This is the historical default rate of all investments on Percent as of January 31, 2024. Out of the 77 past and present borrowers on the Percent platform, eight have seen offerings with defaults. At the same time, 98.03% of all principal invested with Percent has either been successfully returned to investors with interest on or before the offering’s maturity or is presently outstanding and performing.
How is Percent’s historical default rate calculated?
At Percent, we calculate our historical default rate as a ratio of:
a) Missed principal payments of notes that did not make full and timely repayment of principal as scheduled (subject to 5 business days of grace period), without giving effect to the realization of any subsequent recoveries; and
b) The total principal amount of all notes syndicated and closed on the Percent platform.
No Investment is Without Risk
Percent’s private credit investments, by definition, are high-risk investments—as are most (if not all) alternative investments. Though we aim to prevent defaults, they can still occur and leave investors with partial or total loss of principal and/or interest.
- In the case of previous defaults, and as will be the case of all future defaults, Percent has and will explore all options for maximum recovery of principal and interest. Like returns with any investment, success in recovery is never guaranteed.
- With that in mind, Percent’s high yields and short durations are why investors add our private credit offerings to their diversified portfolios. Investors often find Percent’s private credit offerings and due diligence tools appealing. The combination of high yields, short durations, readily available diligence materials, and ongoing transaction surveillance are some of the reasons why investors continue to choose Percent to compliment their diversified portfolio.
Increased Diversification with Percent Blended Notes
Instead of investing in a single private credit investment, the Percent Blended Note gives investors diversified exposure to many of Percent’s existing platform offerings.
- This allows investors to diversify across different investments and potentially reduce losses incurred by a default—all in a single investment.
Start investing in private credit today with Percent Blended Notes.