The house builder, formerly called Gladedale until it was rebranded last year, will now come under the control of Alchemy Special Opportunities, Angelo Gordon and Avenue Capital.

Avant Homes operates under the Ben Bailey brand in the Midlands and Yorkshire and Bett Homes in Scotland and the North East of England.

Lloyds inherited Avant after the 2009 takeover of HBOS. The bank recruited Rothschild to sell the company at the end of last year.

Following the investment by the hedge fund consortium, Avant chairman Keith Hamill and chief executive Neil Fitzsimmons will be standing down.

Colin Lewis (above), who has driven Avant’s transformation and growth as group chief operating officer, will become group chief executive.

Paul Bridges, Senior Adviser to Alchemy, will become Chairman.

Lewis said: “This is a significant step forward for Avant. Today’s investment, by a consortium of highly-respected investors who share our vision for the business, not only reflects the exciting opportunities for growth available to us, but also gives us the platform to make the most of those opportunities.

“The Avant team is looking forward to growing the business significantly, as we build on our unrivalled positioning provided by our differentiated product offering and our attractive landbank, in which we have been investing heavily. Our ambition is to become the premier house builder in the North.

“I would like to thank Lloyds Banking Group for its support for Avant since its restructuring in 2009.”

Rothschild acted as financial adviser to the Group on the transaction.