Leon Black, the billionaire co-founder of Apollo Global Management Inc.,
APO 2.18%
resigns as president of the investment giant in an unexpected move that is the latest in a governance review initiated by revelations of his links to the unfortunate financier Jeffrey Epstein.
Apollo said Monday that co-founder Marc Rowan had formally assumed the title of Mr. Black’s CEO, a transition the New York firm announced in January and said would take place before July 31, Mr. Black’s 70th birthday. . Mr Black, who the firm had previously said would continue as chairman, handed over the role to former Securities and Exchange Commission chairman Jay Clayton, who was appointed senior independent director last month.
Black cited the health issues he and his wife were having when announcing the move.
The move is the latest in a series of changes to the firm since the conclusion of an independent review of the ties between Mr. Black and Epstein. A review by law firm Dechert LLP revealed that Mr. Black paid Epstein a total of $ 158 million for tax and estate planning services, far more than was previously known.
The review found no evidence that Mr. Black was involved in Epstein’s criminal activities, which he was charged in 2019 with federal charges of sex trafficking involving underage girls and then killed himself in prison.
In a statement Monday, Mr Black said the company’s earnings in the first quarter would exceed analysts’ expectations and that fundraising would be forecast for Apollo’s $ 15 billion to $ 20 billion annual forecast.
“So I see this as the perfect time to take a step back and focus on my family, my wife Debra and my health issues, and my many other interests,” he said.
More than a decade ago, Debra Black was diagnosed with melanoma in the second phase and the couple has donated hundreds of millions of dollars to fund research into the disease through a foundation they established in 2007. continued to struggle with the disease in recent months. according to a person familiar with the matter.
Meanwhile, Mr Black has been battling his own health problems for the past few weeks, the person said.
Apollo has added several independent directors since the conclusion of the Dechert review, in addition to Mr. Clayton. On Monday, he added two more, and immediately appointed Richard Emerson, president of Pendral Capital, and Kerry Murphy Healey, president of the Milken Center for Advancing the American Dream.
The firm also announced earlier this month that it would abandon its dual-class shareholding structure and move to a “one-share, one-vote” regime.
Mr. Rowan, 58, an architect of Apollo’s highly successful insurance strategy, has already moved to put his stamp on the firm, announcing a merger with Athene Holding Ltd.
earlier this month, which valued Apollo insurance affiliate $ 11 billion.
Apollo already owns a large part of Athens and the insurer represents a large part of its assets managed for $ 455 billion. The companies said the deal was aimed at simplifying the relationship and better aligning the interests of both shareholder groups.
Write to Miriam Gottfried to [email protected]
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