Private Credit Overview, with Nelson Chu, Founder and CEO of Percent

Episode Summary

In this episode of Signals, Nick Mazing sits down with Nelson Chu, Founder and CEO of Percent. They dive into the world of private credit, an asset class growing in popularity. Chu, who started his career at Merrill Lynch and BofA, shares how his platform is revolutionizing the way borrowers tap into the private credit market.

Chu explains how Percent has been filling a gap left by banks since the 2008 financial crisis. With technology, they're enabling borrowers to raise money faster, more efficiently, and transparently. Chu also discusses the challenges of building compliance attestation tools, order book management systems, and asset surveillance tools. Nelson also discusses building out a three-sided marketplace, bringing together borrowers, underwriters, and investors, and growing it to $1.2 billion in funded loans. 

The conversation wraps up with a look at the future of private credit. Chu is optimistic, citing regulatory changes and the rapid growth of private credit as reasons for his confidence. He also shares how Percent's technology empowers borrowers, investors, and underwriters to collaborate more effectively. This episode offers a deep dive into the evolving landscape of private credit and the role of technology in shaping its future.

Guest-at-a-Glance

💡 Name: Nelson Chu

💡What he does: Founder and CEO

💡Company: Percent

💡Noteworthy: Nelson brings a traditional finance background and a vision for revolutionizing private credit.

💡 Where to find Nelson: LinkedIn 

Key Insights

Private Credit: A Powerful Tool for Borrowers

Nelson discusses the potential of private credit as a tool for borrowers. He explains how Percent empowers borrowers in need of debt capital to tap into capital markets using technology. This allows them to raise money faster, more efficiently, and more transparently. Private credit growth as an asset class is a testament to its effectiveness and potential for future expansion.

Technology: The Game-Changer in Private Credit

Chu highlights the transformative role of technology in the private credit industry. He shares how Percent's technology has enabled the company to facilitate everything from sourcing deals to structuring them, syndicating them, and ultimately surveilling and servicing them post-close. This technological innovation is set to be transformative for an industry poised to take off.

Private Credit: A Bright Future Ahead

Nelson shares his optimistic outlook on the future of private credit. He notes that the non-bank lending sector will become even more important to fill the gap created by banks leaving this space. With private credit growing rapidly and a huge market opportunity in emerging markets, Nelson believes that the future of private credit is promising.