Before you make any investments – including investing on Percent – it is important to research the opportunities to ensure they are appropriate for your risk tolerance and investment strategy.
To invest in a deal on Percent, navigate to the Deals page and click on any deal which is currently funding. After reviewing the deal details, you can request an investment and set your investment parameters: minimum rate (APY) and investment amount.
This video shows the complete step-by-step investment process:
Making an Investment
When you invest on Percent, you can set both a requested and a minimum investment amount. Your requested investment amount will be fulfilled in the allocation process; however, there may be times of excess demand where this will not be possible. In that case, your minimum investment request will be used to ensure an acceptable amount is allocated to you.
This process gives investors an increased likelihood of participation and lessens the risk of being completely closed out if the deal is oversubscribed as it reduces the need for investors to invest as soon as a deal is launched. In most cases, you can invest at any time until funding closes.
For significantly oversubscribed deals at all rates, the underwriter might decide to end the funding period earlier in order to protect the allocations of investors, which will already be significantly reduced. In the event a deal is a rollover transaction, we will generally notify current investors in advance that the deal’s funding period will be shortened. If the investors want to rollover their investment, they will know to request the rollover as soon as possible.
In times of excess demand, investors should be aware that setting a higher minimum APY or higher minimum investment amount could increase their chances of being excluded from a deal.
What about deals with variable rates?
Occasionally, some deals on the Percent platform will be marketed with variable rates. This has been the case for thematic Percent Blended Notes, which provide access to diversification across most of the sub-asset classes on the Percent platform, and for limited partner investing, where investors can participate in a managed private fund set up by a General Partner (GP). From time to time, a new deal on the platform can also carry a variable rate (rather than a pre-set APY range where investors can bid). In these instances, an investor can only submit bids for the requested investment amount and minimum investment amount.
What happens if the deal is oversubscribed or the minimum APY is not met?
Investors who select a minimum APY that is higher than the final APY set by the underwriter or borrower will have their investment request credited back to their Percent account(s) and will not participate in the new deal. However, if you wish to bid on an oversubscribed deal and are comfortable from a risk-tolerance perspective, you may decide to either bid, or adjust your prior bid, to a lower APY in the specified range during the syndication period to maximize your chances of participating in the deal. To make your decision, it is important to review the level of demand at each APY interval for that deal. This information is available on the Deal page.
The final deal size and APY depends not only on investor demand but also what parameters the borrower is able and willing to take. In the case of asset-backed deals, the borrower will also need to have sufficient collateral to support their offering.
If the deal must be downsized, during the allocation period Percent will adjust investors’ investment requests down according to their minimum and maximum requests.
How do I maximize my chance of getting into a deal?
For a greater chance of receiving an allocation in a deal, subject to your level of comfort and risk-tolerance, set a lower minimum APY and leave the minimum investment amount untouched. This will maximize your chances of receiving an allocation irrespective of the final size of the deal.
How do I adjust a current allocation?
To adjust your minimum APY or increase your investment size allocation request, simply log into your Percent account, navigate to the Deal page, and use the investment form to edit your existing investment request. If you wish to lower or cancel your investment request, please reach out to firstname.lastname@example.org.
Have thoughts or questions about Percent’s investment process? Please reach out to our Investor Relations team. We are always here to help.
Looking for more information on how to roll over an investment? The following piece can help you on your investment journey.