The lender said the equity investment, along with its existing capital base, will enable it to significantly increase lending to consumers and SMEs over the next three to five years.
It will also provide further deposit products.
Masthaven founder and CEO Andrew Bloom, said: “Masthaven has made tremendous strides in the past few years.
“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 with a balance sheet in excess of £750m.
“Now it is time for us to further enhance our propositions for both our existing customers and intermediary partners as well as our future clients.
“Masthaven will deploy the Värde Partners investment to bring more capacity to the UK market and enable us to innovate in terms of both our savings and lending propositions,” he added.
Next phase in journey
The agreement was announced in September 2018.
Elena Lieskovska, partner and head of European financial services at Värde Partners, said: “Masthaven is a rising brand in the UK challenger bank scene and we’re thrilled about the opportunity to work together to enhance 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 William Pears Group backed Masthaven Finance since 2011 along with the launch of Masthaven Bank in 2016.
It said it was pleased to welcome Värde Partners as a new investor and looked forward to them being part of the next phase in the journey.