In a significant development for the financial world, one of Wall Street’s most prominent firms is contemplating a move southward, spurred by New York City’s newly proposed tax policies. According to a report released on Sunday, Apollo Global Management, a colossal asset manager overseeing $900 billion, is considering establishing a second U.S. headquarters in the southern Sunbelt region. This move coincides with Mayor Zohran Mamdani’s push to increase taxes on major corporations, as highlighted by the Financial Times.
Steve Fulop, the president and CEO of the Partnership for New York City, a business advocacy organization, expressed that Apollo’s potential relocation is a foreseeable response to what he perceives as an increasingly inhospitable business environment in 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,” Fulop shared with The Post.
In anticipation of this potential shift, Apollo’s leadership has reportedly been surveying their partners and managing directors regarding their preferences for relocating their families and bonuses to either Texas or Florida. Both states are appealing due to their lack of personal income tax and their inviting warm climates, according to sources mentioned in the Financial Times.
“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,” Fulop told The Post.
Apollo leaders have already quizzed partners and managing directors on where they’d rather move their families and bonuses — Texas or Florida — sources told FT.
Both red states have no personal income tax in addition to the warm weather.
Florida has already lured heavyweights like Citadel and Elliott Management, while Goldman Sachs and JPMorgan are hunkering down in Texas.
Apollo expects most of its future hiring to be in the second hub rather than Manhattan, according to a statement from the firm.
The move would be a slap to New York City, where Apollo has long enjoyed a cushy perch overlooking Central Park on West 57th Street.
Mamdani has cast a projected $5.4 billion budget shortfall in the city budget as a crisis that can only be fixed with more taxes to build revenue.
The democratic socialist has pushed Gov. Kathy Hochul and state lawmakers to increase the corporate tax and hike taxes on rich — and he’s even threatened to up the city property taxes 9.5% if the state doesn’t act.
Property taxes wouldn’t need state approval, but the plan appears largely dead on arrival due to lack of buy-in from the City Council.
Meanwhile, Hizzoner has angered fiscal hawks last week by being coy about how his administration will deliver on $1.7 billion in savings he promised. He also said New Yorkers may have to wait till the end of April — when the mayor’s executive budget is due — to see the savings proposed.
Wall Street execs have long warned that firms would bolt if Mamdani pushes through higher personal and corporate taxes to plug budget gaps and boost social spending.
“The crowd that keeps daring businesses to leave should treat this as a flashing warning sign. When jobs go, revenue goes as well and the affordability problem gets worse,” Fulop said.
