Q3 2026 Performance: More Borrowers, More Deals
In the third quarter, $100.2 million of principal came back to investors as deals were refinanced or matured and borrowers repaid. That is nearly 30% of the $346.9 million invested on the marketplace at the start of the quarter, returned in three months. Investors were paid another $12.0 million in interest, and the marketplace still grew: assets under management (AUM) reached $362.2 million as of September 30, 2026, up 12.15% from a year earlier.
Five new borrower programs funded their first deals on Percent in Q3, the book kept moving more heavily towards asset-based lending and lender finance, and no new charge-offs were recorded.
Q3 2026 By The Numbers
All metrics are for Q3 2026 (July 1 to September 30, 2026) unless otherwise noted. Population is all deals facilitated on Percent's marketplace.
$362.2M
End of period AUM
+12.15%
AUM growth, year over year
$114.3M
Funded on the marketplace, Q3
$100.2M
Principal returned, Q3
$12.0M
Interest paid to investors, Q3
$50.8M
Interest paid to investors, 12 months ended 9/30/26
$2B+
Syndicated since 2018
5
New borrower programs, Q3
0
Programs charged off, Q3
2
Programs entered workout status, Q3
Five New Borrowers on Percent
Five new borrower programs funded their first deals on Percent in Q3, all asset-based, which gives investors new lenders and new deals to choose from. Together they funded $13.7 million in the quarter:
ARV Structured Credit
$1.5M
3 deals
A specialty trade finance company structuring asset-backed lending transactions.
Clearfund
$6.0M
1 deal
Provides short-term working capital to businesses across a range of industries.
Litefund
$4.0M
1 deal
Provides short-term working capital to businesses across a range of industries.
Luca
$1.75M
2 deals
A Florida-based merchant cash advance originator serving Latino-owned small and mid-sized businesses.
True Advance Funding
$0.5M
1 deal
A New Jersey-based merchant cash advance provider for small and medium-sized businesses.
Borrower programs that funded their first deals on the Percent marketplace in Q3 2026 (July 1 to September 30, 2026), all asset-based. Amounts funded in Q3.
How Capital Comes Back
Investors on Percent choose individual deals, each with a stated term and a contractual maturity date, and principal returns as the deal amortizes or repays, when the borrower performs. In Q3, that returned $100.2 million to investors, money they could reinvest in new deals or take out.
In Q3, $100.2M came back to investors and $114.3M went into new deals
July 1 to September 30, 2026. Bars drawn to the same scale. AUM reached $362.2M at September 30, 2026.
Investors who want to sell before a deal matures can offer a position for sale on Percent's secondary market, live since February 2026, where another investor can buy it at a price the two agree on. A listing on the secondary market is an offer to sell or buy, not a guaranteed trade: a sale happens only if a buyer is found at a price the seller accepts.
What Investors Earned
Investors on Percent were paid $50.8 million in interest over the twelve months ended September 30, 2026, including $12.0 million in Q3 alone.
Over the same twelve months, the marketplace delivered an 11.80% net return, or 10.4% after losses and investor servicing fees. Net return is all interest paid to investors minus charge-offs, divided by average assets under management from October 1, 2025 through September 30, 2026. Past performance is not indicative of future results.
No charge-offs were recorded in any month from January through September 2026. The most recent were recorded in December 2025 and are detailed in our 2025 Year in Review.
Transparency in Action: Active Workouts
Workouts, the recovery process that begins when a borrower misses a scheduled payment or breaches a term of its agreement, are an expected part of private credit. We publish every one, by name, every quarter.
Since 2018, $2.19 billion has been syndicated on Percent's marketplace. 4.56% of it has defaulted at some point, and 0.85% has been charged off as realized losses. Of the defaulted balance not yet recovered or charged off, $73.1 million sits in the 20 borrower programs in active workout below; the remaining $1.0 million is in one program that has since resumed payments.
Two programs entered workout in Q3, Nera and Community Finance.
| Borrower | Underwriter | Deal type | Defaulted | Recovered | Interest PIK | Charged off | Outstanding |
|---|---|---|---|---|---|---|---|
| Asset-based notes | |||||||
| Zinobe | Percent | Sr. ABS | $1,542,662 | $680,188 | — | — | $862,474 |
| Sharestates (SHA2 & SHA4) | Sharestates | Sr. Mortgage | $645,000 | — | — | — | $645,000 |
| Sharestates (SHA3) | Sharestates | Sr. Mortgage | $248,000 | — | — | — | $248,000 |
| Juancho Te Presta | Aluna Partners | Sr. ABS | $697,818 | $240,532 | — | — | $457,286 |
| FAT Brands | Percent | Jr. ABS | $15,302,645 | — | — | — | $15,302,645 |
| Iron Horse Credit | Percent | Jr. ABS | $1,561,269 | — | — | — | $1,561,269 |
| Quartix | Percent | Jr. ABS | $2,600,000 | — | — | — | $2,600,000 |
| Fenchurch | Percent | Sr. ABS | $3,793,558 | — | — | — | $3,793,558 |
| Nera (new in Q3) | Percent | Sr. ABS | $20,343,073 | — | — | — | $20,343,073 |
| Community Finance (new in Q3) | Pi Capital | Sr. ABS | $217,555 | — | — | — | $217,343 |
| Corporate loans | |||||||
| Gas Pos | Quiq Capital | Sr. Corp. Loan | $2,421,395 | $421,718 | — | — | $1,999,677 |
| US ATM ASI | Quiq Capital | Sr. Corp. Loan | $3,643,757 | — | — | — | $3,643,757 |
| The Cloud | Aluna Partners | Sr. Corp. Loan | $2,000,000 | — | — | — | $2,000,000 |
| Littlemees USA | Aluna Partners | Sr. Corp. Loan | $2,576,174 | — | $1,125,831 | — | $3,702,005 |
| Rocketfy | Aluna Partners | Sr. Corp. Loan | $1,870,542 | — | — | — | $1,870,542 |
| FIT SRL | Aluna Partners | Sr. Corp. Loan | $2,302,365 | — | — | — | $2,302,365 |
| Noypitz Holdings | Milenia Ventures | Sr. Corp. Loan | $500,000 | $3,579 | — | — | $496,421 |
| LVL Technology Holdings | Aluna Partners | Sr. Corp. Loan | $4,000,000 | — | — | $3,000,000 | $1,000,000 |
| Carryt | Aluna Partners | Sr. Corp. Loan | $6,097,212 | — | — | — | $6,097,212 |
| Smartbeemo | Aluna Partners | Sr. Corp. Loan | $4,000,000 | — | — | — | $4,000,000 |
As of September 30, 2026. All figures in USD. Totals: $76,363,025 defaulted, $1,346,017 recovered, $1,125,831 interest PIK, $3,000,000 charged off, $73,142,627 outstanding. PIK is paid-in-kind: interest accrued and added to the balance rather than paid in cash. Senior (Sr.) notes are repaid ahead of junior (Jr.) notes from the same collateral.
Nera finances UK law firms against portfolios of litigation receivables. Its cash interest stopped when a UK regulator put both firms under supervisory review of their liquidity, solvency and funding arrangements, and Percent is negotiating a restructuring with outside counsel. Community Finance stopped originating consumer leases in January 2024 and repaid most of its principal under a 2024 forbearance. The remaining $217,343 went unpaid at its July 2026 maturity.
For more information on programs that have been either fully recovered or charged off please review our Historical Deals Charged-Off and Recoveries page. Default rate is defaulted principal divided by since-inception issuance. Recovery rate is the share of defaulted principal recovered divided by the defaulted principal. Net loss rate is realized charge-offs divided by since-inception issuance. As of September 30, 2026:
| Since inception | Issuance | Default rate | Recovery rate | Net loss rate |
|---|---|---|---|---|
| All deals | $2.19B | 4.56% | 7.08% | 0.85% |
| Asset-based offerings | $1.83B | 3.30% | 10.07% | 0.39% |
| Corporate loans | $357M | 11.03% | 2.51% | 3.17% |
All deals = asset-based offerings and corporate loans. The asset-based figures describe that subset only.
The full roster, with a status update for every program, is on our Current Workouts page, and every charge-off and recovery since 2018 is on our Historical Deals Charged-Off and Recoveries page. Both are updated with this report.
The Book Behind the Number
Percent's marketplace has syndicated $2 billion+ across all deals since 2018, including $1.83 billion+ in asset-based offerings as of September 30, 2026.
Over the twelve months ended September 30, 2026, asset-based AUM grew 22.50% while corporate loan AUM declined 16.01%, taking asset-based offerings from 72.4% to 79.1% of AUM. In an asset-based deal, investors lend against a defined pool of collateral, and the cash flows from that pool repay the note.
AUM mix by offering type
- Asset-based offerings
- Corporate loans
- LP participations
Share of AUM at September 30, 2025 and September 30, 2026. LP participations were 1.1% of AUM at both dates. Year-over-year change compares AUM at those two dates.
Q3 issuance totaled $114.3 million: $98.7 million in asset-based offerings (86.4%) and $15.6 million in corporate loans (13.6%).
Q3 2026 issuance by asset type
$114.3Mtotal Q3 issuance
Deals funded on the Percent marketplace, July 1 to September 30, 2026.
Q3 Macro Headlines
Three stories led the quarter's private credit coverage.
Investors in some private credit funds couldn't get all their money out. That story was about pooled funds that offer periodic withdrawals while holding loans that take years to repay. Across the 19 non-traded NAV BDCs that had reported Q3 tender results, redemption requests came to 11.5% of estimated tender offer NAV, and those funds fulfilled about 40% of them, according to Robert A. Stanger & Co., as reported by AltsWire. A marketplace note never offered a periodic withdrawal. Principal comes back when the borrower repays, and before maturity you can offer the position on our secondary market, where a sale depends on finding a buyer at a price you accept.
Fitch's private credit default rate hit a record. Fitch Ratings' trailing twelve-month default rate across a sample of about 1,300 U.S. private credit borrowers reached a record 6.3% at the end of August (Fitch Ratings, as reported by Private Equity Wire, September 15, 2026). Maturity extensions, payment deferrals and paid-in-kind switches were among the most common forms of default. Asset-based deals can fail differently: through collateral that underperforms, or collateral that isn't what it was said to be. The SEC's August charges against former Tricolor executives, over auto loans allegedly pledged to more than one lender, are an example of the second kind. No deal on the Percent marketplace was made to Tricolor or to First Brands, whose 2025 collapses investors still ask us about. Our own record is in the Active Workouts section above: since-inception defaults, recoveries and losses, and every program now in workout, by name.
Rates went up. The Federal Reserve raised its target range to 3.75% to 4.00% in September. Each new deal on the marketplace is priced in the market as it stands and sets its own terms, shown on its deal page.
The structure changes how these risks reach you. It doesn't remove them.
Third-party data describes other markets and populations, not Percent offerings or Percent's portfolio.
Percent in the Spotlight
Coverage during the quarter:
- Alternative Credit Investor: Exclusive: Percent partners with Trillium to launch compute credits marketplace (July 23, 2026)
- FF News: Percent and Trillium Technologies launch marketplace for compute credit investments (July 27)
- Alternatives Watch: Private credit platform Percent adds to leadership team, hits $2bn in volume (August 27)
- ABF Journal: Percent strengthens executive leadership as private credit platform scales asset management business (August 28)
- ABF Journal: Bina Shetty, Chief Commercial Officer, named to the 2026 Top Women in Specialty Finance (September 9)
- Alternatives Watch: Percent rolls out electronic trading venue PCTX (September 30)
- Inc.: Percent named to the 2026 Inc. 5000, No. 956 among America's fastest-growing private companies
Where Percent Is Headed
If you've invested on Percent since the early days, this section is for you.
Percent started in 2018 as a marketplace for accredited investors, and that marketplace is where Percent's deals reach accredited investors today. As of September 30, 2026, more than $2 billion had been syndicated on it, deal by deal, by investors who chose each one. What we're adding is meant to bring more borrowers and more deals to that marketplace.
More capital behind the lenders we finance. Percent Asset Management, our asset management business, is home to the Percent marketplace and to our work with institutional investors. Institutional capital lets Percent finance more specialty lenders, and keep financing the lenders investors already know as they grow.
More deals for you to choose from. More financing means more borrowers, and more borrowers means more deals listed on the marketplace for accredited investors. This quarter alone, five new borrower programs funded their first deals on Percent.
More institutional participants in the asset class you invest in. In September we launched PCTX, an electronic trading venue for institutional private credit, available only to approved users who are qualified purchasers or qualified institutional buyers. It is built to bring more institutional participants into asset-level private credit, the kind of lending marketplace investors have funded for years.
What isn't changing. You still choose every deal yourself. You still see each deal's terms before you commit. And every quarter, we'll keep publishing every figure and every workout by name.
Looking Forward
Q4 picks up where September left off, with new borrower programs coming onto the marketplace and more deal flow behind them. We'll report next quarter the way we reported this one, at percent.com/performance: every figure, and every workout by name.
New to Percent? Browse open offerings at percent.com, where standard single-deal offerings start as low as $500, and Investor Relations is always at support@percent.com if you'd like help making your first investment. The Percent newsletter arrives every Saturday with new deals and market commentary.