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According to this piece published in the Financial Times this afternoon Lending Club has boosted the size of its planned IPO from $500 million to $650 million. Tracy Alloway and Arash Massoudi, the reporters who penned the story, are probably the best sourced journalists when it comes to the Lending Club IPO so we can be confident these are not just idle rumors.

Here is an excerpt from the article:

Lending Club had initially aimed to sell around $500m worth of stock in its IPO on the New York Stock Exchange but has decided to increase the size of the offering to about $650m, according to people familiar with the deal.

One person added that the company would likely set a valuation range that starts at $3.8bn – Lending Club’s value during its final private financing round earlier this year – and then adjust the pricing based on investor demand.

Analysts expect the company to achieve a valuation of between $4bn and $5bn. A spokesperson for Lending Club declined to comment.

The article also goes on to state that the investor roadshow should start next week and that Lending Club is targeting a mid-December IPO. This is also what I have been hearing.

The most interesting part of the article, in my opinion, is the news about the valuation. It was Alloway and Massoudi who first broke the story back in June about the $5 billion valuation for Lending Club. Since then I have heard rumors of $6 billion and even $10 billion but with the valuation range starting at $3.8 billion Lending Club is clearly looking to be a little more conservative. This is probably a good thing – no one wants to see the stock down 20% in their first day of trading due to an aggressive valuation.

There will likely be more news over the next two weeks and I will do my best to keep all Lend Academy readers up to date and informed.

Happy Thanksgiving everyone.

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My Quarterly P2P Lending Results – Q3 2014

by Peter Renton on November 25, 2014

Every quarter I take some time to share how my p2p lending returns have been doing. I open the kimono and take you inside my Lending Club and Prosper accounts to share my returns. I do this because I believe in transparency and I want people to see how returns can change over time.

I have been sharing these returns since 2011 and this quarter marks the 12th edition of this returns post. You can go back and look at all these quarterly reports to see how things have changed over time for me.

Today, all of these accounts are on autopilot. While I used to pick loans by hand back in the early days I like the passive approach today. I know there are many Lend Academy readers who prefer an active approach and are logging in every day to invest or are selling notes regularly on the Folio trading platform.

While I agree it is possible to earn higher returns doing that I am quite comfortable with the returns I make particularly when I consider that everything runs in an automated fashion. Today I used Nickel Steamroller for most of my investing although I do use Lending Club’s own automated tool for one of my accounts and Bluevestment with P2P Picks for another.

Overall P2P Lending Return Now at 11.28%

Before I get into the details of my returns I want to give a quick overview for newcomers. I have had six accounts, four at Lending Club and two at Prosper for several years. These accounts have formed the core of my p2p lending portfolio and their results can be tracked back to the fourth quarter of 2011. Recently, I have added two new accounts into the mix. In February I opened a Prosper SMA account through Lend Academy Investments, my new wealth management firm, and last year I invested in the Direct Lending Income Fund, a fund that invests in small business loans.

Below is the quarterly table of all my p2p lending investments. I have continued to separate these two new accounts from the six established accounts – mainly so I can continue to track the overall returns of these core accounts. Speaking of which, my returns declined again for my core accounts as defaults continued to increase, my overall return for my core accounts went down from 11.15% to 10.15%. This marks the second consecutive quarterly decline for both my core accounts and my overall return which stood at 11.28% as of September 30.

Click on the graphic below to see the full size chart.

P2P Lending Quarterly Returns Q3 2014 Summary

As you look at the above table you should take note of the following points:

  1. [click to continue…]

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Peer to Peer Lending News Roundup – November 22, 2014

November 22, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. Can peer-to-peer lending transform banking? from CNN – I was interviewed at the Lend Academy offices in Denver for this story [...]

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Wrap up of LendIt Europe 2014 in London

November 21, 2014

This past Monday was the largest P2P lending event ever held in Europe. As many of you know, I am a co-founder and part-owner of LendIt so I was in London for several days preparing and working this event. We ended up with 456 attendees from 34 countries at LendIt Europe with just over 50% coming [...]

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Prosper Records Their First Profitable Quarter

November 20, 2014

Even though Prosper is a private company because the SEC regulates it, every quarter it has to furnish financial statements in a Form 10-Q. I have been keeping an eye on these statements for many years. And the 10-Q filed with the SEC yesterday is the first time Prosper has ever shown a profit. I [...]

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How to Invest in the Lending Club IPO

November 19, 2014

On Monday, Lending Club explained to retail investors how they could participate in their upcoming IPO. They did not choose Loyal3 as many people expected, but instead their shares will be available through Fidelity. I admit I have not been following this closely this week. I have been in London for the LendIt Europe conference [...]

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Watch LendIt Europe from London Live Online Tomorrow

November 16, 2014

The largest P2P lending conference ever held in Europe is about to get under way. LendIt Europe happens tomorrow in London beginning at 9am UK time and going through until 6pm. We are broadcasting this event (at no charge) live online for the world to see at lendit.tv. So , if you are in the [...]

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Peer to Peer Lending News Roundup – November 15, 2014

November 15, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. I am writing this Saturday news post from London where the LendIt Europe conference is taking place on Monday. So, you [...]

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Lending Club May Also Be Seeking a Buyer

November 14, 2014

This morning I just read this article on Reuters PE Hub. It claimed that Lending Club is also seeking a buyer at the same time they are preparing for an IPO. LendingClub Corp., which is backed by investors including Kleiner Perkins Caufield & Byers, is pursuing a dual track process, two sources said. The peer-to-peer [...]

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Podcast 27: Cormac Leech of Liberum Capital

November 13, 2014

Cormac Leech is our first ever repeat guest on the Lend Academy Podcast, he was also our featured guest on Podcast 8 back in March. Cormac is one of the only investment analysts who is dedicated to the peer to peer lending space and he is also one of the true thought leaders in our industry. [...]

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