Leon Black-Epstein: Apollo Review

APOLLO GLOBAL MANAGEMENT — INDEPENDENT REVIEW Subject: Leon Black's Financial Relationship with Jeffrey Epstein Reviewer: Dechert LLP (Independent Law Firm) Date: January 2021 REVIEW FINDINGS: PAYMENT SUMMARY: The independent review found that Leon Black, co-founder and CEO of Apollo Global Management, paid Jeffrey Epstein approximately $158 million between 2012 and 2017: - Payments were for tax planning, estate planning, and related advisory services - The payments were made after Epstein's 2008 conviction - Epstein was acting as an adviser to Black on personal financial matters - The payments were separate from Apollo Global Management operations NATURE OF SERVICES: According to the review, Epstein provided advice on: - Trust and estate planning structures - Tax optimization strategies - Charitable giving and foundation management - Art collection management and insurance - Real estate and property matters REVIEW CONCLUSIONS: The Dechert review concluded: - No evidence that Black was involved in Epstein's criminal activities - The advisory fees, while unusually high, were for legitimate services - Black did not engage in improper conduct - The relationship should have been disclosed to Apollo's board earlier BLACK'S RESPONSE: Leon Black: - Stepped down as Apollo CEO in March 2021, remaining as chairman - Subsequently stepped down as chairman in March 2022 - Stated that he deeply regretted the relationship with Epstein - Denied knowledge of Epstein's criminal conduct QUESTIONS RAISED: The review left unanswered questions: - Why $158 million for services that other advisers could provide for far less - Whether the payments were truly for advisory services or served other purposes - How Epstein marketed his services to ultra-wealthy individuals - Whether similar financial relationships existed with other clients Source: Apollo Global Management / Dechert Review Available at: https://www.apollo.com/