Billionaire Ron Burkle Saves Soho House Privatization

The plan to take Soho House private for $2.7 billion appeared on the verge of collapse last week after lead equity partner MCR Hotels said it could no longer provide the $200 million closing commitment it had previously pledged. But the deal revived when controlling shareholder Yucaipa Companies, managed by billionaire Ron Burkle, secured alternative funding, according to a new SEC filing.

A key piece of the rescue came from Morse Ventures, an entity owned by MCR CEO Tyler Morse, which added a fresh $50 million equity commitment on top of the $50 million it had already agreed to contribute, Bisnow reported. Soho House & Company, a chain of private clubs and hotels catering to the media and fashion industries, currently trades its shares on the New York Stock Exchange.

In the revised finance deal, Soho House will generate another $50 million through an amended rollover stock agreement and raise roughly $220 million by expanding its unsecured note facilities. Meanwhile, Apollo Global Management, MCR’s partner in the transaction, reduced its equity commitment from $50 million to $30 million.

The market reacted swiftly. Soho House shares jumped nearly 13 percent after Wednesday’s close, recovering most of the value lost following the Jan. 8 disclosure that the original funding package had fallen apart.

Despite the turbulence, shareholders remained committed to the transaction. Filings with the Security & Exchange Commission show that an overwhelming majority voted Friday morning to approve the merger and take the company private — just one day after the initial financing structure collapsed.

Soho House, MCR and Apollo did not comment to Bisnow.

Founded in 1995 by restaurateur Nick Jones, Soho House has grown to 50 locations, including clubs in New York, Miami and Los Angeles. It went public in 2021.

The privatization deal, first announced in December 2024, was expected to close within a year. Yucaipa is the investment firm of Los Angeles-based billionaire Burkle, who serves as executive chairman at Soho House. According to CNN, Yucaipa and Jones together own about three-quarters of Soho House shares.

– Joel Russell