Private credit investing,
Percent gives investors exclusive access to the $800 billion world of private credit investments. Learn all about this exciting asset class and what it means for your portfolio.
What is private credit?
Private credit is an asset class of privately negotiated loans and numerous other forms of debt financing from non-bank lenders. They can include (but are not limited to) small business loans, venture debt, consumer loans, invoice factoring, and various other forms of private debt.
Small and early-stage businesses along with individuals seek this form of financing when public credit markets are not accessible. Private credit lenders and investors provide borrowers much-needed capital in exchange for both the return of the capital borrowed plus interest over a set period of time.
Why private credit?
Investors find private credit investments to be attractive alternatives or additions to traditional investments - stocks, bonds, and beyond
A private credit deal can reach maturity in as little as one month, the principal and interest returning to the investor upon successful completion.
Due to the higher risk assumed by non-bank lending, investors are privy to more attractive interest rates than investments like traditional bonds.
Major changes in the stock market do not directly affect private credit investments, leading many investors to choose it as a hedge against losses in their portfolio.
Private credit investments were previously facilitated using inefficient and opaque transactions made available to only a select few institutional investors. Though these investors had exclusive access to this investment type, they did not have the ability to monitor the performance outside of what the lender provided.
Percent makes private credit investments available to any and all accredited investors using our leading investment platform. We provide a wealth of asset performance data to help investors track their investment's performance after a deal closes.
Private credit investors notably benefit from Percent's best-in-class due diligence on loan originators and their assets. Our team carefully reviews everything including an originator’s operations, financials, underwriting practices and loan portfolio, designing our own structures to reduce the risks transferred to investors.