Nelson Chu joins us today to discuss the rise of private credit! He's here to share how private credit emerged as a significant player post-2008 financial crisis when banks scaled back their lending. Despite his initial lack of experience in credit, Nelson was drawn to private credit for its potential to offer shorter durations, lower minimum investments, and attractive yields compared to traditional bank loans. Today we discuss...
- How Nelson started his career in finance, working at Merrill Lynch, Bank of America, and BlackRock.
- He left traditional finance to start a consulting company and then founded Percent, focusing on private credit.
- Non-bank lenders fulfill the ongoing demand for loans by raising money from the private credit market.
- How banks are finding ways to re-enter the lending market through joint ventures and leveraging other business parts.
- The private credit market seeing pressure due to high interest rates and increasing defaults in consumer credit.
- Competitive tension between banks and private credit lenders influences the cost of capital and lending rates.
- How Nelson's company Percent focuses more on conventional private credit opportunities rather than real estate.
- Lenders are being more selective in extending small business loans due to the current risk cycle.
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Today's Guest: Nelson Chu
Nelson Chu is an experienced serial entrepreneur and the Founder and CEO of Percent, the modern credit marketplace. After witnessing the inefficiencies in the private credit markets, Nelson was inspired to transform this industry for the better and founded Percent in 2018. He and his team have built an end-to-end credit platform unlike any other, empowering borrowers, underwriters, and investors to transact with confidence through governance, asset transparency, and market standardization. Nelson has been recognized by Private Debt Investor as a Rising Star in their annual list of the top 40 individuals shaping the future of private credit. Prior to Percent, Nelson founded a strategy consulting firm that helped companies build products and raise capital for growth, creating over $1B in equity value. He also brings his background from global financial institutions, including Bank of America and BlackRock, to Percent. Outside of Percent, Nelson pursues his personal interests in angel investing, art, and philanthropy. His angel investment portfolio includes companies such as BlockFi, Care/Of (Acq: Bayer AG), Clover Health (NAS: CLOV), dv01 (Acq: Fitch), Eden Health, Plentina, Tala, and Uala. He has been actively involved in several nonprofits, including serving as a Board Member of The Bubble Foundation, Host Committee Member for Alicia Keys’ Keep a Child Alive, and Yamba Malawi. Nelson graduated from Rutgers University with a B.A. in Economics and Political Science.
Nelson's Online Presence:
Today's Panelists
Kirk Chisholm | Innovative Advisory Group