The Billion Life How Leon Black Built a $500 Billion Private Equity Empire and Lost His Reputation
Leon Black is one of the most influential and wealthy investors in the world. He is the co-founder and former CEO of Apollo Global Management, a private equity giant that manages over $500 billion in assets. He is also an avid art collector and philanthropist, who has donated millions of dollars to various causes, especially in the fields of education and health.
But who is Leon Black, and how did he achieve his success? What are the controversies and challenges that he has faced in his career and personal life? In this article, we will explore the biography, net worth, and scandals of Leon Black, the billionaire behind Apollo Global Management.
Early Life and Education
Leon Black was born on July 31, 1951, in Manhattan, New York. He is the son of Eli M. Black, a Jewish businessman who emigrated from Poland as a child and became the owner and chairman of United Brands Company, a multinational corporation that produced bananas, pineapples, and other tropical fruits. His mother, Shirley Lubell, was an artist and a sister of Tulsa oil executive Benedict I. Lubell.
Black had a privileged upbringing, attending elite private schools such as Riverdale Country School and Phillips Exeter Academy. He was also exposed to art and culture from a young age, as his parents were friends with prominent artists such as Mark Rothko and Willem de Kooning.
However, Black’s life was shattered in 1975, when his father committed suicide by jumping out of a window in his 44th floor office in the Pan Am Building in New York City. It was later revealed that his father was under investigation by federal regulators for allegedly bribing Honduran officials to lower the export taxes paid by United Brands. The company also claimed that it was a victim of extortion in Honduras.
Black was devastated by his father’s death, but he did not let it derail his ambitions. He graduated from Dartmouth College in 1973 with a degree in philosophy and history, and then earned his MBA from Harvard Business School in 1975. He also served on the board of trustees of Dartmouth College from 2002 to 2011, and donated $48 million to the college in 2012 to fund a new visual arts center.
Career and Wealth
Black began his career as an accountant at Peat Marwick (later KPMG) and as a publisher at Boardroom Reports. He also interviewed at Lehman Brothers but was told he did not have the brains or personality to succeed on Wall Street.
However, he proved his critics wrong when he joined Drexel Burnham Lambert in 1977, an investment bank that pioneered the use of high-yield bonds or junk bonds to finance leveraged buyouts and corporate takeovers. Black rose to become the managing director and head of the mergers and acquisitions group, and the co-head of the corporate finance department. He also became the right-hand man of Michael Milken, the so-called “junk bond king” who was later convicted of securities fraud.
At Drexel, Black made a fortune by advising some of the biggest deals of the 1980s, such as the buyouts of Revlon, Beatrice Companies, Safeway, and Viacom. He also established relationships with some of the most powerful businessmen in America, such as Carl Icahn, Ronald Perelman, Ted Forstmann, Henry Kravis, and George Soros.
However, Black’s career at Drexel came to an abrupt end in 1990, when the firm filed for bankruptcy after being sued by the federal government for its involvement in Milken’s illegal activities. Black was not charged with any wrongdoing, but he lost his job and most of his wealth.
Leon Black is currently worth around $11.5 Billion
How Leon Black Built Apollo Global
Undeterred by this setback, Black decided to start his own private equity firm with two former colleagues from Drexel: Joshua Harris and Marc Rowan. They named their firm Apollo Global Management after the Greek god of light and music. They also recruited other former Drexel employees and investors to join their venture.
Apollo quickly became one of the most successful private equity firms in the world, specializing in distressed debt investing, corporate restructuring, buyouts, real estate, credit markets, and hedge funds. Some of Apollo’s notable investments include Caesars Entertainment, Norwegian Cruise Line, ADT Security Services, LyondellBasell Industries, Hostess Brands, and Chuck E. Cheese.
Apollo went public in 2011, and Black remained its CEO until January 2021, when he stepped down amid controversy over his ties to Jeffrey Epstein. He still owns about 23% of the company, which is worth over $10 billion as of August 2023. According to Forbes, Black’s net worth is estimated at $10.1 billion, making him one of the richest people in America and the world.
Leon Black Family and Philanthropy
Leon Black wife is called Debra Black, a former Broadway producer and a melanoma survivor. They have four children: Benjamin, Joshua, Alexander, and Victoria. They live in a luxurious apartment on Park Avenue in Manhattan, and also own properties in Southampton, Aspen, and Palm Beach.
Black is also an avid art collector, who has amassed one of the most impressive collections of modern art in the world. He owns works by Pablo Picasso, Vincent van Gogh, Paul Cezanne, Henri Matisse, Andy Warhol, Jasper Johns, and Cy Twombly. He also spent $120 million in 2012 to buy one of the four versions of Edvard Munch’s painting “The Scream”, the most expensive artwork ever sold at auction.
Black is also a generous philanthropist, who has donated millions of dollars to various causes, especially in the fields of education and health. He and his wife have given over $50 million to the Melanoma Research Alliance, a foundation they co-founded in 2007 to fund research and treatment for skin cancer. They have also supported institutions such as the Metropolitan Museum of Art, the Museum of Modern Art, the New York Public Library, the Council on Foreign Relations, the Mount Sinai Health System, Harvard University, Dartmouth College, and the Jewish Museum.
Controversies and Scandals
Despite his success and generosity, Black has also faced several controversies and scandals in his career and personal life. The most serious one is his association with Jeffrey Epstein, the disgraced financier who was convicted of soliciting prostitution from a minor in 2008 and was arrested again in 2019 on federal charges of sex trafficking minors. Epstein died by suicide in 2019 while in federal custody.
Black admitted that he had paid Epstein $158 million between 2012 and 2017 for advice on taxes and estate planning. He said he regretted his involvement with Epstein but claimed he was unaware of his criminal activities. However, an independent investigation commissioned by Apollo found that Black’s payments to Epstein were excessive and poorly documented. The investigation also revealed that Black had socialized and dined with Epstein on several occasions.
Black’s ties to Epstein have sparked outrage among Apollo’s investors, employees, and board members. They have also attracted scrutiny from regulators and law enforcement agencies. In January 2021, Black agreed to pay $62.5 million to the government of the US Virgin Islands to avoid any legal claims related to Epstein’s sex trafficking investigation. He also stepped down as Apollo’s CEO and chairman, although he remained a board member and the largest shareholder.
Leon Black Rape Accusations
Black has also been accused of rape by two women who claim he assaulted them at Epstein’s mansion in 2002. One of them is Cheri Pierson, who filed a lawsuit against Black and Epstein’s estate in November 2022, alleging that Black raped her after she agreed to give him a massage for money. The other is a woman who has not been named publicly, who filed a lawsuit against Black in August 2023, alleging that he raped her while she had Down syndrome and was under Epstein’s control.
Black has denied both allegations, and his lawyer has called them “categorically false” and “part of a scheme to extort money from Mr. Black by threatening to destroy his reputation.”
Another woman who has accused Black of sexual abuse is Guzel Ganieva, a former Russian model who said Black coerced her into a relationship when she was 22 years old and then harassed and threatened her for years. She filed a lawsuit against Black in June 2021, alleging that he violated a non-disclosure agreement that he forced her to sign in 2015.
She also claimed that Black paid her $100,000 from an entity called “E Trust” to keep her quiet about their affair. Black has denied Ganieva’s allegations, and has countersued her for defamation and breach of contract. He has admitted to having an affair with Ganieva, but said it was consensual and that he exercised “extremely poor judgment.” The model had however asked the court to dismiss the suit as at the time of writing this article.
Conclusion
Leon Black is a billionaire investor who co-founded Apollo Global Management, one of the largest private equity firms in the world. He is also an art collector and a philanthropist, who has donated millions of dollars to various causes. However, he has also faced several controversies and scandals, especially regarding his association with Jeffrey Epstein, the convicted sex offender who died by suicide in prison.
He has also been accused of rape by two women who claim he assaulted them at Epstein’s home in 2002, and of sexual abuse by a former Russian model who claims he coerced her into a relationship. He has denied all these allegations, but has stepped down as Apollo’s CEO and chairman amid pressure from investors and regulators. He remains a board member and the largest
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