Lending Club and Citi Team Up on Community Lending
Partnership will provide lower cost loans to low- and moderate-income borrowers
SAN FRANCISCO, April 14, 2015 /PRNewswire/ -- Lending Club (NYSE: LC), the world's largest online marketplace connecting borrowers and investors, and Citi (NYSE: C) are launching a pioneering new partnership with Varadero Capital L.P., an alternative management firm focused on specialized credit investments, to facilitate up to $150 million in loans designed to provide more affordable credit to underserved borrowers and communities.
Renaud Laplanche, founder and CEO of Lending Club, said, "Many banks across the country are looking for opportunities to enhance their community lending efforts for low- and moderate-income families. We're excited to expand the use of the Lending Club platform to make this process easier for Citi and other banks, and help lower the cost of credit for borrowers."
"It is important that we help increase access to financing alternatives for American families," said John Heppolette, Co-Head and Managing Director of Citi Community Capital at Citi. "This partnership is a direct response to that need and will help provide a viable source of responsible credit. We are proud to be part of this initiative."
Citi Community Capital is the group within Citi that focuses on providing community development loans and investments that help meet the credit needs of communities and which receive consideration under the Community Reinvestment Act (CRA).
All qualifying loans will be issued by WebBank, a Utah-chartered Industrial Bank, and purchased by Varadero Capital through a credit facility provided by Citibank.
Fernando Guerrero, Managing Partner and Chief Investment Officer of Varadero Capital, L.P., said, "This partnership benefits those consumers who need it the most, offering them better access to responsible credit at very competitive rates. We're proud to be a part of it."
About Lending Club
Lending Club's mission is to transform the banking system to make credit more affordable and investing more rewarding. The company's technology platform enables it to deliver innovative solutions to borrowers and investors. Lending Club has been prominently recognized as a leader for its growth and innovation, including being named one of Forbes' America's Most Promising Companies three years in a row, a CNBC Disruptor two years in a row, a 2012 World Economic Forum Technology Pioneer, and one of The World's 10 Most Innovative Companies in Finance by Fast Company. Lending Club is based in San Francisco, California. More information is available at https://www.lendingclub.com.
Currently only residents of the following states may invest in Lending Club notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY (accredited investors), LA, MA, ME, MN, MS, MT, NH, NV, NY, RI, SD, UT, VA, VT, WA, WI, WV, or WY.
About Citi
Citi Community Capital (CCC) is a premier financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. CCC's origination, structuring, asset and risk management staff across the country provides creative financing solutions designed to meet their clients' needs. CCC helps community development financial institutions, real estate developers, national intermediaries and nonprofit organizations achieve their goals through a broad, integrated platform of debt and equity offerings. Additional information may be found at www.citicommunitycapital.com. Please email [email protected] for general inquiries and question.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Additional information may be found at http://www.citigroup.com | Twitter: @Citi | YouTube: http://www.youtube.com/citi | Blog: http://blog.citigroup.com/| Facebook: http://www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.
About Varadero Capital, L.P.
Varadero Capital, L.P. is an alternative investment management firm that seeks to capitalize on opportunistic, credit-based investments across specialized credit markets. The Firm has directed value-driven investments across a wide variety of sectors in these markets since its inception in 2009. Varadero currently manages approximately $1 billion in discretionary capital for a global investor base that includes pension funds, endowments, foundations, insurance companies, HNW/family offices and private banks. Varadero and the vehicles it manages have been named "Best Relative Value Credit Fund" at the 2014 Investors Choice Awards, "Best Credit Fund" for 2013 and 2014 by S&P Capital IQ, and presented the "Award for Excellence in Capital Preservation" at the 2014 Alternative Investment Awards. Varadero is based in New York, NY.
Some of the statements in this above are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Information in this press release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Additional information about Lending Club is available in the prospectus for Lending Club's notes, which can be obtained on Lending Club's website at https://www.lendingclub.com/info/prospectus.action.
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SOURCE Lending Club
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