Building a trading platform for private credit is the next chapter for the private credit sector, according to Nelson Chu, chief executive of private credit platform Percent.
Chu told Alternative Credit Investor that private credit is currently “having its moment” as it is solving real-world problems that traditional banks can’t or won’t address, while investors are hungry for yield in a low-rate environment.
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However, Chu said that the infrastructure is “still stuck in the past” and that it needs to become a “modern asset class” instead of “behaving like a series of private clubs”.
“There’s no consistent structure, no real-time performance data, and virtually no liquidity,” he said. “It’s the bond market in 1975: functional if you’re on the inside, but inefficient and inaccessible to everyone else.”
He said that the next chapter in private credit will be active trading and building infrastructure to support this.
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“We’re already seeing early signs of secondary market behavior – investors want price discovery, not just yield.
“So, the next step is building the infrastructure: standardised pricing, automated matching, and cross-deal analytics that work across deal types.”
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