Business is booming.

Apollo veteran Josh Harris launches $5bn investment group

Josh Harris, the billionaire private equity executive who left Apollo Global Management last year after a messy succession battle, is returning to the investment industry with a company that aims to be a contender in financial markets, including private equity, credit and insurance.

The company, called 26North, will start with $5 billion in assets under management and a team of 40 executives, according to a statement on Friday.

Among the newly announced recruits are Mark Weinberg, a veteran of Brookfield Asset Management and Lehman Brothers, who will lead the company’s private equity division.

Brendan McGovern, who left Goldman Sachs earlier this year after senior positions in the credit division of the bank’s wealth management arm, will assume responsibility for 26North’s direct lending platform.

Harris spent most of his career at Apollo, the private equity firm founded in 1990 by billionaire financier Leon Black with a group of partners from failed investment bank Drexel Burnham Lambert.

Since then, what started as a shoddy investment partnership focused on companies in need has grown into a $515 billion institutional manager, including a massive portfolio of corporate debt.

Many of those investments are tied to Athene Holding, the annuity company that Apollo founded in 2009 and with which it merged earlier this year.

Harris’ firm will also manage assets for customers in the annuity and insurance industry, according to a filing with the US Securities and Exchange Commission on Friday.

Black stepped down as CEO of Apollo last year after a law firm hired by the private equity group concluded that he had paid $158 million to the late sex offender Jeffrey Epstein in exchange for tax advice, help handling art transactions and other professional services. .

The controversy sparked a succession battle in which Harris eventually lost to fellow Apollo partner Marc Rowan. Black failed to convince a judge earlier this year that Harris was conspiring with a Russian fashion model to publish trumped-up sexual abuse allegations that prompted him to become Apollo’s CEO.