Mohamed Ali Rashid used to be a partner at Apollo Global Management Inc., the big private equity firm. As part of his job, he would fly around to visit companies in which he had made, or was considering making, investments on behalf of the private equity funds that Apollo manages. He spent a lot of money on flights, hotels and meals as he evaluated investments and monitored portfolio companies. Naturally he put all of these expenses on his Apollo corporate credit card. That’s why he had the card. He didn’t pay for his flights to monitor portfolio companies.

Neither, to be clear, did Apollo. Apollo, his firm, turned around and billed those expenses to the funds that it managed for investors or to the portfolio companies that it ran for those funds. Its limited partnership agreements with those funds said that the funds would pay for Apollo’s expenses “arising in connection with [the fund’s] operations and the acquisition, ownership, and maintenance of investments in Portfolio Companies.”1 And Rashid — or his assistant — had to fill out expense reports explaining each expense that he charged on his corporate card, and allocating each expense to a particular investment, so that Apollo could bill the expense to the right funds or companies.2

QOSHE - Apollo Partner Did the OK Kind of Fraud - Matt Levine
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Apollo Partner Did the OK Kind of Fraud

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14.03.2024

Mohamed Ali Rashid used to be a partner at Apollo Global Management Inc., the big private equity firm. As part of his job, he would fly around to visit companies in which he had made, or was considering making, investments on behalf of the private equity funds that Apollo manages. He spent a lot of money on flights, hotels and........

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