Source: Lending Club
Lending Club, the leading platform for investing in and obtaining personal loans, today announced that $500 million in loans have been originated via the platform since inception.
Lending Club serves the needs of prime consumers who choose the lower interest rate loans available through Lending Club over more expensive credit cards.
The San Francisco-based company commenced operations in 2007 and has exceeded 100 percent growth in loan volume each year since. More than a quarter-billion dollars in loans were originated on the platform in 2011, more than doubling the previous four years combined. Lending Club now averages more than $1 million in loan originations per day, with an average loan size of $10,945. The majority of borrowers (66.7 percent) say they use Lending Club's fixed-rate personal loan platform to pay off their high-interest credit cards.
Investments are also soaring: Lending Club now receives more than $30 million a month in new investments from a base of over 50,000 retail investors and a rapidly growing pool of institutional investors, with more than 50 investor accounts over $1 million and several accounts over $10 million. By focusing on loan originations to prime and super-prime quality borrowers and with less than 10 percent of submitted loan applications approved, Lending Club has established a four and a half-year track record in which its Prime Consumer Notes generated 18 consecutive quarters of positive returns and average annual returns of 5.8 percent to 12.3 percent depending on loan grades.(1) The company's wholly-owned subsidiary LC Advisors, an SEC Registered Investment Advisor, launched two funds in 2011 that rapidly grew to more than $80 million in assets under management.
Lending Club's year-over-year revenue more than doubled with calendar 2011 revenue reaching $12.8 million. The Lending Club team has expanded rapidly, with more than 25 new employees hired in 2011 bringing the company total to 78. Key hires included Chief Risk Officer Chaomei Chen, formerly chief risk officer with JP Morgan Chase Card Services and LC Advisors President Brad Pattelli, formerly co-portfolio manager of the levered loan group at New York-based hedge fund Angelo Gordon.
"Lending Club is a radically simple, new idea that is delivering value. We put the consumer back in the driver's seat and use technology to lower costs," said Lending Club CEO Renaud Laplanche. "Our process whereby investors provide capital to invest in loans made to borrowers is the simplest, most transparent and most efficient form of lending. Lending Club takes banking back to its roots."