In March 2021, Leon Black announced he would step down as CEO of Apollo Global Management, one of the world’s largest private equity firms with approximately billion in assets under management. Black co-founded Apollo in 1990 and had built it into a financial powerhouse.
Trigger: The announcement came after Bloomberg News reported on the million in payments Black made to Jeffrey Epstein between 2012 and 2017. Apollo commissioned an outside review (by Dechert LLP) that concluded the payments were for legitimate tax and estate advisory services, but investor and institutional pressure mounted.
Transition: Black stepped down from the CEO role but retained a seat on Apollo’s board and his financial stake in the firm. Marc Rowan, co-founder, assumed the CEO role.
Defamation Lawsuit: Separately, Black faced a lawsuit from Guzel Ganieva, a woman who alleged a lengthy abusive sexual relationship with Black and extortion. Black denied the allegations and filed a defamation countersuit. The litigation continued for years.
Legacy: Despite the controversy, Black retained his significant wealth and influence within the private equity industry. The Apollo review’s conclusion that the Epstein payments were legitimate was not universally accepted as sufficient accountability for the relationship.