Daniel Loeb Exits Entire Position in Soho House & Co Inc with $8.78 per Share Sale

Daniel Loeb's firm, Third Point LLC, has sold out its entire position in Soho House & Co Inc, a membership platform company, resulting in a change of -5,171,676 shares. The sale was executed at a price of $8.78 per share, with the stock experiencing a 0.57% gain since the transaction. Soho House & Co Inc has a market capitalization of $1.72 billion and a stock price of $8.83. The company has shown a 24.10% revenue growth over the past three years but has a GF Score of 65/100, indicating poor future performance potential.

Daniel Loeb's firm, Third Point LLC, has sold out its entire position in Soho House & Co Inc, a membership platform company, resulting in a change of -5,171,676 shares. The sale was executed at a price of $8.78 per share, with the stock experiencing a 0.57% gain since the transaction. Soho House & Co Inc has a market capitalization of $1.72 billion and a stock price of $8.83. The company has shown a 24.10% revenue growth over the past three years but has a GF Score of 65/100, indicating poor future performance potential.

The sale of shares by Third Point LLC comes amidst significant changes in the ownership and strategy of Soho House & Co Inc. In 2025, the company was acquired by a consortium led by MCR Hotels and Apollo Global Management in a $2.7 billion deal [1]. The buyout, which valued the brand at an 18x EBITDA multiple, reflects a broader trend of private equity's growing appetite for premium lifestyle brands that blend exclusivity, recurring revenue, and scalable margins.

The acquisition, led by MCR Hotels, leverages its operational expertise in luxury hospitality and cloud-based software to enhance Soho House's digital transformation and global expansion. The transaction's hybrid capital structure ensures flexibility for growth while reducing leverage from 18.08x to industry-median levels. This approach contrasts with the aggressive leveraged buyouts of the early 2020s, emphasizing capital discipline and long-term value creation [1].

The Soho House buyout is emblematic of a larger trend: private equity's pivot toward intangible assets that cater to the post-pandemic demand for curated experiences. Consumers, particularly high-net-worth individuals, are prioritizing access over ownership, favoring brands that offer exclusivity, personalization, and community [1].

However, the company faces several challenges. The high leverage ratio exposes it to interest rate volatility and refinancing pressures. Additionally, scaling exclusivity without diluting brand identity poses challenges. The planned openings in São Paulo and Rome require careful execution to maintain the brand's aspirational appeal [1].

The appointment of actor and investor Ashton Kutcher to the Soho House board is seen as an effort to refresh the brand's relevance and amplify its appeal to younger, affluent consumers. Known for his early investments in companies like Airbnb and Spotify, Kutcher brings more than star power, having established himself as a serious technology and consumer brand investor. His presence on the board is expected to aid Soho House’s strategic positioning, especially as it navigates new digital and experiential initiatives [2].

The future of Soho House & Co Inc remains uncertain. The company's financial performance, while showing revenue growth, is indicated by its GF Score of 65/100, suggesting poor future performance potential. The market's reaction to the sale of shares by Third Point LLC and the company's ability to navigate the challenges ahead will be crucial in determining its future trajectory.

References:
[1] https://www.ainvest.com/news/soho-house-buyout-future-premium-lifestyle-exclusivity-2508/
[2] https://retail-merchandiser.com/news/ashton-kutcher-joins-soho-house-board-after-2-billion-buyout/