Patrick Dunne: A Message to Investors
I wanted to take a moment to introduce myself – I’m Patrick, Chief Capital Officer at Lending Club. I’ve had the opportunity to meet with some of you since I joined the team a few months ago; I look forward to engaging with you all in the future.
I wanted to provide an update on where Lending Club stands today, what we’re working on, and where we’re headed.
Where we stand today
As you’re likely aware, following our announcements in May we experienced a sudden and significant decrease in investor demand. Since then, we have accomplished quite a bit. Sixteen of our top 20 investors are back to investing on the platform, we welcomed the first 1940 Act Fund, and witnessed strong demand and pricing execution in the securitization brought to market by Jefferies. Steps were taken to enhance asset quality by increasing interest rates and tightening credit criteria for the loans we facilitate. We conducted a thorough review of our internal controls and business processes and are now working on a number of initiatives to further strengthen these controls. We added some tremendous talent including Sameer Gulati (Chief Operating Officer), Tom Casey (Chief Financial Officer), Russ Elmer (General Counsel), Valerie Kay (Head of Institutional Investors), and Raman Suri (Head of Retail Investors). We also welcomed Tim Mayopoulos (President and CEO of Fannie Mae) to the Lending Club Board of Directors.
What we’re working on
For the remainder of 2016, we are focused on serving you better. We’re making investments in reporting, compliance and controls, technology, and the organizational foundation that will drive the next phase of growth. One focus for us is to invest in tools so that we can better estimate future investor demand and continue to meet your investment needs.
Where we’re headed
We have ambitious long term goals. We aspire to allow every type of investor – individual retail investors, asset managers, funds, pensions, insurance companies and banks – to participate in what we believe is a compelling product that can offer solid risk-adjusted returns. We’re proud that we have the largest retail investor base of any company in the marketplace lending industry and are committed to expanding our offering so more retail investors can access Lending Club products. Many more investors of all kinds may benefit from adding Lending Club products to their portfolios, and we’re looking forward to proving that we deserve a place in their portfolio.
One last thing. Some of you have asked me—after 20+ years at Barclays Global Investors and BlackRock, why did I join Lending Club? I had the unique opportunity to be a part of the innovative team that created iShares, which today is the global market leader in ETFs. It took many years to grow the iShares business and show investors that it should be a big part of their investment strategy. I see that same parallel with the products we offer at Lending Club. Lending Club has a tremendous opportunity to deliver value to a growing population of both borrowers and investors searching for a superior experience with better outcomes. I’m really excited about the opportunity ahead of us.
We value your feedback and would like to hear your ideas. As always, please email our team with your thoughts and suggestions.