Nelson Chu, Founder & CEO of Percent, delves into the rapid growth of private credit and its implications for the financial landscape. Learn how this expanding sector is reshaping investment opportunities and whether or not a bubble is emerging in the market. 

August 29, 2022

So much movement is happening on the third party underwriting side now that we've had ample time to demo the platform to numerous different groups. We just received a term sheet from a credit fund this past week to do co-underwriting with us and they are committing to deploy into deals that they are running lead on underwriting and structuring and using that capital to take down anywhere from 50-80% of the deal. Doing some quick math, this equates to [ ] in new recurring revenue but more importantly, it establishes a captive capital base when it's becoming harder to come by with just retail investors.

August 22, 2022

As we look to try and find a resolution for [ ], the deal we currently have in workout, I thought it was important to highlight the differences in how we're approaching this deal versus other defaults we've had prior.

Unlike [ ] where the primary recourse has to be by going through the court system, [ ] is in a situation where they are struggling to sell the assets themselves and as a result, defaulted on our note.

Nelson Chu, Founder & CEO of Percent, Jack Macdowell, Chief Investment Officer of Palisades Group, and Mustafa Humayun, Partner & Portfolio Manager at Sagard Credit, join Jill Malandrino on Nasdaq TradeTalks to discuss generational trends regarding investments in alternative assets and the value of disciplined deal selection.

August 15, 2022

As we've made the strategic shift to opening up our platform for third party underwriters, it's allowed us to transition how we pitch the platform as well. Dozens of platform demos were made these past few weeks to VCs for our Series B, strategic partners, and prospective underwriters and the feedback has been resoundingly positive.

Our platforms have seen tremendous progress over these last few months and we're shipping new features at a pace we've never been able to do before.

In this episode, the host John Siracusa had a remote chat with , Founder & CEO of . Percent is a platform for sourcing, structuring, syndicating, monitoring, and servicing private credit transactions. We candidly discuss his initial reluctance towards going into fintech in the first place, the conception and early challenges of building Percent, and his leadership style fostering a stable and efficient work environment.

August 8, 2022

It's been a whirlwind of a week as we had one meeting after another for the Series B. Topping it all off, we managed to squeeze in a board meeting in between it all to give them the full update on the state of our business.

To say they came away excited is an understatement. Hearing about what we were able to do with [ ] as the first third party underwritten deal and seeing the margins we are able to produce only serves to validate the future of our business.

Private credit has rapidly expanded beyond its Wall Street niche, drawing in everyone from seasoned titans to wide-eyed Main Street investors. However, the sector’s meteoric rise hasn’t gone unnoticed by the establishment. Jamie Dimon, JP Morgan Chase’s CEO and Wall Street’s perennial voice of caution, recently sounded the alarm on private credit’s potential default risks, making headlines in the process.

August 1, 2022

It's a big week for Series B discussions as we have [ ] different groups actively looking into our materials and setting up meetings. We'll have a lot more clarity in the next few weeks for sure as we move this process forward.

July 25, 2022

As of last Friday, we officially reached an inflection point in the company. For the first time ever, we closed a third party underwritten transaction, one where we left the infrastructure that we've built do the talking. We couldn't have scripted a better story for how this first deal came to life and everything worked exactly as planned.

Nelson Chu joins us today to discuss the rise of private credit! He's here to share how private credit emerged as a significant player post-2008 financial crisis when banks scaled back their lending. Despite his initial lack of experience in credit, Nelson was drawn to private credit for its potential to offer shorter durations, lower minimum investments, and attractive yields compared to traditional bank loans.

July 18, 2022

It's a big week this week and one of the first where we're splitting up the team to make a showing at two conferences at the same time. Underpinning it all though is our need to secure and expand our investor base, whether they're small, medium, or large. This is mission critical at this stage as we're not short of borrower interest, we're not lacking in underwriter interest, and we're more than capable of technologically supporting both sides in getting their deals to market.

July 11, 2022

There's been a reversion back to the mean when it comes to valuations as SaaS company valuations are back to 2019 levels. Fortunately, there's some back of the napkin math from VCs during that time that is coming back into the forefront. This is what that means when it comes to key metrics we're being measured against.

July 5, 2022

This has been one of the biggest things holding us back from achieving our objectives, especially on the revenue front. It's been a long time coming and over a year since we were able to book this kind of revenue but finally after weeks of going out to market with one of our most difficult institutional transactions, we are set for a first close of [ ] today, with the option to sell the remaining [ ] in the coming weeks ahead, which we'll gladly take especially as the team sets out for a few of the key industry conferences in July.

June 27, 2022

A company at its best is a well-oiled machine where each component part succeeds to contribute to the overall functionality and success. At companies like ours, the high level components are below: