NEW YORK--(BUSINESS WIRE)--Percent, the platform that has created the modern private credit marketplace, closed out 2023 with a record-setting performance. Notably, the platform crossed the $1 billion threshold in marketplace issuance across more than 550 deals (as of January 9, 2024) since the company’s founding in 2018.
Percent’s remarkable performance capped off a banner year for the company. In 2023, Percent raised $30M in a Series B round that helped fuel the company’s growth and mission. Additionally, Percent became a registered broker-dealer, which has allowed the organization to enhance their customer experience significantly, streamline investment processes, and introduce new investment vehicles, such as their first Limited Partnership offering. The company also partnered with a multibillion-dollar alternative credit manager, establishing a $75 million warehouse facility to empower even more non-bank lenders and offer investors unique opportunities to invest alongside a true institutional investor.
“Despite market instability, the past year was a defining one for us. The crisis in March served as a stark reminder of the financial system’s fragility, yet it reignited the need for the very solutions Percent provides. As traditional lending channels froze, Percent stood resilient, offering stability and flexibility to a market in need,” said Nelson Chu, Founder and CEO of Percent. “Our diverse array of private credit opportunities, coupled with unwavering transparency and investor support, positions Percent as a trusted partner in navigating the winds of 2024.”
Key performance metrics for the year included:
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In 2023 alone, Percent’s volume reached $240 million over 161 deals, and $147 million in assets under management (AUM).
- Total AUM saw a 35.7% increase YOY from 2022 to 2023, and has increased an average of 41.4% yearly since 2021.
- Interest earnings distributed to investors saw a 37.6% increase YOY from 2022 to 2023, with an average yearly increase of 46.6% since 2021.
- Percent welcomed 40 new borrowers, and the number of first time deals by new borrowers on Percent grew by 263.6% from 2022 to 2023.
- Percent welcomed 11 new underwriters, who syndicated $51.8 million across 45 deals.
- From 2022 to 2023, Percent saw a 77% decrease in losses, from $3.5 million in 2022 to $850,000 in 2023, indicating the platform's strength in mitigating risks for their investors.
- Percent diversified its offerings, spanning across asset classes, borrowers, geographies and sectors, giving investors an even richer, deeper, and more personalized variety of opportunities.
- The year culminated in a flurry of activity with a record-breaking 17 inaugural offerings launched in the fourth quarter alone, driving total outstanding investments to $147.7 million - a 35% annual increase.
Most recently, Percent unveiled its 2024 Private Credit Outlook report, which details how several tailwinds pushed private credit into the spotlight in 2023, and the asset class now stands at $1.3 trillion in AUM, representing an estimated 25% of “dry powder” available for investment. The report indicates continued growth for the asset class with key trends to expect amongst investors, borrowers, and underwriters, and helps establish that private credit continues to be a top choice for alternative financing.
About Percent
Percent has created the modern credit marketplace, empowering investors, borrowers, and underwriters with innovative technology to increase the speed and velocity of transactions at a fraction of the cost. The company’s core infrastructure delivers public market efficiencies to the multi-trillion-dollar analog private credit market by powering the sourcing, structuring, syndication, surveillance and servicing of private credit transactions from beginning to end. Founded in 2018, Percent’s platform is becoming the market standard for asset-backed and corporate lending, powering over $1.5 billion in total transaction volume across retail and institutional markets. For additional information, please visit www.percent.com and follow the company on Facebook, Instagram, LinkedIn and Twitter.
