When Percent started in 2018, we offered a single investment product: private credit investments in ultimately hundreds of notes led by dozens of borrowers. Since then, thousands of investors have allocated more than $1 billion across 500+ notes (as of January 2024).
We now offer a different investment product: the Percent Blended Note.
What is a Blended Note?
The Percent Blended Note offers investors diversified exposure across Percent’s existing platform deals in one simple investment. Instead of investing in individual notes one at a time, investors can now get exposure to multiple notes through just one transaction.
The PBN consists of an automatically managed portfolio of notes from eligible borrowing programs on the Percent platform. Eligibility criteria ensures only notes with strong reporting, performance history, and other standard deal structures are selected. The detailed eligibility criteria for each Percent Blended Note is available on the deal page.
Unlike individual investments which require periodic rollovers, the PBN allows hands-off investing. Once invested, your capital automatically gains priority access to new private credit deals meeting the eligibility criteria. Uninvested cash also earns interest while awaiting deployment.
How are deals selected?
An algorithm and proprietary criteria, designed by Percent to maximize returns and diversification, determine which notes are selected for the PBN.
Key factors include:
- Eligibility criteria filtering for notes upholding reporting, performance, and other deal structure standards
- Concentration limits ensuring no single note makes up more than a set percentage of the PBN’s portfolio
- An algorithmic allocation process objectively selects new investments daily based on return, duration, overcollateraliztion, and other factors
The current portfolio of underlying assets are disclosed on each PBN’s deal page under the Holdings tab.
What is the payment structure?
For the first 12 months, the PBN pays variable monthly interest based on interest earned from underlying notes and cash management.
After 12 months the PBN begins amortizing principal alongside ongoing variable interest payments as underlying deals repay.
How can I invest in a Percent Blended Note?
Percent Blended Notes available for investment are listed on the Deals page once you sign in.