Leon Black to step down as Apollo CEO after Epstein review By Reuters

© Reuters. Leon Black, Chairman, CEO and Director, Apollo Global Management, LLC, speaks at the Milken Institute’s 21st Global Conference in Beverly Hills

By Mike Spector

NEW YORK (Reuters) – Leon Black said on Monday he would relinquish his chief executive post at Apollo Global Management (NYSE:) Inc following the buyout firm’s independent review of his ties to the late financier and convicted sex offender Jeffrey Epstein.

The review, conducted by law firm Dechert LLP, found Black was not involved in any way with Epstein’s criminal activities. Black, the review found, paid Epstein bona fide fees for advice on tax and estate planning, and other related services.

Nevertheless, Apollo said it would undertake efforts to strengthen its corporate governance to allow the board to oversee “all aspects” of the buyout firm and delegate less of that work.

Apollo co-founder Marc Rowan will take over as CEO, with Black remaining Apollo’s chairman, the firm said.

The sudden end to Black’s management of Apollo, a New York-based firm he co-founded 31 years ago and turned into one of the world’s largest private equity and credit investment groups, reflects the toll that revelations of his ties to Epstein took on the investment firm’s business.

Apollo executives had warned in October that some investors had paused their commitments to Apollo’s funds as they awaited the review’s findings.

Apollo shares missed out on a stock market rally and are down 1% since the New York Times reported on Oct. 12 that Black paid at least $50 million to Epstein for advice and services, when most of his clients had deserted him. Shares of peers Blackstone Group (NYSE:) Inc, KKR & Co (NYSE:) Inc and Carlyle Group (NASDAQ:) Inc are up 19%, 10% and 23% over that period, respectively.

The conflicts committee of Apollo’s board pursued the review with Black’s support in October. In a letter to Apollo’s fund investors earlier that month, Black said he regretted previous business and social relationships with Epstein, while denying any wrongdoing or inappropriate conduct.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*