😓 Soho House needs this IPO

Soho House has less money, mo problems | Blackstone makes itself at home | [Finimize]( Hi {NAME}, here's what you need to know for June 23rd in 3:06 minutes. 📈 We’re always interested in how you’re investing, as well as where you think markets are headed in the next few months. So it’s time for our second casual investor survey. Go on, it’ll only take a couple of minutes. [Take the survey]( Today's big stories - The company behind Soho House has filed for an initial public offering despite a track record of losses - It’s almost earnings season again, and there’s a good way to tell which inflation-proof companies will come out swinging – [Read Now]( - Private equity giant Blackstone announced it’d be buying a real estate firm for $6 billion That’s Rich [That’s Rich] What’s Going On Here? Membership Collective Group (MCG) filed for a US initial public offering (IPO) this week, but the owner of Soho House members clubs looks like it has champagne tastes on a beer budget. What Does This Mean? MCG has been busy: the company owns a home decor retailer, nine workspaces in London, LA, and New York, and 28 Soho House members clubs around the world. The latter boast 119,000 members who each shell out a regular membership fee, as well as pay for food, drink, and other services at their venue of choice. But not enough, apparently: the company saw its revenue slip from $642 million in 2019 to $384 million last year. Add to that a $235 million loss in 2020 and a $91 million loss in the first quarter of this year, and suddenly it’s not looking so fancy anymore. MCG, then, will be hoping investors give it a pass what with this anything-but-average last 18 months, and instead buy into its potential for future growth. Why Should I Care? For markets: That’s a lot of debt. Investors buying into the IPO are essentially betting that Soho House will benefit now that fatcats are donning their going-out monocles again. They might also point to flexible working, which could give revenue at Soho House’s workspaces a boost. But the risks are serious: the company has $826 million in debt, which it plans to pay off using most of the money it raises from the IPO. That’ll leave very little left to invest in actually growing the business… Zooming out: This time it’s different. Anything the US can do, Iceland can do better: shares of bank Islandsbanki started trading on Tuesday in the country’s biggest-ever IPO. It feels like just yesterday when Iceland’s biggest banks were being wiped out by the financial crisis, so here’s hoping things work out better this time around. And seeing as Islandsbanki’s shares initially jumped 20%, it’s off to a good start. You might also like: [Three ways to tell if MCG’s IPO will be a success.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=That’s Rich&utm_campaign=daily-global-23-06-2021&utm_source=email) 2. Analyst Take How To Spot This Earnings Season’s Inflation-Proof Winners What’s Going On Here? Earnings season is on the way, and you can bet plenty of companies will have felt the effects of the rising prices of energy, metals, and agriculture. Those price rises have, after all, been pushing up the costs of [everything from production to transport](. And sure, most investors already know [which companies are relatively safe](. Utilities, for example, are in a position to pass the higher costs straight on to customers. But there are other, less obvious companies and sectors that are relatively impervious to commodity-driven inflation – those with [one particular feature in common](. That’s today’s Insight: how to tell [which companies will benefit from commodity price inflation](, along with a list of those that are in the best and worst positions. [Read or listen to the Insight here]( SPONSORED BY ISTOX Your ticket to the world’s private markets It’d be nice if you had [access to private markets](: you know, the places where the pros trade. But short of becoming a professional yourself, it’s been next to impossible. Not anymore: [ADDX]( gives you access to private markets, and affordable access at that. The minimum investment’s just $10,000. ADDX offers[fractional ownership]( of private market products – things like hedge funds, wholesale bonds, and private unicorns. So you can own a slice without buying the whole pie. And you won’t have to deal with lock-ups either: you can [cash out instantly]( at any time. Discover your private market options: [visit ADDX today](. [Find Out More]( Second Home [Second Home] What’s Going On Here? Blackstone – one of the world’s biggest real estate investors – announced on Tuesday that it was spending $6 billion on the keys to residential landlord Home Partners of America (HPA). What Does This Mean? HPA owns more than 17,000 single-family homes across the US, buying would-be tenants’ properties of choice and offering them the chance to eventually become owners themselves. And homes are a hot market right now: sales activity hit its highest level since 2006 last year, with remote working and rock-bottom interest rates sending demand for bigger living spaces through the roof. Median prices, meanwhile, have increased by [28%]( since 2019. That’s attracted the attention of big investors, which snapped up 15% of US homes for sale in the first quarter of 2021. Blackstone – which bought HPA from two rival [private equity]( firms – will be hoping that trend continues, turning the firm a tidy profit when it sells HPA to either other private or public investors. Why Should I Care? The bigger picture: Bad call or good call? Private equity investors – which have over [$1.5 trillion]( burning a hole in their pockets – have a reputation for sniffing out opportunities. And if the current US housing [shortage]( takes a decade to fix like some analysts are predicting, the firm could ride the residential real estate wave for a while yet. But the global housing market is showing the telltale signs of a [bubble](, and Blackstone’s big move could just as likely be a rash call ([tweet this](). For you personally: This could affect the whole real estate market. Private equity firms have a reputation for bumping up prices to generate as much cash as quickly as possible. And while HPA’s portfolio represents just 0.25% of single-family homes in the US, higher rents and home prices from Blackstone could encourage other residential real estate owners to follow suit – making it harder for tenants and buyers alike across America. You might also like: [So should you buy a home now or just keep renting?]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Second Home&utm_campaign=daily-global-23-06-2021&utm_source=email) 💬 Quote of the day “I see my body as an instrument, rather than an ornament.” – Alanis Morissette (a Canadian-American singer, songwriter, musician, and actress) [Tweet this]( SPONSORED BY GRAYSCALE The simple way to invest in ether You’ve seen crypto’s rise this year: it’s been mentioned [everywhere](. But between buying, storing, and safekeeping, investing in crypto can be a challenge. You can buy into ether without having to own it directly, though, with Grayscale Ethereum Trust. It’s a fund that [invests solely in ether]( – one you can purchase as you would a stock. That means you can hold a stake in the world’s second-largest digital currency, minus most of the challenges: [no wallets, no private keys, no headaches](. Grayscale’s trust goes by the symbol: ETHE, and you can access it [straight from your brokerage account.]( Check out [Grayscale Ethereum Trust today](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar - What’s this DeFi thing everyone’s talking about? [The School of Block]( reckons you’ll never need to visit a bank again.* - Long live the Queen. So long as [swords and cakes]( are involved. - Power to do good. What if social media actually [served]( the public interest? - Tech isn’t the be-all and end-all. The [climate crisis needs culture](. - Electrify your IT, beat the competition. Get tech support that works – [and a free pair of Beats](.* When you support our sponsors, you support us. Thanks for that. ❤️ Share with a friend Your Referrals: 0 Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag. 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