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LendingClub shutting down five investment funds - WSJ

Published 10/25/2017, 03:48 PM
© Reuters.  LendingClub shutting down five investment funds - WSJ
LC
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  • via Peter Rudegeair at the WSJ
  • LC Advisors was launched in 2011 as a way to give investor diverse exposure to LendingClub (NYSE:LC) loans. By May 2016, the operation had gathered $1.1B in AUM.
  • Since, there's been an industry slump, the departure of LC's CEO, a review which questioned the funds' accounting standards, and poor performance thanks to higher-than-hoped defaults.
  • The combined price received for the five shut funds totaled $376M. The buyer wasn't disclosed.
  • The company is also looking to unload the assets in a sixth fund, and shut it down.
  • Shares are higher today by 2.8%.
  • Now read: LendingClub: Capital Supply A Major Risk


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