Dan Loeb and his activist hedge fund Third Point are questioning a bid backed by fellow billionaire Ron Burkle to take the club private.

Third Point revealed in a filing Wednesday that it had taken a 9.9% stake in Soho House. Loeb wrote a letter to Soho House's board about his critique of the buyout, which he called a "sweetheart deal," according to Reuters and The Wall Street Journal.

Daniel Loeb, who runs hedge fund Third Point, on Wednesday urged SoHo House directors to run a "fair" sales process and consider other potential bidders after the hospitality group received a take-private offer late last year.

Dan Loeb, who runs hedge fund Third Point, on Wednesday urged Soho House directors to run a “fair” sales process and consider other potential bidders after the hospitality group received a take-private offer late last year.