US. Apollo Clients Await Inquiry’s Findings on Chief and Jeffrey Epstein
Leon Black helped start Apollo Global Management three decades ago out of the ashes of a junk-bond scandal and built a $400 billion private-equity powerhouse, handling the investments of institutions around the globe, from public pension systems in California to sovereign wealth funds controlled by foreign governments.
But now some of his clients are asking pointed questions about his judgment, as his association with a notorious sex offender threatens to cloud his future.
In the past two weeks — since The New York Times detailed more than $50 million in payments and contributions from Mr. Black to Jeffrey Epstein — Apollo’s clients have begun demanding answers about that relationship.
In at least one case, an investor has decided not to hand Apollo any more of its money for the time being. Apollo will report its quarterly earnings on Thursday, and an analyst note from investment firm Keefe, Bruyette & Woods said the effect of Mr. Black’s dealings with Mr. Epstein on client relations will be a “focal point” of the private equity firm’s earnings call.
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