Willow Wealth, formerly known as Yieldstreet, faces new defaults on real estate projects in Houston and Nashville, totaling $41 million in losses. This adds to the $89 million in marine loan wipeouts and $78 million losses previously disclosed, totaling at least $208 million lost by investors.

The rebranding of Willow Wealth comes as the company removes a decade of historical performance data from public view. Critics, including Boston University’s Mark Williams, express concerns about the company’s attempt to distance itself from its poor performance by removing statistics.

Willow Wealth’s customers are grappling with losses from investments in real estate projects, some of which are now in default. The collapse of these funds highlights the risks of private market investments, which lack standardized disclosures and leave investors reliant on fund managers.

The company, now headed by CEO Mitch Caplan, is shifting towards selling private market funds from Wall Street giants like Goldman Sachs and Carlyle Group. Fees for their new products can reach up to 6.7% annually, making Willow Wealth one of the most expensive options for retail investors.

Investors are facing difficult news as more real estate projects tied to Willow Wealth are failing, resulting in substantial losses. The company attributes these failures to the Federal Reserve’s interest rate hike cycle in 2022, making it harder to repay floating-rate debt.

The losses for Willow Wealth investors are expected to increase, with more projects facing default and restructuring. Critics argue that the company’s promise to democratize access to high-return investments has instead trapped investors in high-risk ventures, leading to significant financial losses.

Read more at CNBC: Yieldstreet investors rack up more losses as firm rebrands to Willow Wealth