Apollo Global Management It plans to open a second headquarters in Florida or Texas, adding its name to a growing list of firms seeking a more business-friendly jurisdiction to operate. Apollo is expected to retain its New York headquarters, at least for now.
Apollo is an alternative asset manager that aims to provide clients with extreme returns across a variety of asset classes, from investment-grade credit to private equity. Assets under management are around $938 billion.
One of the major reasons why financial firms sought to move out of New York was the election of socialist mayor Zohran Mamdani, who publicly called for higher taxes on residents and wealthier individuals. New York’s governor recently implored residents who fled to Florida to return to help his tax base after previously telling them to leave.
There is no state income tax in Florida and Texas. New York is home to one of the highest state income taxes in the United States, along with a high cost of living and other systemic challenges.
Other financial firms moving their headquarters or opening significant offices outside of New York and other high-tax areas include: Castle (who fled Chicago to South Florida), JP Morgan, Goldman Sachs, Schwab, Wells Fargand more.
Under the leadership of Governor Ron DeSantis, Florida has boomed, unlike the “blue states” to which residents have migrated. Additionally, Florida has a significant budget surplus, and the state is exploring ways to eliminate property taxes for full-time residents, another incentive to move to the Sunshine State.
Immigration from high-tax, poorly governed states is expected to remain an ongoing trend, at least until policy changes eliminate or reduce incentives to leave troubled, business-unfriendly jurisdictions.
