Aldermore has raised £40 million of new capital from institutional investors Toscafund and Lansdowne Partners.

The new funding was initiated and managed by its founding sponsor, AnaCap Financial Partners LLP.

The new funds will enable Aldermore to continue to meet the strong demand for its accounts and services from both retail customers and small to medium sized enterprises (SMEs).

The ‘challenger bank’ now has over 100,000 retail customers, with deposits exceeding £3.3 billion and lending to SMEs and homeowners reaching £3.4 billion.

It also recording a profit of £9.2 million in the first half of 2013 and is expecting to post improved profits for the year end.

Aldermore’s CEO, Phillip Monks, said: “I am delighted by the investor appetite for Aldermore and eager to continue to provide straightforward financing solutions to UK SMEs and households. The new funds provide us with the opportunity to do even more to champion Britain’s small businesses, the lifeblood of our economy. Our strong capital position also enables us to look at a number of new product and service launches to further meet the needs of our customers.

“I would like to thank all our investors for the confidence they have shown in Aldermore as we strive to do things differently.”