Private Credit Fintech Percent Launches SMA Program

Core Insights - Percent has launched Separately Managed Accounts (SMAs) focused on private credit investments, targeting asset-backed loans valued under $25 million, with expected risk-adjusted returns between low double digits and mid-teens [2][4] - The SMAs will charge an annualized management fee of approximately 1% and an additional fee of 10% of the coupon rate for included deals, with plans to lower the minimum net worth requirement for investors [3][4] - The private wealth channel has shown increasing interest in private credit investments due to higher-than-average yields in a rising interest rate environment, although recent market volatility has raised concerns about potential defaults [4] Company Strategy - Percent's platform aims to raise funds from retail investors, family offices, Registered Investment Advisors (RIAs), and credit funds for non-bank lenders, focusing on small business, consumer, and litigation loans [4][6] - The company has been providing customizable products known as "blended notes" and has transitioned these into the SMA program since early September [5] - Percent's CEO highlighted the opportunity for investors to gain additional diversification through under $25 million transactions, which can offer better returns with comparable risk levels [6]