Coworking startup Second Home has entered administration, with senior managers agreeing to acquire the business to save it from collapse.
Founded in 2014 by Rohan Silva, one-time policy advisor to former UK prime minister David Cameron, Second Home’s colourful workspaces were once a popular meeting spot for London’s tech elite, but the company struggled to maintain momentum after years of losses.
In 2022, Silicon Valley billionaire Riaz Valani became the majority shareholder in Second Home after investing £7.8m via his private equity firm Global Asset Capital.
But in a statement shared with Sifted on Tuesday, the company said it had entered administration and been acquired through a management-led buyout.
“This was our only option to keep the company alive,” said CEO Jamie Apostolou in a statement shared with Sifted on Tuesday. “Second Home remains a strong brand, and our values haven’t changed. We are excited to focus on providing an inspiring environment and strong community for individuals and businesses.”
Second Home will continue operating coworking spaces at its Spitalfields, Holland Park and Lisbon locations. Second Home did not respond to a request for comment regarding the terms of the deal.
Rise and fall
Since launching over a decade ago, Second Home has raised more than £60m from backers including European VC firms Index Ventures and Atomico, as well as LocalGlobe cofounder Robin Klein, president of Tencent Martin Lau and Israeli billionaire Yuri Milner.
But following years of losses, Silicon Valley billionaire Riaz Valani stepped in to acquire Second Home in a cut-price rescue deal in October 2022.
Revenue fell from a high of £9.8m in 2019 to £6.6m in 2021, according to its most recent financial accounts for that year (the company is nearly a year overdue on more recent accounts). Losses hit £13m in 2021, down from a high of £22.7m the previous year.
Valani put in £7.8m for the controlling stake via his private equity firm Global Asset Capital — a huge markdown from the £130m valuation Second Home held in 2019.
Since that acquisition, the company has closed several locations, including Los Angeles, London Fields and Clerkenwell Green. Silva was replaced as CEO by COO Jamie Apostolou in February 2024.
“Historical debt led to the decision to file for administration and pursue a pre-pack sale led by management,” the company said in a statement.
Read the orginal article: https://sifted.eu/articles/second-home-administration-buyout/
