Struggling homebuilder Standard Pacific Corp. received a vote of confidence in the form of a $530 million investment from private equity group MatlinPatterson Global Advisers LLC on Tuesday, sending its shares up nearly 50 percent.

Shares of Standard Pacific rose $1.09, or 49.10 percent to close at $3.31.

Before the full effect of the housing crisis hit Standard Pacific last at the beginning of last year, its stock was valued at $22.79, more than 80 percent of what it is worth today.

This capital infusion will strengthen our balance sheet, enhance our financial flexibility and provide funding for future growth opportunities, said Jeffrey Peterson, Standard Pacific's chairman, chief executive and president.

Along with its investment, MatlinPatterson will also get influence on the company's board of directors, according to statement from Standard Pacific.

Matlin Patterson will be entitled to appoint three additional board members, expanding the board from the current eight members. It will also be allowed to appoint others but MattlinPatterson designees will not constitute a majority under the agreement.

Under the terms of the deal, Matlin Patterson will buy $381 million of convertible stock, or 125 million shares at $3.05 per share. The firm also said it would exchange about $128.5 million of senior and subordinated debt for warrants to acquire preferred stock at $4.10 per share.