The firm has announced that Scott Kleinman, Apollo's lead partner for private equity, and James Zelter, its head of credit, have been named co-presidents effective January 1, 2018. Their duties will include overseeing all of the firm's revenue-generating and investing businesses in their respective fields of expertise. Black, Apollo's chairman and CEO, and the firm's senior managing directors and other co-founders, Josh Harris and Marc Rowan, will all continue in their current roles.
There's been no shortage of managerial news this year in the PE world. In late October, The Carlyle Group announced that co-founders David Rubenstein and William Conway would step down from their day-to-day roles after three decades in charge. The news came after KKR announced in July that founders Henry Kravis and George Roberts would step back from their long-held leadership positions.
PE firms with aging founders have felt pressure to reveal succession plans. But Apollo has been somewhat immune to the scrutiny, per The Financial Times, because Black, at 66, isn’t as old as some of his counterparts.
In the meantime, more responsibility will be given to Kleinman, 44, who's been at Apollo since 1996 and the lead partner for its private equity division since 2009. Zelter, 55, joined Apollo in 2006 and before that, served as a chief investment officer at Citigroup. In addition to his role as MD of the firm's credit business, he's the CEO and director of Apollo Investment Corporation and a member of Apollo's management committee alongside Kleinman.
Apollo has completed 27 deals this year, just three short of the 30 closed in 2016, according to the PitchBook Platform. The firm raised $24.6 billion in July in what marked the biggest private equity fund ever, so more deals are almost certainly on the way.
Be sure to check out more of our Apollo coverage.