Percent helps accredited investors add private credit investments to their portfolio. These investments typically range from 8% to 20% APY, and often feature durations from a few months to a few years. Investors can see their principal investment returned with interest as the underlying note is repaid.
How Percent Investors Accrue Interest: Companies can seek private credit funding from non-bank-lenders when lending opportunities from traditional lenders like banks are not easily available to them, or not available at attractive terms. In many instances, these alternative lenders provide companies with the capital they need, albeit at higher interest rates due to the higher perceived risk as borrowers.
- Percent investors invest in notes backed by loan or receivable portfolios of these non-bank lenders, receiving interest in return over the duration or at the completion of a deal (depending on deal terms). When and if the underlying borrowers pay back these non-bank lenders over the course of their borrowing term, a portion of the interest or fees in that payment is allocated to Percent investors.
- As of June 2022, Percent investors earned over $15.7 million in interest from Percent deals since our launch in 2018.
Generating Largely Uncorrelated Yield: Investors often use Percent to generate yield and diversify their holdings. Interest accrued in a Percent investment can offset losses incurred in other markets or complement gains.
- As Percent investments are often largely uncorrelated from traditional equities markets, a bear market may not necessarily impact the performance of a Percent investment.
- In particularly volatile periods in equities markets, Percent investments, by virtue of being non-equity investments, can be used to diversify against such volatility, accruing capital in one’s portfolio at a time where less diversified portfolios or those overweight in equities continue to see losses.
What are the Risks? As with all investments, Percent is not without risks. By definition, we offer high risk investments, as an investor can lose some or all of their principal investment should a deal on Percent default.
- While often uncorrelated to equity markets’ performance, the correlation between Percent’s origination partners’ performance and that of the broader equity markets is not zero.
- In particular, the origination partners raising capital on our platforms may be young companies. As a result they may not be immune to the broader market trends, such as supply chain disruptions due to COVID or geopolitical conflicts.
With $605 million in investments across over 315+ deals, along with a wealth of data provided to investors through our due diligence and surveillance reports on our partners and their assets, thousands have trusted Percent to diversify their portfolios with high-yield, short-term private credit investments.
Get Up to $500: First time investors can get up to $500 after making their first investment. Start diversifying your portfolio with exclusive private credit investments, only with Percent.