Apollo Global Management is planning to open a second headquarters in either Florida or Texas, adding its name to the growing list of firms seeking a more business-friendly jurisdiction to operate. Apollo is expected to keep its NYC HQ, at least for the time being.
Apollo is an alternative asset manager that aims to provide clients with excess return across diverse asset classes from investment-grade credit to private equity. Assets under management are around $938 billion.
One of the top reasons financial firms sought to move outside New York was the election of socialist mayor Zohran Mamdani, who has publicly pursued higher taxes on residents and more affluent individuals. The governor of New York recently begged residents who had fled to Florida to return to help out the tax base after previously telling them to leave.
Florida and Texas do not have a state income tax. New York is home to one of the highest state income taxes in the US, alongside a high cost of living and other systemic challenges.
Other financial firms that have relocated their headquarters or opened significant offices outside of New York and other high tax jurisdictions include Citadel (which fled Chicago to South Florida), JP Morgan, Goldman Sachs, Schwab, Wells Fargo, and more.
Florida, under the leadership of Governor Ron DeSantis, has boomed in contrast to “blue states” that have seen an exodus of residents. Additionally, Florida has a significant budget surplus, and the state is looking to eliminate property taxes for full-time residents, another incentive to relocate to the Sunshine State.
The migration away from high-tax, poor-governance states is expected to remain an ongoing trend, at least until policy changes eliminate or reduce incentives to leave problematic, business-unfriendly jurisdictions.
