Key Takeaways
- • Marc Rowan became Apollo Global Management CEO in March 2021 after Leon Black stepped down amid scrutiny of his ties to Jeffrey Epstein, a transition Business Insider describes as chaotic.
- • Apollo's assets under management rose by $58 billion over the past year, and the firm deployed a record $28 billion in the second quarter, yet its shares were up only 26% year-to-date versus gains of 100% at Blackstone, 62% at KKR, and 60% at Carlyle.
- • Rowan is tasked with integrating Athene, the annuities provider Apollo agreed to acquire in March 2021 in a deal valued at $11 billion, marking a shift from its traditional high-stakes dealmaking.
- • Insiders describe a long-running culture of internal conflict among Apollo's cofounders and executives, and employees are watching whether Rowan will change it.
- • Apollo disputes the account of executive conduct in a bestselling book on Caesars and says it has a "zero tolerance" policy for unprofessional behavior.
Summary
Business Insider profiles Marc Rowan, the 59-year-old co-founder who succeeded Leon Black as chief executive of Apollo Global Management in March 2021. Black announced his retirement from the CEO role in January, after an independent review conducted by the law firm Dechert detailed his business ties to Jeffrey Epstein. Joshua Harris, the other co-founder, was passed over for the top job and later stepped away from his day-to-day role. Rowan had been on a semi-sabbatical since the previous summer before the scandal drew him back into the firm.
Rowan now faces both commercial and cultural challenges. According to the report, Apollo grew assets under management by $58 billion over the past year, plans to add as many as 400 of its 1,700 employees, and deployed a record $28 billion in the second quarter. However, Apollo shares are up 26% since the start of the year, trailing Blackstone (100%), KKR (62%) and Carlyle (60%). Rowan has told associates that little at the firm needs to change. He has also said the firm "doesn't need to be fixed because there's nothing broken," according to Rodney Cohen of Black Diamond Capital Management.
The article describes a long-standing rivalry among the three co-founders, whom some executives called "the three amigos," with frequent clashes in investment committee meetings. Former executives said Black tolerated confrontation as a management philosophy. The report recounts Rowan's objections in 2009 to Jim Belardi, then the proposed leader of what became Athene, citing allegations of boorish behavior. Rowan's concerns were not shared by Harris and Black, and the deal proceeded; Belardi remains Athene's CEO. Apollo and Athene said outside counsel found no evidence of misconduct. The article also cites a Caesars bankruptcy book that depicted Rowan working closely with David Sambur, cohead of Apollo's $88 billion private-equity business. Apollo disputes the book's account and says it has zero tolerance for unprofessional conduct.
Business Insider reports that Rowan, known as "The Professor" for his low-key style, is viewed as the most balanced of the three co-founders. Friends believe his reluctance to campaign for the CEO post may have helped his case with Black, though the reasons for his promotion were not made public.
Rowan now faces both commercial and cultural challenges. According to the report, Apollo grew assets under management by $58 billion over the past year, plans to add as many as 400 of its 1,700 employees, and deployed a record $28 billion in the second quarter. However, Apollo shares are up 26% since the start of the year, trailing Blackstone (100%), KKR (62%) and Carlyle (60%). Rowan has told associates that little at the firm needs to change. He has also said the firm "doesn't need to be fixed because there's nothing broken," according to Rodney Cohen of Black Diamond Capital Management.
The article describes a long-standing rivalry among the three co-founders, whom some executives called "the three amigos," with frequent clashes in investment committee meetings. Former executives said Black tolerated confrontation as a management philosophy. The report recounts Rowan's objections in 2009 to Jim Belardi, then the proposed leader of what became Athene, citing allegations of boorish behavior. Rowan's concerns were not shared by Harris and Black, and the deal proceeded; Belardi remains Athene's CEO. Apollo and Athene said outside counsel found no evidence of misconduct. The article also cites a Caesars bankruptcy book that depicted Rowan working closely with David Sambur, cohead of Apollo's $88 billion private-equity business. Apollo disputes the book's account and says it has zero tolerance for unprofessional conduct.
Business Insider reports that Rowan, known as "The Professor" for his low-key style, is viewed as the most balanced of the three co-founders. Friends believe his reluctance to campaign for the CEO post may have helped his case with Black, though the reasons for his promotion were not made public.
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