Apollo Global Management, Inc.
Approved Evidence
Apollo paid $52.7 million after SEC found investors were misled about fees and conflicts
The SEC charged four private-equity fund advisers affiliated with Apollo Global Management in August 2016 over disclosure and supervisory failures. The SEC found that Apollo advisers failed to adequately disclose the benefits they received from accelerating future monitoring fees owed by portfolio companies when those companies were sold or taken public. Those lump-sum payments reduced portfolio-company value and amounts available for distribution to fund investors. The SEC also found misleading disclosures concerning interest on a loan involving an affiliated general partner and five funds, and supervisory failures involving a senior partner who improperly charged personal expenses to Apollo-advised funds and portfolio companies. Apollo-affiliated advisers agreed to pay $52.7 million in disgorgement, interest and penalties. Primary source: SEC — Apollo Charged With Disclosure and Supervisory Failures: https://www.sec.gov/newsroom/press-releases/2016-165