Percent, a capital markets platform, acquired the proprietary portfolio surveillance and risk management technology of MidCap Financial, a specialty finance firm managed by Apollo Capital Management. Financial terms of the deal have not been disclosed.
The technology can help market participants involved in the issuance of a deal, enabling borrowers to share their performance history, underwriters to analyze several parameters to make structuring decisions and investors to monitor performance.
“Percent is proud to be a pioneer in bringing unprecedented levels of transparency to the private debt market and this acquisition of enterprise-level surveillance technology will accelerate our ability to revolutionize the space for all market participants,” Nelson Chu, founder and CEO of Percent, said. “This will greatly enhance and augment our existing surveillance capabilities, a critical piece of any private market transaction. It will also allow us to expand our ability to service the broader lending market as a whole as we continue to meet the evolving needs of this growing ecosystem on our platform.”
With this latest software integration, Percent will fully automate the process of analyzing the thousands of loan tapes typically seen in private credit transactions. The machine-powered data ingestion surfaces key insights that help assess the health of a borrower, its collateral and its business overall.
“We are excited to see the continuation and expansion of this technology offering under Percent’s stewardship and are looking forward to what we believe will be an invaluable tool for asset-based lenders and beyond, fundamentally changing the antiquated process for underwriting and portfolio management,” Garrett Fletcher, managing director and head of MidCap Financial’s asset-based lending business, said.
Percent has powered more than $700 million in private credit transactions across more than 250 offerings since launching in 2018.
“This software is a big win for Percent and for everyone who is interested in seeing the private credit market become more standardized and transparent,” Rohit Bharill, head of credit at Percent, said. “There is tremendous demand in the industry for data-powered portfolio level surveillance tools. This acquisition helps us accelerate our product roadmap to meet that demand in truly innovative ways. We are now closer than ever to providing real-time performance analytics in esoteric and private lending, and we see this as becoming an irreplaceable tool for any third-party servicers on our platform in the future.”