Big Law checks in for $2.7bn Soho House buyout with Ashton Kutcher cameo

A raft of big-name firms have checked in for the $2.7 billion buyout of Soho House - the private members’ club group that went public in New York in 2021 and is now headed back into private ownership (with a little Hollywood star power).

The investor group is led by Tyler Morse, CEO of US hotel group MCR, which is the third largest hotel owner-operator in the US. Last year, MCR bought London's iconic BT Tower with plans to convert it into a luxury hotel (HSF and AG landed lead roles on that deal). Morse will join the board as vice chair, but Soho House executive chairman Ron Burkle and his private equity firm Yucaipa will keep majority control.

Existing heavy-hitting shareholders - including British restaurant tycoon Richard Caring, founder Nick Jones and Goldman Sachs’ investment arm - will roll the majority of their stakes into the new company.

Adding to the cast list is Ashton Kutcher, who is leading a consortium that will inject fresh equity. The actor-turned-tech investor is also set to take a board seat once the deal closes. PE giant Apollo is playing financier, providing more than $700 million in debt and around $150 million in equity, according to Bloomberg.

Advising

Sidley Austin is advising Soho House, with a transatlantic team including New York partners Sam Gandhi, John Butler and Ayo Badejo, alongside London global finance partner Ben Wright.

The Soho House board’s special committee of independent directors is being advised by Fried Frank, led by New York partners Alison McCormick and Philip Richter.

Gibson Dunn is acting for Apollo on both the debt and equity financing, with New York corporate partner Michael Saliba leading the deal team.

HSF Kramer is advising Richard Caring on his rollover stake with a team including US ECM head Todd E. Lenson.

Paul Weiss is advising Ashton Kutcher and his consortium of investors, with New York corporate partners Robert Kindler, Laura Turano and Nickolas Bogdanovich at the helm.