Soho House Lands $200M Just in Time, Saves $2.7B Go-Private Deal

Soho House and Co. has secured approximately $200 million in alternative financing commitments to keep its $2.7 billion go-private transaction moving forward. The deal, first announced in August 2025, is now targeted to close by January 31, despite a late disruption to the original funding plan.

Lead investor funding gap

The new financing follows a setback last week, when MCR Hotels, the lead investor in the transaction, confirmed it would be unable to fund its planned $200 million equity contribution by the expected closing date.

MCR Hotels is a New York-based hospitality operator with a portfolio of more than 150 properties, and its withdrawal posed a significant risk to the deal’s completion.

Now, with the revised financing package in place, Soho House aims to complete the deal as planned, stabilizing its ownership structure and moving forward as a private company.

Revised funding structure

To bridge the gap, MCR Chairman and CEO Tyler Morse contributed $50 million through a newly formed entity, Morse Ventures. The remaining capital is being sourced from unnamed investors, as disclosed in Soho House’s filing with the Securities and Exchange Commission.

These changes allow the transaction to preserve its original $9 per share valuation, which is supported by controlling shareholder Yucaipa, led by Ron Burkle, alongside Apollo’s hybrid debt and equity financing.

Goldman Sachs Alternatives is also backing the transaction and is expected to provide further funding.

Photo by Daniel Gynn on Unsplash