Date: November 11, 2024, 03:42h.
Last updated on: November 11, 2024, 03:42h.
Jason Ader, the founder of a blank-check company that tried to take the Okada Manila casino resort public, is traveling around the world while dealing with legal battles – including one from his own mother – as investors in his hedge fund demand their money back.
The CEO of Spring Owl Asset Management recently sent a letter to investors detailing a challenging period for the fund, mentioning difficulties with liquidating assets related to 26 Capital Acquisition Corp. and GameCo. Ader had issues obtaining a Nevada gaming license related to GameCo, a company that produces gaming devices blending luck and skill.
Both investments were structured as loans, and the circumstances surrounding each have contributed to the complexity of the wind-down,” wrote Ader in the client letter. “We anticipate that write-downs are likely.
This suggests that the value of these investments will be significantly reduced, potentially resulting in losses for Spring Owl investors. 26 Capital was dissolved in September 2023 after a court ruling prevented a proposed merger with Okada Manila parent Universal Entertainment.
Ader’s Lavish Lifestyle Amid Investor Concerns
While facing a lawsuit from his mother over a defaulted mortgage and as investors worry about fund returns, 56-year-old Ader has been seen globe-trotting with his younger girlfriend.
The couple has been spotted in Miami and recently visited France, including stops at the Summer Olympics in Paris and in the resort city of Nice. Ader’s private Instagram account indicates they later traveled to the Bahamas.
These travels occurred after a court reprimanded Ader for failing to pay child support to the mother of his four children, according to The Post.
Through his attorney, Ader denied claims of asset liquidation at Spring Owl and asserted that reports of turmoil at the hedge fund are untrue. However, investors are increasingly anxious about recovering their original investments, and the departure of two top executives in 2023 has heightened their concerns.
The Delaware court ruling regarding the failed merger with Okada Manila could result in significant losses for Spring Owl, impacting Ader and other investors.
The original deal valued the Filipino casino operator at $2.6 billion, potentially generating substantial profits for 26 Capital investors, including Ader.
Ader’s Strong Ties to the Gaming Industry
Before founding his own company, Ader was a gaming and lodging analyst at Bear Stearns. He was recognized as the best in his field for ten consecutive years by Institutional Investor. Ader also served on the board of Las Vegas Sands from 2009 to 2016.
In 2015, he orchestrated the acquisition of online gaming firm Bwin.party, now known as Entain Plc. In 2018, SpringOwl Asset Management acquired a stake in gaming software provider Playtech before the firm became a popular takeover target.
Ader envisioned taking Okada Manila public in the US to pursue additional casino licenses in the US and Japan.