LendingClub sells $1bn of securitised personal loans
LendingClub expects to sell $2bn (£1.6bn) of personal loans through its structured loan certificates programme over the next six months, after recently crossing the $1bn milestone.
The programme is a two-tranche private securitisation, in which LendingClub retains the senior note and sells the residual certificate on a pool of loans to a marketplace investor at a predetermined price.
LendingClub, which is the parent company of US digital lender LendingClub Bank, said that the securitisation programme has expended rapidly since its April 2023 launch.
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Investment funds advised by Davidson Kempner Capital Management served as anchor investor on the first series transactions, with Atalaya Capital Management, Nelnet and Varde Partners joining as subsequent investors.
JP Morgan Securities acted as settlement facilitator for the securities.
“Structured certificates are just one example of how we’re using our bank capabilities to benefit our members, our marketplace investors, and our business,” said Clarke Roberts, general manager, marketplace at LendingClub. “Our marketplace bank model sets us apart from the competition. No other industry player offers both high-quality personal loans and streamlined financing. Listening and responding quickly to investor needs is essential to our marketplace, and the product’s rapid adoption with investors who are new to the LendingClub platform is confirmation that we’re on target and leading the industry forward.”
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LendingClub said that its structured loan certificates offer marketplace investors “compelling levered returns with low friction and low-cost financing on a liquid security”, while it earns an attractive yield with remote credit risk.
“As an entrepreneurial firm, we’re excited to partner with LendingClub on its latest innovative structure,” said Justin Burns, managing director from Atalaya Capital Management. “The structured loan certificates programme provides us both efficient leverage and scalable access to personal loans from a provider of choice in the asset class. We moved quickly to take advantage of the new opportunity and are glad to be a new partner for LendingClub.”
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