The investment – along with Masthaven’s existing capital base – will enable the bank to significantly increase lending to consumers and SMEs over the next three to five years.

It will also allow Masthaven to provide innovative deposit solutions. 

Andrew Bloom, founder and CEO at Masthaven (pictured above), said it had chosen a strategic partner for the next phase of its banking journey.

“Our original investors remain committed to the bank – what Värde Partners brings to the table is the commitment, experience and firepower to take us to the next level. 

“Masthaven has made tremendous strides in the past few years and, since our launch of the bank two years ago, we have successfully launched specialist residential and buy-to-let mortgages plus bolstered our savings suite by entering the SME savings market, all while growing our team to above 170 people and generating over £500m of deposits. 

“Now it’s time for us to further enhance our propositions for both our existing customers and intermediary partners as well as our future clients.”

Elena Lieskovska, senior managing director and head of European specialty finance at Värde Partners, added: “Masthaven is an exciting brand in the UK challenger bank scene and we’re thrilled about the opportunity to work together to hone the bank’s proposition and to take it to the next level. 

“At Värde, we are active in our portfolio companies, favouring the partnership approach to creating value, and that’s exactly how we expect to work with the Masthaven team.”