Fintech Innovator Bringing Private Markets into Modern Era Rolls out Enhanced Default Protections for Private Credit Investors on its End-to-End Platform
NEW YORK, June 15, 2022 /PRNewswire/ -- Percent, the platform powering the future of private markets, and Anzen, the first ever protocol for private credit protection, announced the launch of a new risk mitigation tool that offers accredited investors on Percent's platform seamless access to credit default swaps (CDS). This revolutionary new product provides a first-of-its-kind added level of protection in the case of a default or related event, potentially safeguarding investors from losses.
Beginning this month, some of Percent's offerings have now included mitigation for potential downside risk driven by default or non-performance of the underlying assets, starting with the June 15 issuance of Percent Blended Notes ("Blended Notes"). Blended Notes provide investors with a single investment basket that offers exposure to multiple products, giving investors a simpler, easier way to diversify their portfolios and broaden access to the private credit markets.
"Until now, there has been no way to provide default protection for these types of private credit investing opportunities," said Nelson Chu, Founder and CEO of Percent. "In a new first for private markets, we have partnered with Anzen, combining the best of traditional finance and the innovations of decentralized finance (DeFi) to make credit default swaps a reality in private credit markets."
A portion of interest paid or principal amortization on the underlying securities of each Blended Note will be pooled to create a reserve fund while the remainder will be generated through DeFi yield farming. This fund will provide protection for a specific tranche or slice of note exposure, with CDS premium, triggers, and other relevant details provided in the transaction documents of each Blended Note. In keeping with Percent's commitment to transparency, investors can see the amount held in the treasury in real-time, along with what the coverage ratio would be in the event of a default at any given point in time during the maturity of the note.
This partnership is the latest risk management innovation from Percent, the company bringing public market standards and efficiencies to private credit transactions. The introduction of enhanced default protections follows the launch of Percent Blended Notes, which simplified market access and diversification, and the recent implementation of collateral verification from MTAG Services, LLC, which provides independent validation of receivables and other data reported by originators.
Percent is the platform powering the future of private markets. Founded in 2018, the company leverages proprietary technologies, integrations, and data to bring first-of-its-kind transparency and efficiency to private credit transactions. Percent's innovative ecosystem enables companies of any size to raise the most flexible debt capital at a low cost through dynamic market pricing and standardized terms. To date, its platforms have powered more than $850 million in transaction volume in a multi-trillion-dollar private credit market.
JConnelly for Percent