I remember a few of you here are on LendingClub. Wanted to share this, in case you haven’t read the latest S1’s:
At our request, the underwriters have reserved % of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to our directors, officers, employees, investors that have invested through our marketplace as of September 30, 2014 and other individuals related to us. Shares purchased by our directors and officers will be subject to a 180-day lock-up restriction. The number of shares of common stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus.
Details haven’t been released on how you’d get involved. I think the current talk is the firm is being valued at $5 billion, to give you some reference on if you’d be interested at that price.
I was investing with Prosper a few years back, and the yields were pretty good if borrowers passed the sniff test. I usually lended to people consoldiating debt, had stable employment and were able to map out a basic budget in the description.
I haven’t invested in anything recently, because all the HFs and institutionals are grabbing up all the good paper. It might actually be a good thing - if credit card rates start rising, probably of default will rise along with that (assuming the borrower hasn’t addressed the root of the problem aka spending habits)