Asset-based lender finance for the Underserved Middle Market.

Percent Asset Management is the brand for Percent's investment-advisory business, comprised of two affiliated advisers: Percent Advisors LLC, an SEC-registered investment adviser, and Percent Fund Advisors LLC, an exempt reporting adviser. It focuses on the infrastructure and investment discipline required to serve lower-middle-market non-bank lenders and specialty finance companies. The investment thesis centers on senior-secured, asset-based facilities typically supported by diversified pools of short-duration receivables and other cash-flowing assets.

Business focus

Market

• Traditional and Fintech Non-bank lenders

Facilities

• Senior-secured asset-based finance

Collateral

• Diversified pools of receivables

Operating platform

• Private-credit infrastructure since 2018

Who we are

Percent's institutional asset-management business.

Percent Asset Management brings Percent's experience in sourcing, underwriting, structuring, administering, and monitoring private credit to institutional asset management. Its business focus and investment philosophy are built around specialized lender finance: understanding the non-bank lender, the assets it finances, the facility structure, and the information required to monitor performance over time.

How the market works

Lender finance, not direct lending to end borrowers.

Specialty non-bank lenders originate and service financing for businesses and consumers. In an asset-based lender-finance transaction, capital is provided at the lender level through a facility supported by pools of the receivables and other cash-flowing assets the lender originates or services. The financing exposure is therefore evaluated at the facility and collateral-pool level—not as a direct loan to an individual underlying business or consumer, or as the purchase of one individual loan at a time.

• Underlying businesses and consumers
  Receive financing from a specialty non-bank lender
  →

• Specialty non-bank lender
  Originates and services the financing
  →

• Diversified collateral pool
  Receivables and other cash-flowing assets support the facility
  →

• Senior-secured asset-based facility
  Lender, collateral, controls, and structure evaluated together

• Merchant cash advances

• Small-business loans

• Equipment receivables

• Consumer receivables

This is a simplified educational overview. Legal instruments and transaction structures vary. Senior-secured describes a transaction's structure; it does not eliminate risk of loss.

The Underserved Middle Market

A business built around smaller facilities.

Percent focuses on asset-based facilities below $25 million—an area where smaller transaction sizes can fall outside the operating models of larger managers and traditional banks. These transactions still require disciplined sourcing, diligence, documentation, administration, and monitoring. Percent's operating model is built to support that work at a smaller scale. We call this segment the Underserved Middle Market. The term refers to how the segment is served; it is not a claim about the credit quality of every transaction.

• Where larger managers concentrate
  Larger facilities — operating models built for size
• Where Percent focuses
  Facilities below $25M

How Percent works

From lender-finance opportunity to ongoing oversight.

• 2018
  Private-credit platform operating since

Specialized lender-finance opportunities move through a defined process that considers the lender, collateral, proposed structure, and controls together.

• Source
  Opportunities enter through Percent's marketplace, data, and relationships with specialty non-bank lenders.
• Assess and diligence
  Teams review the lender, portfolio data, repayment history, collections, financials, and proposed facility.
• Structure and review
  Proposed terms, collateral controls, documentation, and reporting requirements are evaluated before funding.
• Monitor
  After funding, Percent reviews lender reporting and collateral performance throughout the transaction lifecycle.

Percent entities

A regulated institutional framework.

Percent Asset Management is comprised of two affiliated investment advisers. Percent Advisors LLC is an SEC-registered investment adviser. Percent Fund Advisors LLC is an exempt reporting adviser. Each adviser is separately responsible for the accounts and funds it advises, and each is subject to different regulatory requirements based on its registration status. Percent Securities, LLC is an affiliated FINRA-registered broker-dealer.

Contact Percent Asset Management.

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This page provides general information about Percent, its business, and its investment philosophy. It is not an offer to sell or a solicitation of an offer to buy any security. Any offer, if made, will be made only through the applicable confidential offering documents to persons who satisfy the relevant eligibility requirements.

Percent Advisors LLC is an SEC-registered investment adviser. Percent Fund Advisors LLC is an affiliated investment adviser. Percent Securities, LLC is an affiliated FINRA-registered broker-dealer.