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Form Customer Relationship Summary (CRS)

Effective September 2023

Member of FINRA

Percent Securities, LLC
145 East 57th Street,
New York, NY 10022

Percent Securities, LLC is a registered broker/dealer with the Securities and Exchange Commission (“SEC”), Financial Regulatory Authority (“FINRA”) and Securities Investor Protection Corporation (“SIPC”).

Brokerage and investment advisory services and fees differ and it is important for an investor to understand the difference.  Free and simple tools to research firms and financial professionals are available at www.Investor.gov/CRS , which also provides educational materials about broker-dealers, investment advisers and investing.

What investment services and advice can you provide me?

Percent Securities, LLC offers brokerage services through Percent Technologies’ online platform (“Platform”). The firm brokers private debt placements to accredited investors. We act as placement agent for companies, issuers and borrowers seeking to raise private debt capital from investors. Securities transactions on the Platform are self-directed. However, we also make certain offerings available to investors off the platform as well. We offer private debt placements based on investment profile and suitability requirements. The guidance we provide to our customers is not legal advice, and we encourage investors seeking to invest in a private debt placement to seek outside guidance regarding legal and tax consequences.

In order for individual investors to invest in a private debt placement offered by our firm, investors must be accredited investors. We require all individual investors to complete an investor questionnaire. Securities offerings are limited to private placements. For additional information, please see the Form CRS disclosure available at https://brokercheck.finra.org/firm/summary/314782

Ask your financial professional:

    • Given my financial situation, should I choose a brokerage service? Why or why not?

    • How will you choose investments to recommend to me?

    • What is your relevant experience, including your licenses, education and other qualifications?  What do these qualifications mean?

What fees will I pay?

Percent Securities, LLC may charge investors service fees directly and it may also charge the companies, issuers or borrowers raising capital a placement agent fee that varies on each transaction. These service fees and placement agent fees are disclosed in each transaction’s respective private placement memorandum. Both of these fees result in either direct or indirect costs to investors as many companies, issuers and borrowers consider their all-in cost of capital when making financing decisions.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying and any other costs you are incurring. For additional information, please see the Form CRS disclosure available at FINRA BrokerCheck.

Ask your financial professional:

Help me understand how these fees and costs might affect my investments.  If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

Given the nature of the firm’s business, registered representatives do not recommend specific investments or strategies to investors. Therefore, the specific suitability requirements outlined in FINRA Rule 2111 do not apply. However, it is the firm’s policy not to introduce any potential investor/buyer to an issuer/offeror unless the registered representative has reason to believe the investor/buyer is qualified and the potential investment or purchase would meet the investor/buyer’s mandate or previous investment patterns. If the designated principal in their review of correspondence or customer files finds that the recommendation has been made, they will seek additional information from the registered representative as needed to complete a suitability review of the recommended investment or strategy.

Should Percent Securities LLC provide an investor with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the offerings, we provide you.

Here are some examples to help you understand what this means:

    • A control person of Percent Securities, LLC may act as the manager of a company, issuer or borrower, and may receive related compensation.

    • A control person of Percent Securities, LLC may also be employed by the Platform and may receive related compensation.

    • A control person of Percent Securities, LLC may also be affiliated with Percent Advisors, LLC and may receive compensation related to any products sold to investors managed by Percent Advisors, LLC. Any commission payable to Percent Securities LLC provides a strong economic incentive for the registered representatives and its affiliates. Investors should be cognizant of the fact that the interests of Percent Securities LLC and their affiliates are not aligned with those of the investors.

    • In certain instances, Percent Securities, LLC may also share fees with third-party referral sources, such as other broker dealers or a foreign finder.

Ask your financial professional:

How might your conflicts of interest affect me and how will you address them?

For additional information, please see the Form CRS disclosure available at FINRA BrokerCheck.

How do your financial professionals make money?

We pay our registered representatives an annual salary as well as a discretionary bonus based on their individual job performance and the performance of Percent Securities LLC and its affiliates.

Neither Percent securities, LLC nor its financial professionals have any reportable legal or disciplinary events. Visit Investor.gov/CRS for a free and simple search tool to research Percent securities, LLC and our financial professionals.

Ask your financial professional:

As a financial professional, do you have any disciplinary history? For what type of conduct?

For additional information, please see the Form CRS disclosure available at FINRA BrokerCheck.

Ask your financial professional:

    • Who is my primary contact person?

    • Is he or she a representative of an investment adviser or broker-dealer?

    • Who can I talk to if I have concerns about how this person is treating me?

You would contact the Chief Compliance Officer. The current Chief Compliance Officer is Richard Egan. He is available at 516-668-8121 (EST) or richard.egan@percent.com.