Dan Baker
Ajax Financial Alternatives
SPACs Launched
4
Total Raised
$1.2B
Avg Investor Return
-61.0%
Bankruptcies
0
Summary
Ajax Financial launched multiple SPACs during the boom, with the Cazoo deal being the most notable — and disastrous. Cazoo, a UK used car platform, went public at a $7B valuation and later delisted after losing over 97% of its value. Ajax sponsors collected their promotes while investors were left holding the bag.
SPAC Track Record
The Sponsor Economics
As a SPAC sponsor, Dan Bakerreceived a "promote" — typically 20% of the post-merger company's shares — for a nominal investment of roughly $25,000. Across 4 SPACs raising $1.2B, the promote shares were worth hundreds of millions at IPO prices, regardless of whether the merged companies performed well for public investors.
While investors saw an average return of -61.0%, the sponsor structure ensured that Dan Baker profited from the deals regardless of outcome — a fundamental misalignment of incentives that defined the SPAC era.