019/05/20/investing/ryan-williams-cadre-real-estate/index.html.
34. ↑ "Cadre returned more than $100m to platform investors". https://finance.yahoo.com/video/cadre-returned-more-100m-platform-163231081.html.
35. ↑ Vardi, Nathan. "Real Estate Tech Startup Cadre Hires Former Four Seasons CEO As President" (in en). https://www.forbes.com/sites/nathanvardi/2020/01/29/real-estate-tech-startup-cadre-hires-former-four-seasons-ceo-as-president/.
36. ↑ "Juneteenth and beyond: Corporate leaders must pave a path to economic justice". https://fortune.com/2020/06/19/juneteenth-economic-justice-cadre-ceo/.
37. ↑ 37.0 37.1 "Cadre CEO on launch of 'cash' product". https://finance.yahoo.com/video/cadre-ceo-launch-cash-product-160754591.html.
38. ↑ 38.0 38.1 Jackson, Ted. "Ryan Williams Steps Down as Cadre CEO; Jared Kaplan to Succeed Him" (in en-US). https://www.connectcre.com/stories/ryan-williams-steps-down-as-cadre-ceo-jared-kaplan-to-succeed-him/.
39. ↑ Muhn, Julie (1 December 2023). "YieldStreet Pads Alternative Investment Offerings with Cadre Acquisition". https://finovate.com/yieldstreet-pads-alternative-investment-offerings-with-cadre-acquisition/.
40. ↑ Sharf, Samantha. "How To Value Boston's Faneuil Hall And Other Questions Fintech Could Answer". https://www.forbes.com/sites/samanthasharf/2016/10/17/how-to-value-bostons-faneuil-hall-and-other-questions-fintech-could-answer/#516f5a5c30fb.
41. ↑ "How this 50-person startup is planning to completely transform the real estate industry". builtinnyc.com. 2017-04-05. http://www.builtinnyc.com/2017/04/05/cadre-disrupting-real-estate-nyc.

## External links

* Official Site

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