Leon Black plans to step down as chief executive of Apollo Global Management Inc. after an independent review revealed higher-than-expected payments to financier Jeffrey Epstein, who, however, considered justified.
The one-month review by Dechert LLP found no evidence that Black was involved in the criminal activities of the late Epstein, who was indicted in 2019 on federal sex trafficking charges involving underage girls, according to a copy of the law firm’s report that was seen by The Wall Street Journal.
In his report, Dechert found that the fees the billionaire paid Epstein were for legitimate advice on tax planning on property and property that proved to be of significant value to Black and his family. Mr. Black paid Epstein a total of $ 148 million, plus a $ 10 million donation to his charity – far more than was previously known.
Mr. Black wrote in a letter to investors in the Apollo fund that he would cede the role of CEO to co-founder Marc Rowan on or before his 70th birthday on July 31, while retaining the position of chairman of the board. In the letter, a copy of which was read by the Journal, Mr. Black detailed other governance changes he is recommending to the board, including the appointment of more independent directors and the elimination of Apollo’s two-class ownership structure.
Mr. Black also promised to donate $ 200 million of his family’s money to women’s initiatives.