365NEWSX
365NEWSX
Subscribe

Welcome

Leon Black to Step Down as Apollo's C.E.O. After Firm Finds More Payments to Jeffrey Epstein - The New York Times

Leon Black to Step Down as Apollo's C.E.O. After Firm Finds More Payments to Jeffrey Epstein - The New York Times

Leon Black to Step Down as Apollo's C.E.O. After Firm Finds More Payments to Jeffrey Epstein - The New York Times
Jan 25, 2021 2 mins, 13 secs

An inquiry’s finding that Leon Black, the billionaire boss of Apollo Global Management, paid the convicted sex offender $158 million touched off an attempt to remove him.

The founders of Apollo Global Management, one of the world’s biggest private equity firms, engaged in a brief power struggle this weekend over control of the firm, a rift that opened up after an inquiry revealed that one founder — Apollo’s chief executive and chairman, Leon Black — had paid more than $150 million to the convicted sex offender Jeffrey Epstein.

Black announced his plan to step down as chief executive this year.

Black had paid Mr.

Epstein more than $30 million, only $10 million of which was paid back, the report found.

Black viewed as a “confirmed bachelor with eclectic tastes,” according to the report — in the years after his 2008 guilty plea in Florida to a prostitution charge involving a teenage girl.

Epstein had “served his time” for that case and deserved a second chance, the report said.

Black, according to the report — created friction between Mr.

Black and one of Apollo’s other founders, Joshua Harris, according to three people briefed on the discussions.

Apollo’s board held a videoconference on Sunday to approve the findings of the review, according to two people briefed on the discussions.

Black also announced his plans to step down this year and hand over the chief executive job to Marc Rowan, Apollo’s third founder.

Black should relinquish the chief executive role without delay, the people said.

Harris also made his case to his co-founders that night in discussions with Apollo’s executive committee — which consists of the three of them.

Black informed Apollo’s clients of the succession plan and the findings of the review in a letter on Monday evening.

The two men did not communicate after 2018, according to the review.

Many of Apollo’s biggest clients — including major pension funds, charitable foundations and sovereign wealth funds — had been awaiting the results of the report.

The $63 billion Pennsylvania Public School Employees’ Retirement System had said it would not invest any additional money with Apollo until the review was complete.

CalPERS — the California Public Employees’ Retirement System, one of Apollo’s biggest clients — had said it expected its outside investment managers to follow the fund’s own values.

Black acknowledged that “heightened media scrutiny of Apollo has generated unwelcome attention” for those investors.

Black said Apollo had hired a law firm, WilmerHale, to look into its reputational risk management practices and suggest improvements.

Black started Apollo with his younger partners — Mr.

Rowan as chief executive.

As the only three members of Apollo’s executive committee, the founders hold considerable sway over the company.

Summarized by 365NEWSX ROBOTS

RECENT NEWS

SUBSCRIBE

Get monthly updates and free resources.

CONNECT WITH US

© Copyright 2024 365NEWSX - All RIGHTS RESERVED