The Dirty World of Billionaire Leon Black and Jeffrey Epstein: Profits Over People

Leon Black, the billionaire co-founder and former chief executive officer of Apollo Global Management, maintained a financial relationship with convicted sex offender Jeffrey Epstein that lasted for years and ultimately contributed to Black’s resignation from the firm. Why should HEI be covering this old story?  Because the theme, of profits over people, is a major theme in the dirty world of business that permeates US higher education. 

Profits Over People

Apollo Global Management, the firm Black co-founded, is one of the world’s largest alternative asset managers, with hundreds of billions of dollars in assets under management across private equity, credit, and real estate. In 2016, Apollo, along with the Vistria Group and Najafi Companies, acquired Apollo Education Group, the parent company of the University of Phoenix, for over $1.1 billion. The University of Phoenix remains under the control of these owners and continues to operate as a for-profit institution.

Critics of private equity and venture capital in education argue that such firms are driven by short-term profitability rather than long-term institutional quality. This can lead to aggressive marketing, high tuition, cuts to faculty and staff, and diminished student outcomes. In the case of Apollo Global Management’s ownership of the University of Phoenix, concerns have persisted about the potential for cost-cutting and profit-maximizing strategies to undermine the educational mission. For-profit colleges owned by large investment firms have been accused in the past of prioritizing shareholder returns over student success, adding another layer to the public scrutiny of both Apollo and the institutions it controls.

Ties Between Leon Black and Jeffrey Epstein

Between 2012 and 2017, Black paid Jeffrey Epstein approximately $158 million for what he described as financial advice, including tax and estate planning services. A March 2025 report from the Senate Finance Committee revealed that the total amount transferred to Epstein was closer to $170 million, about $12 million more than previously disclosed. In 2023, Black agreed to pay $62.5 million to the U.S. Virgin Islands to settle claims that some of his payments to Epstein were used to support Epstein’s illicit operations. Black has said publicly that his association with Epstein was a “horrible mistake” and has emphasized that had he known more about Epstein’s criminal activities, he would have cut ties sooner.

Although Black has described his relationship with Epstein as limited, records show that Epstein became one of the original trustees of the Leon Black Family Foundation in 1997. Black also contributed a handwritten poem to a 2003 “50th birthday book” for Epstein, an item that included greetings from other prominent figures. In January 2021, following an independent review by the law firm Dechert LLP that detailed the payments to Epstein, Black announced that he would step down as CEO of Apollo Global Management.

Black has faced several legal challenges connected to allegations of sexual misconduct, many of which reference Epstein. In 2023, “Jane Doe” filed a lawsuit claiming she was assaulted by Black at Epstein’s Manhattan townhouse; in April 2025, her lawyers sought to withdraw from the case. In another case, accuser Cheri Pierson alleged rape but withdrew her lawsuit in early 2024. A separate suit filed by Guzel Ganieva, which accused Black of abuse and coercion involving Epstein, was dismissed in 2023. Black has consistently denied any wrongdoing.

Sources
Business Insider
The Daily Beast
ABC News
Wikipedia – Leon Black
Wikipedia – Apollo Global Management
EdSurge
Republic Report