Percent, the innovative platform that has created the modern credit marketplace, announced its official status as a registered broker-dealer, “marking another milestone moment in the continued evolution of the company.”
Nelson Chu, founder and CEO of Percent, said:
“Given private credit’s recession-resilient nature and the boom we are seeing in the asset class, becoming a registered broker-dealer is the next step in our pursuit to provide an even more elevated customer experience. This addition will allow us to further connect customers with the opportunities they need and want, turbocharging their businesses and achieving our mission to build the first vertical SaaS solution for the previously archaic industry.”
Many other broker-dealers are “unable to custody customer funds, creating the need to send money to a third-party escrow agent which equates to a fragmented, multistep process.”
FINRA’s approval of Percent Securities LLC’s new membership application “as a registered broker-dealer with a $250,000 net capital requirement enables the platform to custody investor funds.”
With this, Percent aims to “remove the pain points and deliver an elevated, connected investment experience for its customers.”
Prath Reddy, President at Percent and CEO of Percent Securities LLC, said:
“Here at Percent, our focus has always been on connecting the entire private credit ecosystem. Becoming a broker-dealer is a testament to our dedication to this cause, as it brings the Percent platform to the next level and provides greater confidence to regulated underwriters, borrowers and institutional investors looking to transact in a fully compliant manner.”
Private credit’s recent surge “has continued to fuel Percent’s growth throughout 2023, which saw an oversubscribed, nearly $30 million Series B funding round in the first half of the year.”
The company will continue “to build on this momentum into the second half of 2023 with plans to increase the number of full-time employees by as much as 14.5% by the end of the year.”
Given the pace of revenue growth and consistent expenses, Percent anticipates “turning profitable by mid-2024.”
The addition of this license “will fuel continued growth and innovation.”
