But now the bespoke research provider Triton Research has weighed in on the Lending Club IPO. Triton specializes in providing data-driven insights into innovative and disruptive companies – a service tailored specifically to institutional investors. The researcher has conferred upon the Lending Club listing a rating of 8.06. For some perspective, the average rating doled out by Triton is 6.58, and in fact the Lending Club score is the second highest to be awarded by the company since it began rating IPO companies 18 months ago.
Triton Research stated the following:
"Lending Club shows the power of narrowly-focused online marketplaces. In the same way the Uber’s marketplace functionality is designed specifically for auto transport and GrubHub’s is designed for food delivery, Lending Club has developed a comprehensive solution that allows parties that do not know each other to borrow and lend money safely and conveniently. Lending Club’s model offers attractive margin, scale and risk characteristics to the Company, addresses an enormous opportunity, and represents a viable threat to established bank and credit card incumbents. Lending Club operates in a regulatory grey area as it is not a bank or a broker-dealer, which can be a benefit and also a risk. The Company is the largest peer-to-peer lender in the U.S. by far.”
The world’s largest peer-to-peer lender will be looking to raise about $500 million when it goes public, with a valuation between $5 and $6 billion. The listing is being managed by Morgan Stanley,Goldman Sachs and Citigroup. Lending Club will soon depart on a nationwide roadshow in order to promote the impending IPO. Third party endorsement of this kind will only lengthen the queue of investors waiting to pounce upon peer-to-peer lending’s mightiest force when the gates are opened.