Percent Blended Notes, Explained
Private credit is lending to businesses by non-bank lenders. The terms are negotiated privately rather than set in a public market, and the loans are usually held until they are repaid instead of being traded. Investors who funded a loan earn interest as it is repaid, or lose money if it is not. Percent has been bringing those deals to accredited investors since 2018.
There are three ways to invest here, and they suit different people.
Pick your own deals. Browse individual offerings on the Percent marketplace and decide which ones to fund and how much to put in each. You make every call; no adviser manages the portfolio for you.
Invest in a Percent Blended Note. One investment spreads your money across a group of deals, chosen automatically against a strategy set in advance.
Open a Separately Managed Account. Percent Advisors manages a portfolio built around your account.
This article is about the middle one. It is built for investors who want a spread of private credit deals without researching and funding each one.
What is a Percent Blended Note?
A Percent Blended Note (a PBN) is a single investment that holds a group of deals from the Percent marketplace. Percent Advisors LLC, an SEC-registered investment adviser, manages it.
Each note has a strategy fixed before it opens: what kinds of deals it can hold. One note might focus on asset-based lending, another on shorter loans, another on U.S. borrowers only. Those rules are set at the note level, so everyone invested in the same note owns exposure to the same strategy. You are not building a portfolio; you are buying one.
The technical name for the structure is a revolving participation note. "Revolving" is the part that matters to you: as the underlying loans repay, that money can go back to work in new deals that fit the same rules, without you doing anything.
What you own is the note itself, not the individual loans inside it. Your payments come from the note, on the terms its offering documents set.
The offering documents for each note spell out its rules in full.
Explore the private credit asset classes available through Percent
How it works, step by step
- The note sets its rules. Its offering documents define what kinds of deals it can hold.
- Your money goes to work. The system spreads it across deals that fit those rules; you do not choose them.
- Borrowers make payments. What the note collects depends on how those loans perform and on the note's terms.
- Repaid money can be reinvested. For part of the note's life, principal that comes back can go into new deals that fit the same rules.
The point is to keep one consistent strategy running for the life of the note. It is not built around your personal goals or restrictions. That is what a Separately Managed Account is for.
A range of strategies, and new notes on a regular basis
Percent does not run a single Blended Note. It issues them across a range of strategies that differ along a few lines:
- Where the borrowers are (global, or U.S. only).
- Where the note sits in the capital stack (senior, or a broader mandate).
- How long the underlying loans run (shorter-duration or medium-term).
- What kind of lending (asset-based, with some notes targeting higher yield).
Recent notes have included Global Asset-Based, Global Asset Based Senior Only, Global Asset Based Short Only, US Only Asset Based, and Global Asset Based Medium Term. Those are examples of what has been offered, not a fixed menu. Percent retires strategies and adds new ones as demand changes, so the lineup shifts over time.
A new Blended Note has come out every month for the past year, each with its own strategy, minimum, and terms. Each one is open only during its funding window, so there can be gaps between notes when nothing is taking new money.
Log in to see what is open right now, and read that note's offering documents before you invest.
How diversification works in a PBN
Put everything into one loan and that borrower decides your outcome. That concentration is one of the main risks in private credit, and it is the one a Blended Note is built to manage.
Rather than resting on a single position, a PBN spreads your money across a number of deals, so no one borrower carries the whole result. It keeps doing that as loans repay, within limits the note's offering documents set on how much can go to any one place, and without you sizing each position yourself.
What spreading your money cannot do is remove risk. It does not guarantee a profit or protect against loss. Borrowers can run into trouble at the same time, for the same reasons: a weak economy hits many of them at once. Every underlying loan carries real risk of not being repaid, and you may lose some or all of your money.
Understand the 36-month term
Percent Blended Notes run 36 months, and the three years are not all the same. A note typically spends its first stretch reinvesting: as underlying loans repay, that money goes back into new deals rather than out to you. After that the note begins to amortize, paying down principal alongside interest until it reaches maturity. The most recent note set that switch at 24 months, leaving roughly 12 months of amortization, but the split is set per note and its offering documents govern.
That timing can move earlier. Notes carry rapid-amortization triggers (for example too much of the note sitting in cash, or too much of it in defaulted deals, each for a sustained period), and if one trips, the reinvestment period ends ahead of schedule.
Plan on staying in for the full three years. This is not a savings account and not a stock you can sell whenever you like, and there is no public market for it. When and how much you get paid depends on the note's terms and on how the underlying loans perform. So two practical questions before you invest: will you need this money inside three years, and could you absorb losing some or all of it?
An accessible entry point
Minimums depend on which note you choose. They currently run $1,000, $2,500, and $5,000, so you can hold a spread of private credit deals without committing the kind of capital these investments have traditionally required.
That is the practical appeal for someone starting out: you can hold a spread of private credit deals without writing a large check.
Availability and terms change. Log in to see which Blended Notes are open, then read that note's offering documents for its minimum, strategy, fees, expenses, conflicts, and risks.
Priority allocation on oversubscribed offerings
Some deals on Percent attract more money than they need. When that happens, Blended Notes and Separately Managed Accounts (both managed by Percent Advisors) are filled first. So if a deal fits your note's rules and gets oversubscribed, the note takes its allocation ahead of individual investors rather than queuing alongside them.
Read the offering documents before you invest, including what they say about allocation, conflicts of interest, and how Percent Advisors is paid.
Is a Percent Blended Note right for you?
A Blended Note tends to suit you if you want a spread of private credit deals from one investment, would rather follow a set strategy than pick deals yourself, like the idea of repaid money going back to work automatically, and can leave the money alone for three years.
It is probably not for you if you want to approve every loan you are in, might need the money sooner, or want a portfolio built around your own goals.
Blended Note, picking your own, or an SMA?
The three differ in who decides, which Percent company offers them, and the minimums, fees, access to your money, and risks that come with each.
| How deals get picked | Who offers it | What you do | |
|---|---|---|---|
| Percent Blended Note | Automatically, from deals that fit the note's rules. | Percent Advisors LLC | Choose the note. |
| Picking your own | You review and choose each one. | Percent Securities, LLC | Decide every deal, how much, and where repaid money goes. No adviser manages the account. |
| Separately Managed Account | Percent Advisors manages a portfolio built for your account. | Percent Advisors LLC | Work with the advisory team to set it up. |
A Blended Note is the packaged option. Picking your own gives you control over every position. An SMA gives you an advisory relationship and a portfolio shaped around your account. All three are private, illiquid investments that carry real risk, including losing some or all of your money, and none of them is right for everyone. Read the materials for whichever you are considering.
Learn how Percent Separately Managed Accounts work
Review the note before you invest
“Blended Note” describes how the investment is put together, not a promise about what it will earn. Each note has its own strategy, its own set of deals it can hold, and its own terms, fees, expenses, conflicts, and risks.
Read the offering documents in full before you invest. Look especially at:
- what deals the note can hold, and how it picks and prioritizes them;
- how long it runs and when it pays;
- fees and expenses, and how they are calculated;
- limits on how much can go to any one deal or borrower;
- conflicts of interest, including allocation priority;
- the risks: borrowers defaulting, not being able to get your money out, and the loss of some or all of it; and
- what could delay or reduce your payments.
Frequently asked questions
What is a Percent Blended Note?
One investment that holds a group of private credit deals from the Percent marketplace, managed by Percent Advisors LLC. Deals are selected automatically against rules the note sets before it opens.
Do I choose what it invests in?
No. You choose the note; the note chooses the deals, from those that fit its rules.
Is it built around my goals?
No. Everyone in the same note gets the same strategy. If you want a portfolio shaped around your own account, that is a Separately Managed Account.
Are there different kinds?
Yes. Notes differ by where the borrowers are, where the note sits in the capital stack, how long the loans run, and what kind of lending is involved. Past notes have included Global Asset-Based, Global Asset Based Senior Only, and US Only Asset Based, among others. These are examples, not a standing menu. Log in to see what is open now.
What does "revolving" mean?
As underlying loans repay, that money can go into new deals that fit the same rules, for part of the note's life. You do not pick the new ones.
How long is my money tied up?
36 months. Check the note's offering documents for exactly when it pays and when it matures.
What is the minimum?
It depends on the note: currently $1,000, $2,500, or $5,000. The offering documents state the minimum for each.
What are the fees?
They vary by note, and they reduce what you earn. The offering documents lay out the fees, how they are calculated, and any other expenses.
Does spreading my money make it safer?
It reduces how much any one borrower can hurt you. It does not remove risk or prevent losses. Borrowers can struggle at the same time, and you may lose some or all of your money.
Can I cash out early?
Plan on holding to the end of the term. This is a private, illiquid investment with no public market, and payment timing depends on the note's terms and how the underlying loans perform.
Who can invest in a Percent Blended Note?
Percent Blended Notes are intended for accredited investors who meet the eligibility requirements in the applicable offering documents.
Review current Percent Blended Notes
Log in or create an account to see the Blended Notes currently available and review their investment criteria, minimums, terms, fees, and risks.