Soho House has announced plans to go private in a $2.7 billion acquisition organized by MCR Hotels. The deal will offer shareholders $9 per share, a 17.8% premium over the company’s recent closing price, and has already caused shares to jump sharply in early trading. Once completed, the move will transition Soho House from a public company to a privately held one – solidifying decisions under closer control and away from the scrutiny of quarterly earnings cycles.
New Leadership & Strategic Direction Post-Privatization
Key changes accompany this acquisition. Actor and tech entrepreneur Ashton Kutcher will take a seat on the board, bringing visibility and digital insight. At the same time, Neil Thomson has been named Chief Financial Officer, stepping in for outgoing executive Thomas Allen. Notably, founder Nick Jones and investor Ron Burkle’s firm Yucaipa will retain approximately three-quarters of the company’s ownership, maintaining influence over strategic direction. Funding for the deal includes significant support – roughly $850 million – from affiliates of Apollo Global Management, using a structured combination of debt and equity financing.
Looking Beyond the Public Markets
Soho House’s leadership sees this privatization as a chance to refocus the brand away from the volatility of public trading. Over the past few years, rapid expansion across Europe, North America, and Asia diluted its exclusive image, while changing consumer spending habits have weighed on revenue. One financial strategist noted that celebrity branding and aggressive growth alone won’t sustain a lasting future without sharper strategic direction. By going private, Soho House can reposition itself, fast-track investments, and realign with its membership ethos – free from the pressures of earnings season.
Supporters of the deal include hedge fund manager Daniel Loeb, whose firm holds nearly 10% of ownership. Loeb praised the move and emphasized his confidence in the firm’s leadership, while Apollo leaders suggested Hybrid financing – a mix of equity and debt – allows them to invest in situations that would otherwise fall outside their standard underwriting. The deal exemplifies the broader appeal of private ownership in times of economic uncertainty – where long-term vision can outweigh short-term stock market performance.
