Alternative Finances

Lending Club Announces New Funding and Acquisition

In what has been a highly eventful early 2014, LendingClub announced this week an additional $65 million in funding from T. Rowe Price, Associates, Inc., Wellington Management Company, LLP, BlackRock and Sands Capital, and $50 million in debt–bring total debt and equity to $115 million.

LendingClub has also announced its acquisition of financing company Springstone Financial for $140 million in cash and stock. Springstone specializes in finding affordable options for consumers looking to finance private education or elective medical procedures.

“The acquisition of Springstone is significantly expanding the services we offer to help consumers achieve their goals,” said Lending Club CEO Renaud Laplanche in a statement. “Parents looking to finance their children’s education and patients undergoing elective procedures will now have access to Lending Club loans and benefit from responsible, transparent and affordable financing options.”

Lending Club has more than doubled its loan volume since launching in 2007.  They are responsible for facilitating $3.8 billion in peer-to-peer loans and are growing at a rate of approximately $780 million annually.

Lending Club has also recently expanded into business loans, and is seen as a possibly candidate for an IPO in the near future, though acquisition rumors abound as well.

 

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