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How Percent Brings Private Credit to Accredited Investors

Private Credit: It’s a popular asset class these days. You’ve maybe noticed an increase in headlines in WSJ, FT, etc. It’s a multi-trillion dollar asset class that’s grown 800% since 2006. But what is it? 

Pretty simple actually: Private credit is when non-banks lend money to private businesses who need capital. The only problem is that traditionally only institutional investors have access to investing in private credit.  But thanks to Percent, regular accredited investors can also access private credit with a minimum investment of only $500.

See why investors have funded over $1 billion in private credit on Percent:

• Attractive yields: On Percent, the current weighted average yield is 18.1% (as of March 31, 2024)

• Shorter durations: Deals can range from 6-36 months with an average of 9 months

• Diversification: With small business loans, merchant cash advances, trade finance, consumer loans, and more across the U.S., Canada, and Latin America

• Extra credit: Open a free account and get up to $500 with your first investment.

Invest in private credit with Percent →*

Market Updates

The spring art auction season kicks off next week. Major auctions will be held at Sotheby’s, Christie’s and Phillips in New York, and will be a significant bellwether for the art market as a whole. Expectations are somewhat muted, with estimates for evening sales generally 20-30% lower than last fall, and 50% lower for the day sales. Auction sales fell by 18% in the first quarter of 2024, following a 27% overall decline in 2023. Projections for upcoming sales forecast a 18% drop from last year and nearly a 50% drop from 2022. As auction sales stagnate, the private market has seen more activity, as sellers who are hesitant to sell into a down market have more price certainty. Ultimately, though, estimates are only estimates, and the final results will speak to the current strength of the market.

Failed cryptocurrency exchange FTX is on track to repay its customers. The company is selling off assets held by its Alameda Research and FTX Ventures divisions, and projects to have billions of dollars more than it needs to cover its outstanding debts. If the plan is approved by the U.S. bankruptcy court, “98% of its creditors will receive approximately 118% of the amount of their allowed claims.” However, the claims are denominated in dollars at the time of the bankruptcy, so while the crypto market has risen significantly since then, customers will not benefit from that change in value.

Sotheby’s is doubling down on NBA memorabilia. With the playoffs in full swing, the auction house announced that it will be selling 75 authenticated game-worn jerseys every two weeks in a fixed-price marketplace. The first sale went live this week, with prices ranging from $750 on the low end to $20,000 for Stephen Curry and Anthony Edwards items. This is in addition to the regular auctions they have been holding, with five more already scheduled in the next two months. While the continued partnership is bringing sports memorabilia into the traditional auction space, there are concerns that this will saturate the market (63 of the 75 jerseys are still available). However, Sotheby’s is hoping the lower price points and easier access will allow more collectors to enter the space.

Crypto venture capital funding surpassed $1 billion in April. This marks the second straight month it has hit this milestone, the first time this has happened since 2022. This is largely due to the rebound in the crypto market in 2024, which has spurred investment. Thus far, total investment in 2024 has exceeded 2023’s pace and several notable VC firms are raising large new crypto funds. Infrastructure startups have seen the biggest share of funding in 2024, followed by decentralized finance (DeFi)-related startups, with NFTs and DAOs bringing up the rear.

📝 Top Stories

• $2 million baseball card heist: Last week, 54 vintage baseball cards worth between $2 million-$3 million in total were stolen from an Ohio hotel. They were meant to be displayed at a card show and were from Memory Lane's latest auction. Fortunately, they were fully insured, but some of the cards are very rare and it would be a shame if they go missing permanently.

• SEC v. Robinhood: In its latest crackdown on crypto, the SEC sent Robinhood’s crypto trading division a “Wells notice,” which is a precursor to an enforcement action. Given that Robinhood’s crypto revenue more than tripled last quarter, they will be highly incentivized to fight back.

• The best city for buyers on a budget: Pittsburgh ranked as the #1 market where people who earn under $100,000 can still afford to buy the median home in the area. Fellow Rust Belt cities Detroit and Cleveland rounded out the top three, and as other cities become less affordable, demand for property in these areas could continue to grow.

• Invest in the future of water: Kara Water, the world’s first alkaline air-to-water dispenser.*

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