The founders of Apollo Global Management, one of the largest private equity firms in the world, had a brief power struggle over control of the firm this weekend, a rift that erupted after an investigation revealed that one founder – Apollo ‘s CEO and Chairman, Leon. Black – paid $ 150 million to convicted sex offender Jeffrey Epstein.
On Monday, Mr. Black announced his plan to retire as CEO of the company this year.
“I have advised the Apollo Board that I will retire as CEO on or before my 70th birthday in July, and will remain as Chairman,” he said in a statement.
According to two people familiar with the investigation, Mr. Black to mr. Epstein paid significantly more, according to the investigation that the firm’s board ordered in October after The New York Times paid $ 75 million. report was not public. The amount has effectively administered the disgraceful financier’s lifestyle over the years after pleading guilty in 2008 to a Florida prostitution charge involving a teenage girl.
According to a person familiar with the investigation, no evidence of abuse by Mr. Black not found.
The findings caused friction between Mr. Black and one of Apollo’s other founders, Joshua Harris, according to three people who were briefed on the discussions. One of the people said that Mr. Harris is of the opinion that Mr. Black shows a bad judgment with the conspiracy with Mr. Epstein, and that the new findings will further harm Apollo’s reputation. In recent months, Apollo investors have strained the financial ties between Mr. Black and Mr. Epstein, who passed away in 2019, openly questioned.
Apollo’s board held a video conference on Sunday to approve the findings of the review, according to two people briefed on the discussions. At the meeting, Mr. Black also announced his plans to retire this year and hand over the CEO to Marc Rowan, the third founder of Apollo. Mr. Black intends to remain chairman of the private equity. New York-based Apollo manages $ 433 billion for institutional investors, including pension plans and sovereign wealth funds.
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The board of Apollo is expected to announce this week, the person said.
During a series of meetings on Sunday night, including with individual board members, Harris objected to the timeline of Mr. Black to retire, because he was of the opinion that the reputation threat was so serious that Mr. Black had to relinquish the CEO without delay. said the people. Mr. That evening, Harris also addressed his case to his co-founders in talks with Apollo’s executive committee – which consists of the three.
Eventually, Harris’ objection fell on deaf ears, say the people who requested anonymity to talk about private deliberation.
Mr. Rowan, who built up Apollo’s insurance business but has largely deviated from the firm’s day – to – day operations over the past few years, will take over by the time Mr. Black end 70 becomes.
Mr. Black expects to notify Apollo customers in a letter Monday night about the succession plan and the findings of the review, one of the people said. Mr. Harris will continue in his current role as senior managing director, focusing on the firm’s financial performance and working closely with Mr. Rowan, according to the letter, the contents of which were described to The Times. The letter was also expected to inform clients about other proposed management changes and Mr. Black sets out to donate $ 200 million to charities that support gender equality and combat sex trafficking.