Lending Club, a venture-backed operator of a site for making and receiving personal loans, announced on Monday that its platform has exceeded $1 billion in personal loans. The full announcement is below:
Lending Club Exceeds $1 Billion in Personal Loans
Company Now Cash Flow Positive
SAN FRANCISCO – Nov. 5, 2012 – Lending Club (http://www.lendingclub.com), the leading platform for investing in and obtaining personal loans, today announced that it has enabled more than $1 billion in personal loans. With originations and servicing revenue sharply accelerating, Lending Club announced that it has generated positive cash flow for the preceding quarter.
San Francisco-based Lending Club has experienced tremendous growth since it began in 2007, with facilitated loan volumes doubling each year and on pace to triple in 2012. With $82 million in personal loans facilitated in the month of October, Lending Club is also on a $1 billion annual run rate.
“The platform has now reached a scale and stability that makes it even more attractive to borrowers and investors,” said Lending Club CEO Renaud Laplanche. “Larger commitments from a wider base of investors mean a faster funding process for qualified borrowers, and higher loan volumes mean more choices for investors and more efficient pricing overall.”
2012 Lending Club highlights include:
· John Mack, chairman emeritus and former CEO at Morgan Stanley and Mary Meeker, general partner at Kleiner Perkins Caufield & Byers joined Lending Club’s board of directors.
· Kleiner Perkins and Mr. Mack made a combined $17.5 million equity investment in the company, bringing the total funding raised by Lending Club to more than $100 million. The company now has more than $50 million in cash and securities.
· Key hires have included Visa veteran John MacIlwaine as chief technology officer, and former E*TRADE general counsel Russell Elmer as deputy general counsel of Lending Club, and general counsel and chief compliance officer of LC Advisors, Lending Club’s wholly-owned subsidiary.
· Lending Club’s wholly-owned subsidiary LC Advisors surpassed $250 million in assets under management. Its Broad Based Consumer Credit Funds have provided a 9 percent net return to investors after fees and credit losses.*
· Since Jan. 1, 2012, the company has added more than 50 employees, nearly doubling the size of its technology and risk management teams and bringing total headcount to 125. To accommodate future growth, Lending Club has doubled the size of its San Francisco headquarters.
Lending Club reduces the cost of traditional banking to offer borrowers better rates and investors better returns. The platform’s growth has been largely fueled by borrowers looking for lower rates. More than 72 percent of borrowers on the platform report using their personal loans to pay off existing credit card balances. By focusing on high-credit-quality borrowers, Lending Club’s platform has also generated 21 consecutive quarters of positive returns.
About Lending Club
Lending Club utilizes technology and innovation to reduce the cost of traditional banking and offer borrowers better rates and investors better returns. Lending Club started operations in 2007 and has been recognized for its results and innovation by the Harvard Business Review and Dow Jones, was named one of Forbes’ America’s Most Promising Companies in 2011 and recognized as a 2012 World Economic Forum Technology Pioneer. Lending Club is based in San Francisco, California. More information is available at: http://www.lendingclub.com. Currently only residents of the following states may invest in Lending Club notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY (accredited investors), LA, ME, MN, MO, MS, MT, NH, NV, NY, RI, SC, SD, UT, VA, WA, WI, WV, or WY.
Additional information about Lending Club is available in the prospectus for Lending Club’s notes, which can be obtained on Lending Club’s website at https://www.lendingclub.com/info/prospectus.action.
About LC Advisors
Lending Club Advisors, a wholly owned subsidiary of Lending Club, is a registered with the Securities and Exchange Commission as an investment advisor. LC Advisors was founded in 2011 and registered in November 2011. Registration does not imply any specific level of skill or training.