Soho House has secured new financing to complete its $1.8 billion take-private deal, stabilizing a transaction that was thrown into doubt just weeks ago.
The London-based private members’ club group said it has now secured alternative financing to cover a $200 million deficit, paving the way for a consortium led by MCR Hotels to complete the takeover.
In a regulatory filing, Soho House confirmed that Morse Ventures, owned by MCR Hotels CEO Tyler Morse, will provide a $50 million equity commitment. MCR itself will also inject an additional $50 million in equity as part of its original agreement.
The remaining funding was secured through changes to the group’s debt structure and shareholder agreements. Soho House has amended its financing package with Apollo and Goldman Sachs, increasing its senior unsecured note facility from $150 million to $220 million. As part of the restructuring, Apollo’s equity capital commitment was reduced from $50 million to $30 million.
The latest $50 million gap was closed after major shareholders agreed to transfer their equity rather than take cash, reducing the total financing required to complete the transaction.
The revised structure follows a turbulent period for the company. Earlier this month, Ron Burkle’s investment firm Yucaipa announced that MCR, previously a key backer, would be unable to meet its entire equity commitment by the expected closing date. That announcement sent Soho House shares plunging nearly 10 percent and raised questions about whether the deal would fall through.
The takeover was agreed in August when an investor group led by MCR Hotels offered $9 a share to take Soho House private, valuing the company at $1.8 billion. The consortium agreed to acquire the shares not already held by four major shareholders who chose to transfer their existing shares.
The takeovers include Nick Jones, who owns around six percent of the company, the restaurateur Richard Caring and Goldman Sachs Alternatives, which is also providing additional capital. The investor group also includes actor and investor Ashton Kutcher.
Soho House, founded 30 years ago, has grown to 46 clubs worldwide but has struggled as a publicly traded company since it went public in New York in 2021 at $14 a share. The stock has fallen nearly 30 percent in five years, reflecting tougher economic conditions and investor concerns that the brand’s once-strong sense of exclusivity was beginning to wane.
With funding now secured, the company plans to proceed with completion, marking the end of a volatile chapter as a listed company and a return to private ownership.
