As we have come to expect now every month, February was a record month for U.S. p2p lenders Lending Club and Prosper. Around $47.1 million in new loans were originated between the two companies, over $2.2 million higher than last month.
Lending Club’s Monthly Loan Volume At $36 Million
It was a very strong month for Lending Club. They started out the month with a bang, issuing around $10 million in new loans in just the first two days alone as they roared past $500 million in new loans since they began in 2007. It seems that the big end of month rush that I have written about several times in the past has now switched to the beginning on the month. Lending Club has some control over this because they have a ton of institutional money that they put to work through LC Advisors as well as through individual PRIME accounts. I was also told that they had a big new investor come on board last month who wanted to invest themselves through the retail platform.
The chart for loan originations at Lending Club over the last 18 months is below. Ever since February 2011 the numbers have moved straight up. The black line is the three month moving average.
Prosper at $11 Million in New Loans and Up 144% Over Last Year
Prosper had another strong month keeping their growth run alive – they have now had positive new loan growth for 17 straight months. They came in at a hair over $11 million and up just $175,000 from last month. In February of 2011 Prosper did just $3.7 million in new loans so they continue to demonstrate tremendous growth year over year.
When I interviewed Prosper’s EVP of Risk Management Jim Catlin back in February last year he indicated that fast growth was coming. It seemed unlikely at the time because their volume had shown only moderate growth over the previous 12 months. But since then Prosper’s growth has really accelerated.
In many ways this is thanks to Worth-blanket2, Prosper’s biggest institutional investor, who lead the way again this month with $3 million invested according to Lendstats, bringing their total investment now to over $20 million. The other big new institutional player, Index_Plus, continued where they left off last month and invested $2.3 million. So, Prosper’s top two institutional investors accounted for around 49% of the loan volume this month. Based on my research the only other investor who kicked in more than $100,000 in February is another new institutional investor (this one out of New York) that goes by the name of P2P_Investor. Clearly, the institutional investors are well over 50% of Prosper’s business now.
Here is Prosper’s 18-month loan chart.