Apollo Global’s South HQ: Data Debunks NYC Business Exodus Claims
- Apollo Global Management, an asset manager with $900 billion in assets, is planning to establish a second U.S.
- The move comes as New York City Mayor Zohran Mamdani proposes tax increases on corporations to address a projected $5.4 billion budget shortfall.
- Apollo leaders have reportedly surveyed partners and managing directors regarding their preferences for the new location, specifically weighing Texas and Florida.
Apollo Global Management, an asset manager with $900 billion in assets, is planning to establish a second U.S. Headquarters in the American South. The firm intends for the bulk of its future hiring to take place at this new hub rather than at its Manhattan office located at 9 West 57th Street.
The move comes as New York City Mayor Zohran Mamdani proposes tax increases on corporations to address a projected $5.4 billion budget shortfall. In February 2026, Mamdani informed Governor Kathy Hochul that taxes on the wealthy must be raised or homeowners in New York City would face a 9.5% property tax increase.
Potential Locations and Strategic Shift
Apollo leaders have reportedly surveyed partners and managing directors regarding their preferences for the new location, specifically weighing Texas and Florida. Both states are noted for having no personal income tax. Other locations being considered include Nashville.
The decision to expand into the Sun Belt follows a trend of other financial institutions relocating or expanding their footprints in the region. Florida has already attracted firms such as Citadel and Elliott Management, while JPMorgan and Goldman Sachs have established significant presence in Texas.
Business Climate and Economic Impact
Steve Fulop, president and CEO of the Partnership for New York City, described Apollo’s plan as a reaction to an unfriendly business environment in New York City.
Steve Fulop, President and CEO of the Partnership for New York City
The reality is that you can’t propose budget after budget that vilifies employees and then be surprised when they decide to go somewhere else
Data indicates a broader migration of capital from high-tax jurisdictions. A Bloomberg analysis found that between 2020 and early 2023, more than 370 investment companies moved their headquarters to different states.
These relocations involved approximately $2.7 trillion in assets under management. According to the analysis, New York and California each lost an estimated $1 trillion in assets during this period, with the primary beneficiaries being Texas, Florida, Tennessee, and North Carolina.
Corporate Strategy and Future Growth
While Apollo plans to maintain its flagship headquarters in New York City, the strategic shift in hiring suggests a pivot toward regions with lower taxes and a more favorable regulatory environment. The firm’s decision to scout locations in the South reflects a growing trend of financial titans seeking better talent pools and reduced overhead in the Sun Belt.
The development occurs amid a political divide within the city’s leadership. Mayor Mamdani, a democratic socialist, has framed the city’s budget crisis as a situation that can only be resolved through increased revenue generated from taxes on deep-pocketed corporations.