Percent

Yes. Percent sells its notes through Percent Securities, LLC, an SEC-registered broker-dealer and FINRA member since August 2023 (SEC CIK 0001863789) that has filed three years of annual reports on Form X-17A-5, which is more regulatory infrastructure than most direct-deal private credit marketplaces carry. AltStreet's capture of the full deal book shows $2.02 billion funded across 1,125 deals since December 2018 (October 6, 2026), 12 charge-offs (0.90% self-reported, 1.10% by dollars completed on AltStreet's recalculation) and a 7.47% lifetime distress rate by count once the 72 deals in workout or reperforming at the October 2026 capture are included. In a FINRA Acceptance, Waiver and Consent dated June 9, 2026, Percent Securities was censured and fined $60,000, without admitting or denying the findings, for filing offering documents late on 372 private placements by issuers owned and controlled by its parent; the rule is procedural and the fine small. The legitimacy question is settled; the diligence questions are the 10% Investor Service Fee taken from every interest payment and the distress rate on deals advertising coupons above 20%.

One regulatory action is on record. FINRA published an Acceptance, Waiver and Consent dated June 9, 2026 (case 2024080953801) in which Percent Securities, LLC was censured and fined $60,000. Without admitting or denying the findings, the firm consented to findings that, as placement agent, it filed offering documents with FINRA late for 372 private placements issued by companies owned and controlled by its parent, between at least three and 164 days after first giving them to prospective investors. It is the first enforcement action against Percent that AltStreet has recorded. The rule is procedural; what the findings document is the structure, in which a captive broker-dealer places notes issued by entities under the same parent.

Percent is an SEC-registered broker-dealer (Percent Securities, LLC, FINRA member since August 2023) operating a private credit marketplace where accredited investors fund short-duration loans (6-36 months) to non-bank borrowers at headline coupon rates of 10-20%. Each deal is structured as a dedicated Delaware Series LLC under Cadence Group Platform, LLC. Investors purchase unsecured notes ($500 minimum per deal) issued by the SPV; the SPV purchases participation interests in the borrower's underlying loans or receivables. Returns flow monthly as interest payments, less Percent's 10% Investor Service Fee. Platform has facilitated $2.02B across 1,125 deals since December 2018 (AltStreet capture of October 6, 2026).

Historical weighted-average coupon is 14.76% per Percent's own track record disclosure (as of 2026-03-31); outstanding deals carry a 16.95% WA coupon. Headline range is typically 10-20% annual yield. The Investor Service Fee of 10% reduces gross coupon by ~10% — so a 16% headline coupon nets to roughly 14.4% pre-tax. For high-bracket investors in high-tax states, the effective after-tax return falls further: illustratively, a California investor at a 54.1% combined marginal rate would see approximately 6.6% after-tax on that 14.4%. Coupon income is taxed as ordinary interest, not capital gains or qualified dividends.

Percent self-reports a 0.90% charge-off rate and 3.70% default rate (30+ days past due methodology) as of 2026-03-31. AltStreet's independent recalculation using authenticated investor-api captures of all 1,125 deals (October 2026) finds: 1.10% $-weighted charge-off rate on completed deals (12 charged off, $18.3M); 7.47% lifetime distress rate by count including 72 workouts and reperforming deals, up from 49 at the May 2026 capture and 70 in August, with no new realized charge-off in between. Both methodologies agree the realized losses are low. Distress concentrates dramatically by financing type (Corporate Loans 25.35% vs Asset-Based 3.79% at the May cross-cut), by coupon band (2.1% under 14% vs 28% at 20%+), and by underwriter (Aluna Partners 31.58% vs Percent self-underwritten 4.42%).

Percent launched its Secondary Market in February 2026 (announced 2/26/2026, 2/27/2026, 3/2/2026) — an order book with bid/ask depth charts allowing investors to indicate interest in buying or selling positions in eligible deals before maturity. Pricing is expressed as a percentage of par value with visibility into supply and demand depth. The feature is structurally legitimate (distinct from informal note-sale features most marketplaces offer) but enabled on only approximately 4.3% of deals at AltStreet's May 2026 capture. Order-book depth and execution statistics are not publicly disclosed. Best practice: underwrite every deal as hold-to-maturity; treat secondary market access as optional upside, not a primary exit path.

Per Percent's terms and conditions, tax forms are furnished by January 31st of the year following the calendar year to which the tax form relates (or the first business day after January 31st if it falls on a weekend or holiday). Tax forms remain available through October 15th. Default form for marketplace deals is 1099-INT (1,052 of 1,067 deals at the May 2026 ingest); a smaller number of fund and SMA structures issue K-1 (48 deals) with potentially different timing depending on the underlying fund's close cycle. For the typical marketplace investor, expect straightforward 1099-INT delivery by end of January — no extension complexity.

Percent retains 10% of every interest payment to investors as the Investor Service Fee — deducted before the investor receives the coupon. This fee is verified uniform across all 575 deals where AltStreet could extract it from the deal body text, and Percent's general disclosure confirms the same rate across the platform. The fee is fully disclosed in each deal's Additional Details / Security Details section. Modeling: net coupon = headline coupon × 0.90. Investors modeling at gross coupon overstate net returns by approximately 10%. This is a fixed servicing fee, not a performance fee — it applies regardless of whether the deal performs at target or under-performs to par.

The decision turns on available capital, time availability, and credit-analysis confidence. Choose marketplace if: you have $25K-$100K and are willing to actively evaluate new offerings, monitor deal-level performance, and reinvest principal as deals repay every 6-36 months. Choose SMA if: you have $1M+, prefer institutional-grade professional management, and are comfortable paying 1% annual on committed capital to delegate deal selection and monitoring to Percent's investment team. SMAs typically construct 20-50 underlying positions with diversification across asset types and underwriters. RIAs and family offices favor SMA structure for client portfolios; sophisticated individual investors often start with marketplace and graduate to SMA as capital grows.

Percent Securities, LLC is SEC-registered, FINRA member (since August 2023, SEC CIK 0001863789), and has filed annual reports on Form X-17A-5 for three consecutive fiscal years (FY2023 filed 2024-02-29, FY2024 filed 2025-03-17 with amendment, FY2025 filed 2026-02-27). This provides a materially stronger compliance framework than unregistered competitors: FINRA suitability oversight, AML program per Rule 3310, Business Continuity Plan per Rule 4370, Form CRS and Reg BI disclosures, FINRA arbitration for dispute resolution, and SIPC membership per Percent's disclosures (with standard limitations — SIPC does not protect against credit defaults on the underlying private debt). Most private credit marketplace competitors operate as unregistered platforms — they may offer cheaper deal economics but lack this regulatory framework.

Asset-Based deals are backed by underlying collateral — consumer loans, SMB receivables, merchant cash advances, equipment leases, discounted receivables, litigation finance. The collateral provides structural recovery in default. AltStreet's May 2026 cross-cut found these show 3.79% lifetime distress. Corporate Loan deals are senior or junior debt to private companies, often unsecured or supported only by general corporate credit. These showed 25.35% distress in the same cross-cut — 6.7x the Asset-Based rate. Fund deals (or Blended Notes) provide diversified exposure across multiple underlying assets through a single structure, with typical $5,000 minimums and 36-month terms targeting 11-13% net returns. Asset allocation: $1.62B / 870 deals are Asset-Based, $329M+ are Corporate Loans, with a smaller Fund slice (per Percent's own track record disclosure).

The two methodologies measure different things. Percent's 3.70% default rate uses a 30+ days past due (DPD) methodology — counting any deal that has missed payments by more than 30 days. Their 0.90% charge-off rate counts only deals where Percent has formally written off the loan as uncollectable. AltStreet's 7.47% lifetime distress rate combines the distress categories from the investor-api state field: Charged Off (realized loss, 12 deals) and Work-out/Restructured (active restructuring, outcome unresolved, 70 deals as of August 2026). The 1.10% AltStreet charge-off rate uses $-weighted methodology on completed deals only. Both methodologies are internally consistent; they measure different windows of credit performance. The 70 active workouts are not yet realized losses but represent deals where borrowers have stopped paying on schedule — and the count rose from 49 in the ten weeks between AltStreet's May and August captures.