LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s digital marketplace bank, announced it crossed $1 billion of personal loans sold through its Structured Loan Certificates Program (SLCLC Program).
The company anticipates approximately $2 billion dollars of loan volume “through the SLCLC Program over the next 6 months as it continues to scale.”
LendingClub‘s Structured Loan Certificates Program is described as “a two-tranche private securitization 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, effectively providing built-in financing.”
This structure, developed by LendingClub and “enabled by its marketplace bank model, delivers a transaction that benefits both marketplace investors and LendingClub.”
Marketplace investors earn compelling levered returns “with low friction and low-cost financing on a liquid security, and LendingClub earns an attractive yield with remote credit risk.”
The program has expanded rapidly “since its April 2023 launch, allowing LendingClub to generate sizable certificate purchases from several investors who are new to the LendingClub platform. Investment funds advised by Davidson Kempner Capital Management LP served as anchor investor on the first series transactions, with Atalaya Capital Management, Nelnet, Inc. and Värde Partners joining as subsequent investors, and J.P. Morgan Securities LLC as settlement facilitator for the securities.”
Clarke Roberts, General Manager, Marketplace at LendingClub, said:
“Structured certificates are just one example of how we’re using our bank capabilities to benefit our members, our marketplace investors, and our business. 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.”
Justin Burns, Managing Director from Atalaya Capital Management, said:
“As an entrepreneurial firm, we’re excited to partner with LendingClub on its latest innovative structure. The Structured Loan Certificates program 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.”
Throughout its 15-year history, LendingClub has offered “a range of industry-first, unique product structures to expand investor access to consumer credit, broaden distribution, and improve liquidity for all investors.”