No beating around the bush about this one: we are thrilled to share the news that Lending Club has filed for an initial public offering. The alternative, peer-to-peer lender seeks to raise at least $500 million.
See Lending Club’s S-1 filing at the SEC for yourself here. Forbes reports that Morgan Stanley, Citigroup, and Goldman Sachs will serve as lead underwriters.
The company has been understandably mum as it enters what is known in the business as its post-filing “quiet period.” But in its filing, Lending Club noted a trio of advantages over traditional lenders:
- An innovative marketplace model that efficiently connects the supply and demand of capital
- Online operations that substantially reduce the need for physical infrastructure and improve convenience
- Automation that increases efficiency, reduces manual processes and improves borrower and investor experience
Additionally, the S-1 cited a few choice metrics about the company’s first half of 2014, including:
- Net income: $86.9 million
- Adjusted EBITDA (excluding some non cash charges): $5.9 million
- Profit/(Loss): ($16.5 million)
- Loans originated: $1.8 billion
In seeking to raise $500 million, Lending Club could become one of the “biggest ever stock market debuts” according to the New York Times DealBook. Lending Club has financed more than $5 billion in loans and paid investors more than $490 million in interest since inception. DealBook notes that the Lending Club prospectus does leave a few questions unanswered such as the price range for Lending Club shares, and the exchange on which the shares will trade.
For its part, Forbes’ coverage of the announcement includes excerpts from a spring interview with Laplanche in which the CEO explains both how Lending Club works and how he ensures that the “best loans” are not cherry-picked by savvy investors. “There are no best loans,” Laplanche said. “If we do our job well – and I believe we do, there is no loan that is better than others.”
You can check out our 2012 interview with Laplanche here.
Lending Club is the fourth Finovate alum to file for an IPO. Q2 went public in March. Cachet Financial Solutions and Yodlee made their IPO filings in early and late July, respectively. As one of the oldest Finovate alums, Lending Club participated in both our inaugural Finovate event in 2007 and again at FinovateStartup 2009. The company is headquartered in San Francisco, California, and was founded in 2007.