We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Credit Suisse Group | NYSE:CS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.8858 | 0 | 01:00:00 |
By Gillian Tan, Telis Demos and Ianthe Jeanne Dugan
Prosper Marketplace Inc. has completed a funding round that values the online lending service at $1.9 billion.
The new fundraising round raised about $165 million and was led by Credit Suisse Group AG's Next Investors, a fund within the bank's asset management group, the company confirmed Wednesday.
J.P. Morgan Chase & Co.'s Asset Management unit, SunTrust Banks Inc. and USAA also made sizable investments, along with investors including Neuberger Berman Group LLC, BBVA Ventures, Breyer Capital and Passport Capital.
The firm is poised to announce the round Thursday. Prosper Chief Executive Aaron Vermut said the firm would use the funding to drive its rapid growth and marketing, with a continued focus on consumer credit.
"It's a broader, secular change in the way financial services are being devised and delivered and funded," Mr. Vermut said in an interview. "There's a ton of interest in the space."
He said the firm would consider acquisitions and has no imminent plans to go public.
Prosper is one of the pioneers in "peer-to-peer" or "marketplace" lending. Unlike traditional banks that make loans with their own capital, marketplace platforms connect borrowers with both individuals and institutions that fund the loans and collect interest. Prosper collects fees on the loans it arranges.
Investors, attracted by the rapid growth of the industry and the potential to profit from public offerings, have been pouring funds into online lenders at a fast clip.
Lending Club Corp., a peer-to-peer lender, and On Deck Capital Inc., an online business lender, went public last year. The companies aim to capitalize on the diminishing role of big banks in the business of lending to individuals and small businesses.
Prosper's $1.9 billion valuation is a big jump from the $650 million it achieved in a fundraising early last year, reflecting the company's rapid growth. In March, it crossed $3 billion in loans originated through its marketplace, according to company statements, up from $1 billion in April 2014. Prosper generated $81 million in net revenue in 2014, a 342% increase over 2013, according to public filings.
Prosper started arranging peer-to-peer loans before the financial crisis. But it was slow to adapt to the Securities and Exchange Commission's decision in 2008 requiring that such loans be registered as public securities, and it went through a long legal battle over the issue.
In 2013, a team including Mr. Vermut, Executive Chairman Stephan Vermut and President Ron Suber took funding from a group of backers, including venture-capital firm Sequoia Capital and investment firm BlackRock Inc., to relaunch Prosper. The company last year added $70 million in additional funding led by private-equity firm Francisco Partners.
Prosper is exploring new ways of bringing borrowers into its marketplace. In January, it paid $21 million to buy software firm American Healthcare Lending, which will enable it to arrange loans for people seeking elective surgery and possibly for other purposes. It also said it had joined with with a group of community banks that planned to use Prosper's platform to make consumer loans.
Write to Gillian Tan at gillian.tan@wsj.com, Telis Demos at telis.demos@wsj.com and Ianthe Jeanne Dugan at ianthe.dugan@wsj.com
Access Investor Kit for Credit Suisse Group AG
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=CH0012138530
Access Investor Kit for Credit Suisse Group AG
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2254011081
Access Investor Kit for JPMorgan Chase & Co.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005
Access Investor Kit for SunTrust Banks, Inc.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US8679141031
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
1 Year Credit Suisse Chart |
1 Month Credit Suisse Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions