Soho House secures £81m injection
Ron Burkle, the US billionaire who is Soho House’s biggest investor, led a group comprising new and existing shareholders in providing the new money in recent weeks, according to Sky News.
The investment was made at the same $2bn valuation at which the company raised $100m late last year.
Many of the group’s sites have reopened as overseas governments have eased lockdown restrictions, with its UK clubs and hotels hoping to resume trading early next month, in line with government guidance.
Soho House now has around 110,000 members, with retention reportedly improving during the pandemic. The group has offered credits against membership fees to spend on other Soho House products.
Its expansion has been facilitated by a series of deals, including the sale by founder Nick Jones of a controlling stake in the company to Richard Caring in 2008.
That transaction valued the company at about £130m, with a subsequent takeover by Ron Burkle, a Californian supermarket billionaire, four years later attributing a £250m price tag to Soho House.
Jones and Caring have remained as shareholders since then, with the former continuing to run the business as its chief executive.
Last October, it announced a further $100m fundraising led by Raycliff Capital, an investment firm, with participation from Simon Property Group.
Reopened sites in Hong Kong and Malibu have reportedly performed strongly in recent days, providing evidence of “demand and bounce-back” from coronavirus.
A Soho House spokesman said this weekend: “We have secured additional equity funding as a follow-on to last year’s equity investment, which underlines the $2bn valuation of Soho House.
“It is led by Ron Burkle personally, and shows his belief in the business.”
Last year, it reported turnover for 2018 of £432.5m, a rise of 20%.
Membership subscriptions accounted for just under 25% of the total, with food and beverage sales up 20% to £190.5m.
