[Axios via Zero] In what Axios has described as "the most significant private equity retirement ever", Leon Black, CEO and chairman of the Apollo Global Management, | ...an investment firm with $456 billions assets under management... |
While Black attributed his departure to health issues, this excuse was so thin as to be transparent: Black is making a complete break with the company amid intensifying pressure for the firm's clients to cut ties over Black's closeness to Jeffrey Epstein, the unrepentant convicted pedophile who is still the focus of one of the most closely watched legal proceedings in the US more than 2 years after his death.
Axios broke the news, and in its report, it pointed out that while Black had been planning to abdicate the CEO role in the coming months, he still hoped to stay on as chairman. Instead of waiting until July to turn over the CEO reins to Apollo co-founder Marc Rowan, Black is leaving immediately, and in addition to turning over the CEO role to Rowan, he is turning over the chairman's seat to former Trump-era SEC head Jay Clayton.
Apollo also added two new directors: Richard Emerson (ex-Evercore Partners, Microsoft) and Kerry Murphy Healey (former Lt. Gov of Massachusetts).
In a relatively terse goodbye statement, Black touted his expectation that Wall Street will be blown away by Apollo's Q1 numbers, while also recounting the damage that COVID-19 has visited on his extended family (and the toll that all the speculation about his ties to Epstein, which elicited an internal investigation, has taken on his health) : Apollo Founder Leon Black said, "I am extremely pleased that we have filled out the two-thirds independent board with such highly-qualified, diverse individuals. In the last few months, not only did we announce a transformative merger with Athene, but also expect to report that our first quarter earnings will exceed analyst consensus in all relevant measures and that the first quarter fundraising is trending towards the high end of our $15-20b annual range. I thus view this as the ideal moment to step back and focus on my family, my wife Debra’s and my health issues, and my many other interests."
"Marc has seamlessly transitioned into the CEO role and I am confident Apollo will soar to new heights under his leadership. He will be in great company alongside seasoned leaders Jim Zelter and Scott Kleinman," Black continued. "Over the past 30-plus years, my co-founders, Marc, Josh Harris and I, have worked extremely hard to make Apollo a franchise built for enduring success. I believe strongly that Apollo’s best days lie ahead. I intend to remain Apollo’s largest shareholder, and strongest supporter."