The partnership will enable Pipe to identify ongoing liquid management opportunities and offer competitive yield at lower risk
YieldX, a fintech company reimagining fixed income, today announced it will work with Pipe to manage its yield-targeted portfolio. Pipe-the fastest fintech to reach a $2 billion dollar valuation less than a year after its public launch in June 2020-has built the world’s first trading platform for recurring revenue, enabling companies with recurring revenue streams to access up-front capital, instantly.
Pipe will leverage YieldX’s Income Portfolio as a Service (InPaaS®) solution to identify ongoing liquidity management opportunities. InPaaS® offers the benefit of achieving competitive yield targets at lower risk and expense than other funds and model portfolios in the marketplace, and has historically outperformed benchmark ETFs.
To reduce the proclivity of investors to take unnecessary risks in pursuit of yield, YieldX’s mission is to empower a greater number of investors with more seamless access to yield at lower risk. Bringing fixed-income portfolio solutions to Pipe represents a huge step forward in realizing that mission.
“We are thrilled about the opportunity to partner with Pipe,” said Adam Green, CEO of YieldX. “Not only is their platform established and well-respected, but substantial synergies exist between their goals and the potential our solutions can unlock for them. We look forward to growing together and unleashing the power of capital with InPaas®.”
InPaas® overhauls “set it and forget it” allocations to fixed-income funds. With real-time execution, rebalancing alerts and suggestions, InPaaS® makes managing a yield target a dynamic experience. Portfolios account for diversification and are monitored and optimized in real-time.
“As a business built around increasing cash flow, we understand better than anyone the importance of proper liquidity management for scaling companies,” said Pipe co-CEO Harry Hurst. “Working with YieldX presents a unique opportunity for us to create custom portfolios offering competitive yields while mitigating risk.”
YieldX investment and quant teams curate the 650 ETF and closed-end funds in the fixed income universe, totaling $1.25 trillion, and identify an attractive subset for portfolio construction. Portfolios are customized for investors with target yield ranges from 2% – 9%.
Born from a need to modernize the current antiquated fixed-income investment process, YieldX debuted in 2020 under the vision of two capital markets and technology experts: CEO and co-founder Adam Green and President and Chief Innovation Officer Steve Gross. The disruptive fintech firm recently closed its Series A funding round alongside a powerful strategic partnership with Envestnet.