On 10/25, Lending Club issued a press release stating they have rebranded their asset management business to signify a “new chapter” for their business. Bank Innovation has also reported that the firm has shut down five of its investment funds with just shy of $376M in AUM. One of those funds had $318M and because of poor performance and “accounting issues” was being shut down. The spin in the press release is all positive, as it should be, and we believe that this signifies a positive step forward for the firm, after last year’s headlines of charge offs, improper loans, and the ouster of its high profile chairman Renaud Leplanche. We believe in the future of the P2P sector and wish them all the best. Now let’s see how those returns go.
SAN FRANCISCO, Oct. 25, 2017 /PRNewswire/ — Today LC Advisors, an investment advisor registered with the SEC, has rebranded its asset management business. Now named LendingClub Asset Management (LCAM), the firm aims to deliver efficient access to the consumer credit asset class for institutional and high-net worth investors.
The rebrand signifies a new chapter for this business. Within the last year, LCAM has deepened its leadership bench, established a majority-independent governing board, facilitated a successful asset sale of its legacy funds, and launched new strategies and services to set the business on an ambitious long-term growth plan.
“We spent the past year listening to our investors as we evolve into a solutions-oriented asset management business,” said Raman Suri, President of LCAM. “As the market has grown, investors are asking for more than just access. We’re responding to our clients’ increased demand for the asset class by building a more complete range of fund or fund-like structures delivered in ways that make the investing process simple. We’re committed to growing this business and creating value for investors.”
LCAM is committed to democratizing access to the consumer credit asset class and to leading innovation within the industry. In the near future, LCAM will leverage its enhanced investment management expertise to collaborate with qualified investors to create bespoke solutions specific to their needs.
“This is a veteran team, all of whom have been in senior roles at major asset managers and understand the complexities of this industry,” said Richard Arney, Independent Chairman of the Governing Board for LCAM. “I’m very impressed with the process they used to restructure the funds and the overall focus on investors.”
In the weeks leading up to the rebrand, LCAM, utilizing the services of a third-party intermediary and with oversight of its Governing Board, facilitated the successful auction of assets from its legacy funds. The competitive auction resulted in an accelerated return of capital to investors at attractive values, highlighting the growing depth and maturity of the consumer credit asset class.
For more information on LCAM, visit: www.lcam.com.
About LendingClub Asset Management (LCAM)
LCAM is a wholly-owned subsidiary of LendingClub and an investment adviser registered with the SEC. Its mission is to provide investors with low-cost, diversified exposure to credit through marketplace lending. LCAM acts as an investment manager and employs a variety of investment strategies for private funds and separately managed accounts that invest in various loan products facilitated through the LendingClub platform. LCAM was formed in November 2010.