By Daily Mail (U.S.) | Created at 2026-06-15 19:02:23 | Updated at 2026-06-18 11:11:16
2 days ago
Apollo Global Management is hedging its bets on New York City, becoming the latest major Wall Street firm to shift operations away from Mayor Zohran Mamdani's 'tax the rich' policies.
The investment giant is opening a second US headquarters in Austin, Texas, as it looks to expand its footprint outside New York.
The move comes as companies increasingly reassess their exposure to rising costs and taxes in the city. Apollo narrowed its options to Texas and Florida, before ultimately choosing Austin.
The Marc Rowan-led firm reportedly ruled out Florida over concerns about the availability of top private schools in the Sunshine State, the Financial Times reported Friday.
Apollo told the Financial Times the expansion was about talent and the ability to recruit workers priced out by New York's high living costs.
Retail analyst Carol Spieckerman told the Daily Mail that Apollo's is hardly a full-scale retreat from New York.
'There is a push/pull energy at work,' she told us. 'Apollo has made specific references to New York not being the only option for talent acquisition in its space.'
Spieckerman believes the Austin expansion is 'more of a diversification strategy,' with the Texas capital offering a younger, tech-forward workforce and lower living costs.
Apollo Global Management is hedging its bets on New York City, becoming the latest major Wall Street firm to shift operations away from Mayor Zohran Mamdani's 'tax the rich' policies
Apollo is set to open its second headquarters in Austin, Texas, citing talent acquisition as the reason for the move, with the firm aiming to recruit workers who are unwilling to live with New York's high costs
The Marc Rowan-led powerhouse chose Austin after reportedly ruling out Florida over concerns about the availability of top private schools in the Sunshine State, the Financial Times reported Friday
'Austin is obviously offering compelling incentives to Apollo and the location is hardly a sacrifice,' Spieckerman said
For two decades, the firm has overseen more than $800 billion for pension funds, insurers and wealthy clients from its Midtown Manhattan headquarters overlooking Central Park.
They announced they were eyeing the move in March, right after Mamdani pushed to hike up taxes on major corporations.
Apollo was already dealing with higher taxes - paying $1.3 billion in 2025 income taxes, up from $1.1 billion a year earlier.
But for Spieckerman, Mamdani's efforts 'are still in the early stages.'
Apollo didn't immediately respond to the Daily Mail's request for comment.
The company is not the first financial heavyweight to look beyond the Big Apple.
The investment giant, which oversees more than $800 billion for pension funds, insurers and wealthy clients from its Midtown headquarters overlooking Central Park, paid $1.276 billion in income taxes in 2025, up from $1.062 billion the year prior
Of the several proposals supporting Mamdani's tax the rich mantra, only the pied-à-terre tax, which targets second homes, has passed. It will be in effect starting July 1
Citadel CEO Ken Griffin has also doubled down on plans to expand the hedge fund's footprint outside New York, after he was singled out by Mamdani in a tax-the-rich campaign video promoting his now-passed pied-à-terre tax, which targets second homes.
The tax was approved and signed by Governor Kathy Hochul and is scheduled to roll out in phases starting July 1.
Griffin broke the record for the most expensive home purchase in the US when he snapped up the $238 million penthouse at 220 Central Park South in 2019. Still, his primary residence is in Miami, Florida, after relocating his hedge fund in 2022.
In the video, Mamdani celebrated the policy while using the property as a prominent example of homes that would be affected.
Griffin responded by calling the video not only 'creepy' and 'frightening,' saying it evoked memories of the political dysfunction that prompted him to leave Chicago.
Some of Mamdani's proposals didn't make the cut, including his property tax hike of nearly 10 percent, his rejected proposal to raise state-controlled income and corporate taxes and his estate tax cuts, which would've lowered the exemption from $7 million to 750,000.
However, for some companies, the damage has already been done.
Southern cities are attracting corporate expansions and relocations with lower taxes and lighter regulations.
Texas has been bolstering its appeal to major corporations by passing a series of laws designed to encourage companies to reincorporate in the state. Both Goldman Sachs and Wells Fargo have already taken advantage of the incentives and set up base in Dallas
Perks like these have already drawn Vanguard and Fidelity to Texas.
Goldman Sachs also announced they're building a $500 million office tower in Dallas, while Wells Fargo opened a massive 850,000 sq ft campus outside the city.
Texas has bolstered its appeal by passing laws to lure companies to reincorporate there and has opened special courts just for business disputes.
The New York Stock Exchange and Nasdaq are facing a new challenger as the Texas Stock Exchange gears up to launch trading this summer, adding to the rush by Wall Street titans to establish a foothold in the Lone Star State.
Then there is Elon Musk, who has been vocal in encouraging other executives to follow his lead and relocate to Texas.
Apollo could also be drawn to Austin by Texas's lack of a state income tax.
The capital city is already a hub for major institutional capital, including the University of Texas System's endowment, which oversees more than $80 billion, alongside the Teacher Retirement System of Texas.
