The bank said it will use the money to increase its lending to consumers and SMEs in the next three to five years.
Masthaven has signed an agreement with Värde to invest £60m in the specialist bank.
The bank will use the money to increase its lending to consumers and SMEs in the next three to five years.
Andrew Bloom, Masthaven’s founder and chief executive, said: “In Värde Partners we have chosen our strategic partner for the next phase of the continued journey of Masthaven bank.
“Masthaven will use the investment to bring more capacity to the UK market and enable us to innovate in terms of both our savings and lending propositions.
“We believe a company is only as good as the people it hires. As such, it was incredibly important for us to respect our employees’ share ownership and select a partner who has the same core values.”
Värde Partners is a $14bn global alternative investment firm with more than 20 years of experience investing in consumer and commercial credit in the specialty finance sector.
Elena Lieskovska, senior managing director and head of european specialty finance at Värde Partners, said: “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.”
The transaction is subject to regulatory approval from the Bank of England.
