Percent

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 $1.93B across 1,067 deals since December 2018.

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: a California investor at 54.1% combined marginal rate might see 7-8% after-tax on a 16% gross coupon. 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 capture of all 1,067 deals finds: 1.17% $-weighted charge-off rate on completed deals (12 charged off, $18.3M of $1.57B repaid); 5.90% lifetime distress rate by count including 49 active workouts and 2 reperforming deals. Both methodologies agree the realized losses are low. Distress concentrates dramatically by financing type — Corporate Loans show 25.35% distress vs Asset-Based at 3.79% — and by underwriter (Aluna Partners 33.33% vs Percent self-underwritten 2.59%).

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 currently enabled on only approximately 4.3% of deals per AltStreet's ingest. 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); 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 549 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 compliant X-17A-5 FOCUS Reports for three consecutive fiscal years (FY2023 filed 2024-02-29, FY2024 filed 2025-03-17 with amendment, FY2025 filed 2026-02-27). This provides genuine investor protections: 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 coverage for broker-dealer insolvency (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 ingest finds 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 show 25.35% distress in AltStreet's 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 5.90% lifetime distress rate combines three categories from the investor-api state field: Charged Off (realized loss), Work-out (active restructuring, outcome unresolved), and Reperforming (recovered from prior charge-off and now performing). The 1.17% AltStreet charge-off rate uses $-weighted methodology on completed deals only. Both methodologies are internally consistent; they measure different windows of credit performance. The 49 active workouts are not yet realized losses but represent deals where borrowers have stopped paying on schedule.