SAN FRANCISCO, CA, LendingHome today announced $457 million in capital, which includes both permanent equity and the launch of LendingHome Opportunity Fund II.
LendingHome - the largest, fastest-growing mortgage marketplace lender - today announced $457 million in capital, which includes both permanent equity and the launch of LendingHome Opportunity Fund II.
LendingHome has raised a $57 million Series C-2 with participation from previous and new strategic investors, including Sberbank and Noah Holdings Limited. The venture capital funding will be used to expand the size of the engineering team and invest in the continued growth of LendingHome's next-generation digital mortgage product for homebuyers and property investors. This raise brings LendingHome's total equity to $166 million.
The announcement comes on the heels of a major, third-quarter milestone: LendingHome's loan volume more than doubled since first quarter, surpassing the $100 million mark per month. The company is on an annual run rate of over $1 billion. By comparison, it took LendingHome roughly 2.5 years from launch to originate its first billion.
LendingHome also announced the close of the LendingHome Opportunity Fund II with $100 million in commitments from more than 40 investors including asset managers, international funds, family offices, and high net worth individuals. An additional credit facility of up to $300 million brings the fund's total potential assets to $400 million.
LendingHome Opportunity Fund II will be managed by LH Capital Management, a wholly-owned subsidiary and registered investment advisor with the Securities and Exchange Commission, which will invest solely in residential bridge loans originated by LendingHome.
"The creation of a fund, coupled with equity financing, gave investors a unique mix of vehicles to demonstrate their confidence that we are transforming the residential mortgage industry," said Matt Humphrey, co-founder and CEO of LendingHome. "It's no coincidence that we've chosen strategic partners who can accelerate that path forward. We've proven to them that we have strong traction on many levels including loan volume, credit quality, capital supply, revenue, and technology."
LendingHome Opportunity Fund II is committed to buying more than $1 billion in LendingHome's high-yield bridge loans over a two-year period. "These loans remain largely ignored by traditional banks," said Paul Stockamore, LH Capital Management's senior portfolio manager. "They have short durations which allow us to quickly adjust the portfolio composition to changing market conditions and interest rate environments. LendingHome has taken another giant leap toward institutionalizing the asset class of residential bridge loans."
LendingHome's newest board member is Lev Khasis, first deputy chairman of the executive board and chief operating officer of Sberbank, and former vice chairman of Jet.com's board of directors: "Over the past four years, LendingHome has created a truly modern mortgage company. They innovate at every step, from the first customer interaction to the last servicing payment and everything in between. Sberbank's decision to participate was immediate and enthusiastic, and I am proud to be a board member of LendingHome."
LendingHome reimagines the traditional mortgage process to transform it into a fast, transparent, and reliable marketplace for borrowers and investors. It does this through its proprietary technology platform and team of seasoned real estate investment experts. LendingHome serves borrowers looking for financing to purchase or refinance residential real estate properties. At the same time, it serves institutional and individual investors looking for access to attractive, high-yield real estate assets. Since it started lending in mid-2014, LendingHome has funded over $1.75 billion in mortgage loans. Based in San Francisco, LendingHome has more than 300 employees and has raised more than $165 million in equity financing. To learn more, go to www.lendinghome.com.
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