The firm says the additional capital invested in the business will facilitate continued growth through systems and service development.
Grant Hawkins, previously executive chairman, takes a new role as a non-executive director and retains a material shareholding in the business.
Target Group recently improved its Standard & Poor’s servicer rating of Above Average.
James Rudolf, group managing director of the Target Group, says: “This investment marks the start of another exciting chapter for Target which will benefit both existing and new customers.”
Lindsey McMurray, head of the equity finance division of RBS Asset Management, says: “We are delighted to be investing in Target. Its track record of delivery and first class client base are an excellent launch pad for further growth. We believe that the financial services outsourcing and software markets have great potential. This investment fits our strategy of backing high quality, growth focussed businesses.”