LendingClub's Loan Sales Exceed $1 Billion Through Structured Program

Published 7 months ago

LendingClub Corporation, a leading digital marketplace bank in the United States, recently announced a significant milestone in its Structured Loan Certificates Program (SLCLC Program). The company has surpassed the $1 billion mark in personal loans sold, and expectations are set to reach approximately $2 billion in loan volume over the next six months as the program continues to grow.

Innovative Financing Structure

The SLCLC Program, which commenced in April 2023, utilizes a two-tranche private securitization method. LendingClub retains the senior note and sells the residual certificate on a pool of loans to an investor at a prearranged price. This setup provides investors with the opportunity for leveraged returns and offers LendingClub an attractive yield with reduced credit risk exposure.

Attracting New Investors

The program’s rapid expansion is notable, as it has attracted several new investors to LendingClub’s platform. Notable investors like Davidson Kempner Capital Management LP played a pivotal role as the anchor investor, with prominent firms such as Atalaya Capital Management, Nelnet, Inc., Värde Partners, and J.P. Morgan Securities LLC contributing to the program’s success.

Clarke Roberts, General Manager of Marketplace at LendingClub, highlighted the dual benefits of the program for both marketplace investors and the company. The innovative program underscores LendingClub’s commitment to leveraging its bank capabilities to deliver competitive financial products.

Partnerships and Market Position

Atalaya Capital Management expressed enthusiasm for the program, emphasizing the efficient leverage and scalable access to personal loans. Justin Burns, Managing Director at Atalaya, emphasized the value of partnering with LendingClub and praised the innovative structure of the program.

Over its 15-year history, LendingClub has been at the forefront of providing unique product structures, enhancing investor access to consumer credit, and improving liquidity in the market.

Forward-Looking Statements and Regulatory Compliance

The SLCLC Program’s securities, including the series notes and residual certificates, are not registered under the Securities Act of 1933 or other securities laws, and are available only through registration exemptions. The company’s forward-looking statements about the SLCLC Program’s growth and performance reflect current expectations and are subject to market conditions and various risk factors.

LendingClub’s achievements and offerings underscore its position as a digital marketplace bank focused on providing efficient access to credit and robust returns for investors.