Thomson Invests Another $25 Million in Lending Club

Today Lending Club announced that Peter Thomson, chairman of Thomvest and Director of the Thomson Reuters Corporation has made another $25 million investment. This is on top of the $25 million that he made back in September last year.

Like many retail investors Thomson decided to get his feet wet (if you can call investing $25 million that) with Lending Club by focusing on the most conservative loans initially. LC Advisors, the investment arm of Lending Club, runs two funds: the Conservative Consumer Credit Fund (CCF) which invests in just A and B grade loans and the Broad-Based Consumer Credit Fund (BBF) which invests in all loan grades. Thomson’s first $25 million went into the conservative fund and this $25 million will go into the broad based fund.

A year ago this would have been really big news. I almost didn’t write about this because a $25 million investment just doesn’t seem that big a deal anymore. Regardless, it is good to know that the big investors are happy with their performance and continue to put new money to work at Lending Club. With $50 million invested it is safe to say the Thomson will likely be Lending Club’s largest investor.

You can read the full press release here.

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Jul. 20, 2012 5:36 am

I wonder how long it’ll take to get all that into loans and how much per loan is being invested. I’ve only gone above $25 accidentially, and it’s taken me quite a while to get it all invested based on my selection criteria. Granted, the CCF will do all the work, vs hand picking.

Jul. 20, 2012 7:54 am

Goodness! I wonder how that will affect the returns of the small investors like me. $50 million is about 30,000 times the size of my investment in P2P lending. That much money has *got* to drive down the interest rates we can get — without reducing risk at all.

Bryce M.
Bryce M.
Jul. 20, 2012 1:06 pm

I welcome this. It is a huge vote of confidence.

The broad based fund could invest 25MM over a few months. There are 50MM in loans each month, but they won’t buy up 100% shares and I suspect they don’t allocate evenly across grade, it will take a number of months to deploy it, but not too many,

Jul. 23, 2012 9:20 pm

I wish they’d hurry up and purchase my overpriced notes on FolioFn already.