In another massive blow to high-tax blue states, Apollo Global Management Inc. has announced plans to establish a second U.S. headquarters, scouting locations in Texas and South Florida.
The financial investment heavyweight allegedly shared with its teams on Sunday that it plans to open the second office while keeping its flagship New York City HQ, people familiar with the matter first told the Financial Times. The report also named Nashville as a possible option.
The move signals a growing trend of financial titans abandoning traditional hubs like NYC and San Francisco in favor of the Sun Belt, seeking lower taxes, better talent pools and a friendlier regulatory environment.
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Apollo did not immediately respond to Fox News Digital’s request for comment.
The flight of capital is no longer a post-pandemic trickle, as data shows that trillions of dollars in assets continue to flee high-tax jurisdictions. Between 2020 and early 2023, more than 370 investment companies moved their headquarters to a new state, according to a Bloomberg analysis.
These relocating firms brought a staggering $2.7 trillion in assets under management (AUM) with them, with New York and California alone losing an estimated $1 trillion each.
Florida, Texas, Tennessee and North Carolina have been the primary beneficiaries of the business migration, attracting new investments.
Fidelity and Vanguard, for instance, have expanded their presence in Texas, and Goldman Sachs is building a $500 million campus in Dallas. In 2021, Charles Schwab ditched San Francisco for the Dallas suburb of Westlake.
When Citadel made the move from Chicago to Miami in mid-2022, what followed was a slew of corporate re-locations. The new year has already welcomed a fresh wave of company headquarters to Miami, with names like Palantir, D-Wave Systems, GFL Environmental and Trinity Investments. Wider South Florida has built itself up as an established global business hub with several landmark commitments from brands including ServiceNow, Playboy, Wells Fargo, Varonis, TracFone and a handful of others.
Tennessee is emerging as a dark horse in the race for financial dominance since AllianceBernstein, the global investment management firm, paved the way by moving to Nashville from New York in 2021.
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