Transparency is core to Percent’s mission of making the private credit markets more accessible to investors.

Nowhere is that more evident than the ability to easily discover and compare investment opportunities. Within the Percent marketplace, investors can monitor investment performance and constantly see new offerings. To facilitate informed decision-making, Percent offers two ways to compare transactions across terms and critical deal characteristics.

• Pre-set comparables. Every offering includes a link to access offering comparables. These are selected by Percent and/or the transaction’s underwriter based on type of offering, asset-class, geography. Comparables may include prior notes from the same borrower.

• Customized comparables table. Within Offerings, select the ‘table’ view icon in the upper right corner. Use the filters to define the universe you want to view, then select up to four individual transactions to compare. Click ‘Compare’ to see the results side-by-side.

Since comparison tools were introduced to the Percent marketplace in October 2021, the available data has been continuously expanded as new options become available on the platform. 

What characteristics can be compared?

The type of transaction dictates the available information. For example, the data points available for asset-backed financing deals can vary from corporate or venture loan data given the differences in deal structure.

Percent provides the following detailed information, as available based on transaction type:

1. Offering Overview – Key dates and other high-level metrics related to the offerings, such as Close Date, Maturity Date, Term, and APY.
2. Credit Enhancements – Detailed breakdown of relevant deal features and characteristics related to the structure that may offer additional support for the transaction to pay its principal and interest in a timely manner. Examples include overcollateralization*, cash reserve, and cash sweep frequency.
3. Asset Details and Modeling Assumptions* – information about the underlying asset(s) securing the transaction, including various cash flow modeling assumptions. This includes asset type, historical default rate, and maximum single obligor exposure.
4. Corporate Overview – Data related to the business operations of the borrower, such as country, number of employees, and equity raised to date.

The data is regularly reviewed and updated by borrowers, underwriters and/or Percent, particularly in advance of any new offering by the borrower. In the event a borrower or underwriter prefers not to share this information publicly, it will either be noted in the table or the investor will need to sign a non-disclosure agreement to access it.

*only applicable or relevant for asset-backed financing transactions. 

Can Percent’s comparisons help investors quantify risk?

There are a number of different data points in Percent’s comparison table that are useful for investors seeking to assess risk. In addition to the credit enhancements noted above, investors can see if funds are held in segregated accounts, whether collateral has been independently verified, and the number of obligors (and single largest obligor exposure) for any given note.

In many of the asset based transactions, the assets underlying a note’s performance are analyzed on a regular basis to make sure they are not underperforming, confirm they are appropriately contributing to the note’s performance, and that they meet required collateral/overcollateralization thresholds.

Finally, comparison tables are complemented by Percent’s detailed borrower surveillance reports, critical update reports, and collateral verification reports. 

Why is Percent able to offer deal comparison?

Private credit markets have historically lacked standardization, presenting a significant stumbling block to growth. That’s why it was one of the first challenges tackled by Percent. To create an efficient marketplace for investors, borrowers, and underwriters, we created an unprecedented level of standardization, across deal documentation and terms. Every borrower and underwriter on Percent is asked for the same information although the data they provide can vary based on the specific transaction.

That standardization not only gives investors access to detailed offering documentation and deal terms, but it also allows investors to make an ‘apples to apples’ comparison of different deals. You may choose to compare different offerings from the same borrower, transactions within the same sector, or transactions with similar timeframes. Filtering capabilities simplify the process of creating your own custom comparison, with the confidence that the data you are comparing means the same thing across transactions.

That’s a level of transparency into private credit transactions that no one else offers. Try our deal comparison tool today. Once you login to your portfolio, click the Offerings tab in the top navigation bar. Then switch the icon in the top right hand corner to the four horizontal lines to begin comparing deals.