In another first for the industry, Percent is excited to release its latest feature ushering in an unprecedented level of transparency to the private credit markets. We are now the only alternative investment platform on the market delivering real time performance data on each and every underlying asset in our structured note offerings. This is fully aligned with our mission of providing above and beyond disclosure and access to what has traditionally been one of the most opaque and tough to source asset classes for investors.

Current and prospective accredited investors on our platform will now have the ability to monitor how the underlying assets supporting our offerings are performing on a daily basis. A clear and concise high level performance summary is now available alongside granular details with respect to each individual underlying loan.

How to Interpret the Data

Summary

• Outstanding Amount: The sum of the Current Balance of each loan in the borrower’s portfolio. Especially for underlying assets that are not loans and in which ‘interest’ is incorporated into the outstanding balance, it may be possible (or even typical) for outstanding balance to exceed an asset’s Original Balance
• Total Number of Assets: The count of active assets in the portfolio
• Top Five Concentration %: Balance of the five largest assets as a percentage of Outstanding Amount
• Average Outstanding Amount: Outstanding Amount divided by the Total Number of Assets
• Weighted Average APY: The average annualized yield on the underlying assets weighted by the assets’ outstanding amount
• Weighted Average Term: The average Original Term on the underlying assets, weighted by their outstanding amount

Asset Detail

• Identifier: Asset identifier assigned by the borrower, to the extent there is one
• Date Funded: Date the asset was originated; assets are organized chronologically
• Original Balance: Each asset’s original balance, the amount owed by the underlying obligor
• Current Balance:Current balance of each asset in the borrower’s portfolio. Especially for underlying assets that are not loans and in which ‘interest’ is incorporated into the outstanding balance, it may be possible (or even typical) for an asset’s Current Balance to exceed its Original Balance
• APY: Annualized yield on the asset. For non-loan assets that do not have an explicit interest rate (like factored invoices) this may be calculated based on other characteristics of the asset such as the discount at which it was acquired and its Original Term
• Original Term: Term on the asset, starting from the origination date and ending on its maturity or due date
• Location: Geographic descriptor of the underlying obligor’s location (country, state/province, city, etc.)
• Payment Frequency: Frequency of scheduled payments by underlying obligors (e.g. monthly, weekly, etc.). A “bullet” payment frequency means a balloon repayment at maturity
• Last Payment Date: The most recent date the underlying asset obligor made a payment on the asset
• Status: An asset-by-asset performance status provided by the borrower (e.g. healthy/performing, payment issues/late, charged off, etc.)

The Benefits of Real-Time Data for Private Credit

For prospective investors in an upcoming note offering

Use this unparalleled transparency to your advantage by assessing whether to make an investment based on current and historical portfolio composition and performance of a note series, borrower or asset class. A few things that you should keep in mind as you look at the past performance of the notes from that borrower. Complement the Real Time Performance data with our Surveillance Reports.

Disclaimer: Past performance is never a guarantee of future results. Our intention is to provide as much disclosure as possible and lead with transparency so that prospective investors can make well informed decisions based on trusted data

For investors in an existing note offering

Leverage the frequency of the real time data to gauge how your investment is performing. Based on your satisfaction with current performance, you’ll be able to make much more informed decisions going forward. A few things to keep in mind as you look at the current performance of a note you are already invested in:

• As you consider participating in a future rollover opportunity with the same borrower and note series, you can assess whether the level of return being offered is commensurate with the underlying asset portfolio and performance to date.
• You may consider exploring other asset classes by taking a view that the expected performance and underlying exposure is an interesting hedging opportunity. For example, if you begin to witness a slow-down in underlying payments in your note from a consumer-facing borrower during an economic downturn, you may consider participating in a note program from a borrower facing better-credit counterparties.
• Lastly, one of the biggest hindrances of investing in alternatives has been the inability to efficiently and frequently obtain valuations. For the first time in history, current investors in Percent structured notes will be able to actively compare the value of their private credit holdings with other marked-to-market investments within a broader diversified portfolio. The implications of leading with transparency are profound and we believe price discovery can be ascertained outside of prevailing trades in a secondary market.

A New Paradigm for Private Credit

This is one of several core features we believe will create a transparent and efficient market for private credit. Giving investors like you the comfort that comes with visibility into how your investments are performing is a crucial first step towards making this new reality possible.