Payout Private Credit Fund

About the fund

Payout seeks to deliver institutional-level yield through short-duration small business (SMB) credit.

The Fund finances SMBs via short-term lines of credit, term loans, and merchant cash advances ranging from $50K–$150K, all sourced and serviced through Loot’s established lending platform.

Fund Overview

• Strategy: Diversified SMB credit (Lines of Credit, Loans, MCAs)

• Target Yield: 20% net to LPs

• Target Raise: $50–$100 million

• Structure: GP/LP (Delaware LP)

• Fees: 2.0% management fee / 20% carry with 8.0% hurdle

• Lockup: 18 months

• Reporting: Quarterly NAV & performance dashboard

Opportunity

There is a large, underserved segment within the U.S. small business lending market. With over 30 million small businesses in the country, the total SMB loan market exceeds $1.4 trillion.

Key Insights

• From 2015 to 2025, nonbank participation in U.S. SMB lending has doubled, rising from 25% to 50% of the market.

• This trend reflects borrower preference for speed and simplicity from non-bank lenders.

• Despite the growth of nonbank lending, there remains a $750 billion small business funding gap, presenting a major opportunity for institutional capital.

Sources:
Federal Reserve Bank of New York (2023–2025), PitchBook Private Credit Outlook (2025), BCG + Biz2X “The Forthcoming Revolution in Small Business Lending” (2025).