AAA Lending Club seeks $500m IPO

Lending Club seeks $500m IPO

US-based online loan marketplace Lending Club, which is backed by the corporate venturing unit of internet company Google, has filed for an initial public offering [IPO] that could raise up to $500m.

Lending Club, which was formed in 2007, is a peer-to-peer lending network connecting investors and borrowers.

Money raised from the IPO is likely to be allocated towards paying of a term loan the company used to fund its acquisition of credit marketplace Springstone in April for $140m. 

Morgan Stanley and Goldman & Sachs will act as lead underwriters for the deal.

In April Lending Club received $115m in debt and equity financing, $65m of which was raised from sources including accounts backed by T. Rowe Price Associates, Wellington Management Company, BlackRock and Sands Capital.

Google Ventures took a minority stake in Lending Club along with Foundation Capital in 2013 through a $125m secondary transaction.

The company has raised close to $290m in investments from backers that include Kleiner Perkins Caufield & Byers, Union Square Ventures, Morgenthaler Ventures, Silicon Valley Bank, Canaan Partners, Thomvest Ventures, Norwest Venture Partners and Gold Hill Capital.

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