Percent gives investors access to private credit investments, a multi-trillion-dollar asset class. Learn all about this asset class and what it means for your portfolio.
What is private credit?
Private credit is an asset class of privately negotiated loans and debt financing from non-bank lenders. This includes small business and consumer loans, venture debt, and other forms of private debt. Small businesses, startups, and individuals seek private credit when they cannot access public credit markets.
The Appeal of Private Credit
Investors often consider private credit as a complement to traditional options like stocks and bonds. Here's why:
Short Term Investments
Deals on Percent typically have a maturity of around nine months.
Yield Potential
Private credit can offer different yield potentials compared to traditional bonds, often associated with the distinct risk profiles of non-bank lending. It’s important to understand that these yields reflect the unique risks and characteristics of private credit compared to more traditional fixed-income investments.
Largely Uncorrelated
Major changes in the stock market generally do not directly affect private credit investments, leading many investors to use it for portfolio diversification.
Private credit investments are complex investments only available to accredited investors and are subject to default risk.
Why Percent?
At Percent, we strive to make private credit investments more accessible, backed by thorough due diligence on borrower operations, financials, underwriting practices (of third-party underwriters), and loan portfolios. Our goal is to design structures that thoughtfully address the risks involved in a marketplace that’s accessible to more accredited investors than ever before.
Invest in private credit
Consider the role of private credit in your diversified portfolio. It offers a different investment experience with its own set of features and potential returns, distinct from traditional avenues. To further explore the variety of opportunities within private credit, learn about the different asset classes available on Percent, each offering unique purposes and structures tailored to diverse investment strategies.
