LendingClub Names BlackRock’s Dunne Chief Capital Officerby
Dunne to work with investors, retail distribution partners
CEO Sanborn affirms commitment to investors with Dunne’s hire
LendingClub Corp., the online lending platform whose founder and chief executive officer resigned in May, named Patrick Dunne chief capital officer as the company seeks to restore investor confidence.
Dunne, who previously led BlackRock Inc.’s San Francisco office, will work with LendingClub investors and retail distribution partners, the company said Monday in a statement.
LendingClub is seeking to reverse a stock slump and win back bond buyers rattled by the departure of Renaud Laplanche, who stepped down as CEO. Internal reviews found that staff had altered application dates on $3 million of loans before their sale, and Laplanche failed to disclose his interests in a fund that LendingClub was considering investing in. Scott Sanborn, who took over as CEO, needs to attract fixed-income investors to back securities tied to loans originated on his platform.
The addition of Dunne, who has about 25 years of investment experience, is “another step toward the re-establishment of stability,” Mark Palmer, an analyst at BTIG , said in a note to clients. He will focus on convincing investors who had been leery of LendingClub “to return to the platform, while also attracting new sources of capital to fuel loan growth.”
Dunne replaces Jeff Bogan, who also left amid the turmoil at the company. Bogan oversaw efforts to sell more loans to institutional and retail investors, as well as financial firms.
“Patrick’s wealth of experience and diverse background across capital markets, strategy, portfolio management, product development and client service will help us drive the next phase of Lending Club’s growth,” Sanborn said in the statement. “Patrick will play a key role in reaffirming our continued commitment to our investors.”
Jefferies Group is again considering selling bonds tied to LendingClub consumer loans after scuttling an effort amid the shakeup there. Many investors are conducting due-diligence checks and have said they may purchase more loans, although maybe initially at muted levels, the CEO said in June.
Dunne’s plan to depart from BlackRock was announced earlier this year. He had worked for Barclays Global Investors before BlackRock acquired it. Dunne has a bachelor’s degree from the University of California at Berkeley and a master’s in management from the Stanford Graduate School of Business, according to the statement from the San Francisco-based company.
LendingClub shares traded for $4.49 at 9:37 a.m. in New York, unchanged from Friday’s closing price. That’s down 59 percent since Dec. 31.