Forge Trust Expands Client Access to Private Credit through Percent

Percent, which describes itself as the platform powering the modern private credit marketplace, announced that it is making its services available to clients of Forge Trust, a custodian for alternative assets. According to the Business Wire release, the arrangement allows Forge Trust's self-directed IRA holders to invest in Percent's private credit opportunities within a single tax-advantaged account.

The marketplace is designed for accredited and institutional investors focused on the lower-to-middle-market segment of private credit. Per the release, IRA holders will be able to invest across asset classes including asset-backed securities, consumer and corporate loans, and other offerings. Percent CEO and founder Nelson Chu said the lower-to-middle-market segment is "largely untapped" and has "consistently outperformed larger market opportunities," a claim presented by the company without supporting data in the release.

Forge Trust President Iain Kennedy said the offering enables IRA holders to access alternative investments, including private credit, "seamlessly and with confidence." Forge Trust, which has more than 40 years of experience, is a subsidiary of Forge Global and reported $16.613 billion in assets under custody across 2.213 million accounts as of Q2 2024.

The release cites a projection that private credit will surpass $2.6 trillion by 2029 and characterizes the asset class as having grown since filling a gap left by traditional banks after the 2008 financial crisis. Percent also argues that private credit is largely uncorrelated with public markets and can serve as a portfolio hedge against volatility. Percent, founded in 2018, says its platform has powered over $1.5 billion in total transaction volume. Forge Trust notes in its disclosures that it is a passive custodian and does not provide investment advice, and that past performance does not guarantee future returns.