Soho House
Thesis
The senior secured 2018 bonds of Soho House offer a compelling risk-adjusted return due to the stable, recurring revenue nature of the business, which has a growing member base and low churn. Despite being perceived as highly leveraged, the company is in a growth phase that underrepresents its true earnings power, making the current yield of approximately 8% attractive given the business's quality and short duration.
Did it work?
Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the investment thesis has played out. The thesis suggests a stable and growing business, but without evidence of price movement or confirmation of the company's performance, the outcome remains uncertain.
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