Cabot Square Capital the private equity house is splashing out £325m to buy The Money Store.
The London-based house moved in to snap-up the sub-prime lender after buy-out talks between The Money Store and its arch rival Kensington Mortgage Company collapsed in June.
The Money Store which is valued at £425m was put-up for sale in May by its US parent First Union after it under performed and failed to establish a presence in the market despite a high profile television advertising campaign featuring comedian Paul Merton.
First Union which itself ran into financial difficulty earlier this year will retain control of The Money Store's US operation.
Cabot Square Capital in which Credit Suisse First Boston is a major investor believes there are significant growth opportunities in the sub-prime market.
It is predicting the economy will continue to grow and people who have had financial difficulties will find the confidence to take out mortgages causing a boom in the sub-prime market.