Apollo Global Management’s New HQ in Austin
Apollo Global Management has reportedly selected Austin, Texas, as the site for its second U.S. headquarters. This decision seems to reflect a trend where Wall Street firms wish to distance themselves from Mayor Zoran Mamdani’s left-leaning tax policies.
After considering options in Texas and Florida, the investment firm led by Mark Rowan ultimately chose Austin. It appears concerns regarding the limited availability of private schools in Florida played a significant role in this choice, as noted by the Financial Times.
Apollo oversees a staggering $800 billion in assets for various clients, including pension funds and wealthy investors. Currently, the firm operates from a tower in Midtown Manhattan with views of Central Park.
Now, Apollo is looking for a major base away from the hustle of New York City.
According to the Financial Times, the firm says this move centers around acquiring talent. They want to attract employees who prefer not to live in New York or deal with its high living costs.
Shifting headquarters away from Manhattan could have significant financial implications for the city.
In 2025, Apollo is expected to pay approximately $1.276 billion in income taxes, an increase from $1.062 billion the previous year. While it’s unclear how much of this tax revenue supports New York City, losing this revenue stream would be a considerable hit for the metropolis as Apollo seeks to expand elsewhere.
Ken Griffin, CEO of Citadel, has also turned his focus towards expanding outside New York after coming under fire from Mayor Mamdani for a controversial video about taxing the wealthy.
Moves by Apollo and Citadel are indicative of a “troubling pattern” emerging in New York City, according to Steve Fulop, president and CEO of the New York City Partnership. He pointed out that a “truly pro-business agenda” is necessary for the city to maintain its competitive edge.
The newspaper reached out to an Apollo spokesperson for comment.
It’s clear that southern states are becoming increasingly appealing to large corporations, thanks to lower taxes and reduced regulations. Vanguard and Fidelity have also made the move to Texas, while Goldman Sachs is developing a $500 million office tower in Dallas, and Wells Fargo recently established an extensive campus nearby.
Texas continues to actively attract businesses, having even passed legislation promoting corporate reincorporation. Moreover, it’s set to launch a new Stock Exchange this summer, competing with the established New York Stock Exchange and Nasdaq.
Meanwhile, Austin’s lack of a state income tax is definitely a draw for Apollo.
The city has been gaining traction as a tech hub, particularly during the pandemic, with expansions from major players like Meta, Google, and Oracle.
