Percent | Q3 2024 Performance: Steady Growth in a Dynamic Market

Q3 2024 Performance: Steady Growth in a Dynamic Market

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Percent

Percent continues to expand its reach and deliver solid returns amidst evolving economic conditions

Note: In May 2025, Percent rebranded the “Percent Underwriter” portal as Percent Manager to better reflect the broader capabilities of the platform and our users’ evolving roles. You may still see references to “Underwriters” below—these refer to what is now known as Managers.

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We are pleased to report that following a strong first half of 2024, Percent maintained its momentum and further solidified its position in the private credit space during Q3. This quarter saw continued growth across key metrics, with the addition of new underwriters, borrowers, and investors underscoring our marketplace’s ongoing expansion and increasing sophistication.

As of September 30, 2024, our Assets Under Management (AUM) reached a new all-time high of $244.1 million, representing a 13.3% increase from the previous quarter. Excluding our Blended Note products, which account for $48.1 million across Percent Blended Notes and Bespoke Blended Notes, our core AUM stood at $196.0 million – effectively doubling our position from the same period last year.

Q3 2024 By The Numbers:

These figures translate into tangible benefits for our valued investors:

Expanding Borrower and Underwriter Ecosystem

Q3 2024 welcomed six new borrowers and three new underwriters to the Percent platform, further diversifying our marketplace offerings:

New Borrowers

New Underwriters:

This diverse range of new participants spans multiple asset classes, geographies, and deal structures, providing Percent investors with an ever-expanding array of investment opportunities.

Investor Marketplace Performance: Consistent Returns in a Growing Market

In the past 12 months (Q3 2024 LTM), investors earned $27.3 million in interest, with an average return of 13.5% after losses and fees. This improvement from $23.1 million in H1 2024 LTM demonstrates our consistent ability to generate competitive returns for investors, even in a fluctuating market.

Transparency in Action: Active Workouts

Transparency is foundational to Percent. While workouts are an expected part of private credit, we proactively manage these situations to optimize investor recoveries. Currently, eight borrowers have deals in workout status, with comprehensive recovery plans underway.

We provide detailed reports and updates on our Current Workouts and Historical Deals Charged-Off and Recoveries pages, ensuring that you have full visibility into our recovery efforts and the performance of our underwriting partners.

Market Insights & What Lies Ahead

Adapting to a Transforming Landscape

As we look ahead, the private credit landscape is poised for significant transformation. Private credit continues to mature, becoming an increasingly critical part of investor portfolios while mirroring some aspects of later-stage markets. We expect to see heightened competition within the syndicated loan space as traditional bank markets begin to challenge private credit funds, ultimately benefiting issuers by providing more diverse funding options.

Market expectations for interest rate cuts may be overly optimistic. This situation could lead to attractive total yields if rates remain elevated. In a “higher-for-longer” base rate environment, we anticipate that private credit will continue to offer resilience, particularly in direct lending.  Private credit’s diverse landscape—including areas such as litigation finance, consumer lending, and commercial finance—will continue to provide substantial value to investors, especially when public credit spreads remain tight.

There’s robust investor appetite for private credit across various sub-sectors. This demand, coupled with available dry powder, should keep origination active, but maintaining strong underwriting standards remains paramount. As the private credit market continues to mature, we anticipate increased segmentation. Managers, particularly in the middle market, will likely seek to differentiate themselves from larger funds, leading to more specialized offerings.

Looking ahead, we believe private credit will continue to offer attractive opportunities for investors seeking yield and diversification. However, careful selection and robust due diligence will be more important than ever in navigating this evolving landscape.

Percent In the Spotlight

In Q3, our growth and innovation drew notable attention from the media. Here are some of the highlights: