Private credit used to be reserved for institutions and the ultra-wealthy. Percent is changing that. By democratizing access to private credit, we’re opening doors for accredited investors to explore potential high-yield opportunities that were once out of reach.
Our platform combines transparency with a rigorous vetting process, so investors can feel confident in the quality of every deal listed. For a more detailed look at our vetting process, visit our deep-dive article. At Percent, we do the heavy lifting behind the scenes to ensure every investment opportunity meets the highest standards of diligence and trustworthiness.
Percent’s Multi-Layered Vetting Process
Sourcing Excellence: We source deals through direct borrower engagements, co-investments with private credit managers, and partnerships with respected placement agents. This network provides investors with access to a diverse, high-quality deal pipeline.
The Initial Filter: Each deal undergoes strict screening based on key factors like deal size, interest rates, collateral quality, and financial health. With less than 10% of deals advancing beyond this stage, only the most promising opportunities move forward.
Deep-Dive Due Diligence
Once a deal makes it through the initial filter, it’s time for deeper scrutiny. Here’s a summary of our key due diligence steps:
- Document and Background Review: We examine financial statements, legal documents, and key personnel backgrounds to identify any red flags such as bankruptcies or legal issues.
- Operational and Reference Checks: We conduct conversations with borrower management and connect with past investors to gauge operational strength and gather insights on past performance.
- Data and Performance Analysis: For asset-based deals, we analyze historical loan performance to ensure solid underwriting and manageable risk.
The final step in our vetting process involves presenting the deal to our internal listing committee. This group of experts reviews each opportunity, challenging assumptions and ensuring all risk factors are thoroughly considered. Only after gaining approval from this committee can a deal be listed on our platform.
Ongoing Monitoring: Supporting the Security of Your Investment
Our commitment to investor protection doesn’t end when a deal launches. We maintain oversight throughout the lifecycle of each investment to mitigate risks and ensure transparency for investors:
- Performance Reports: We provide regular updates on each deal’s performance.
- Collateral Verification: Independent third parties verify collateral for asset-based deals.
- Ongoing Communication: We maintain close contact with borrowers and underwriters to manage emerging risks.
This ongoing monitoring helps manage risk and maintain transparency, ensuring investors stay informed about their investments.
What This Means for Investors
Broker-Dealer Status: Percent’s SEC-regulated broker-dealer status sets us apart from other platforms by holding us to higher regulatory standards. This means we are committed to protecting your interests, ensuring all deals meet strict requirements for transparency, risk, and performance. Our broker-dealer status aligns our interests with yours—when you succeed, we succeed—building a partnership based on trust.
Navigate Private Credit with Confidence: Our comprehensive vetting process minimizes risk for investors, helping you make informed decisions. When you invest with Percent, you’re investing in opportunities that have undergone rigorous due diligence and are backed by strong oversight.
Diversification: Percent makes it simple to diversify your portfolio with a wide range of investment opportunities, spanning different asset types, sectors, and geographies. For those looking for a one-stop solution, the Percent Blended Note offers instant diversification with a single investment.
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At Percent, transparency, due diligence, and investor protection drive our mission to democratize private credit. We provide accredited investors with access to high-quality opportunities previously out of reach. Join us to explore how Percent is transforming private credit investing.