OakNorth has secured £154m (€172.7m) in investment from The Clermont Group, Toscafund and Coltrane. The three investors have purchased a stake of around 16 per cent in the challenger bank.

The capital will enable OakNorth to continue supporting UK businesses with loans of between £500,000 to £20m.

In 25 months, OakNorth has grown its loan book to over £800m with clients including LEON, Galliard Homes, Frogmore, Brasserie Blanc, Strawberry Star and The Collective. Its loans have directly helped with the creation of over 3,000 new homes and 2,000 new jobs in the UK, as well as adding £3bn to the UK economy.

“We’ve had the chance to work with some of the UK’s most inspiring and ambitious entrepreneurs, and have helped over 150 businesses achieve their growth ambitions,” said Rishi Khosla, chief executive officer and co-founder of OakNorth.

“While we have reached an £800m loan book in two years, we know that this represents just a fraction of the businesses that need financing support. This funding will enable us to boost our lending by an additional £1.5bn and add thousands more jobs and homes in the UK.”