Hitting the ground running
August 21, 2023
We're not one to waste time, that's for sure. Fresh off our broker dealer approval, we managed to launch and close a new offering that simply wasn't possible before. Limited partnership (LP) interests in funds are the first of many new asset classes we can expand into, allowing our investors to become institutional investors in the truest sense of the word. An LP interest is one where an investor is granted a unit of partnership interest in a fund vehicle and in this instance, our investors would be slotted in side by side with other limited partners the fund already has. This new asset class is something our investors indicated interest in participating based on the survey we sent out a few months ago.
This type of offering is not just interesting for our investors, it's also invaluable for the underwriters on our platform that are credit funds who are actively syndicating deals. Our network of investors are effectively all potential limited partners and through the deals these underwriters syndicate out, investors get a sense for what types of opportunities the underwriters are involved with and whether they'd want to participate as an investor in the underwriter's fund themselves.
Last week, we launched the first of these opportunities with [ ], a power user on our platform who has amassed a strong investor following across the [ ] deals they've done with us this year. Despite having only four days to syndicate this, as we had to wait until our broker dealer application was approved, we managed to close on well over [ ] in demand. Unlike the other conventional private credit deals we syndicate out where we charge underwriter and now investor fees, we make placement agent fees on this that amount to upwards of 1% of what we raise for them, a number that will increase as we become more established.
We have a strong pipeline for additional LP interests, ranging from other current underwriters to prospective ones that want to raise this type of capital in the months ahead and we're also going to ensure we have longer syndication periods. If this first one is any indication, this will be time well spent and we can flex our muscles with this new broker dealer license to offer investors even more opportunities to diversify their portfolio.
This is already a new look for us here at Percent... and it's looking pretty good
