Apollo Global Expands to South, Citing NYC Business Climate Concerns

Asset manager plans to shift future hiring to new regional headquarters, as NYC mayor proposes tax hikes on corporations.

Apr. 7, 2026 at 1:25am

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A minimalist studio still life featuring a stack of financial documents, a pen, and a calculator arranged on a clean, monochromatic background, symbolizing the abstract concepts of corporate strategy and finance.As financial firms seek more business-friendly environments, Apollo Global's expansion plans signal a shift in the corporate landscape.NYC Today

Apollo Global Management, an asset manager with $900 billion in assets, is planning to establish a second U.S. headquarters in the American South, potentially in Texas, Florida, or Tennessee. 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 surveyed partners and managing directors about their preferences for the new location, citing the lack of personal income tax in states like Texas and Florida.

Why it matters

Apollo's decision to expand outside of New York City reflects a broader trend of financial institutions relocating or expanding their footprints in the Sun Belt region, attracted by lower taxes and a more favorable regulatory environment. This shift in corporate strategy could have significant economic implications for New York City, which is already facing budget challenges.

The details

Apollo plans to maintain its flagship headquarters in New York City but intends for the bulk of its future hiring to take place at the new southern hub. The firm's decision to scout locations in the South follows a trend of other financial firms, such as Citadel, Elliott Management, JPMorgan, and Goldman Sachs, establishing significant presences in states like Florida and Texas. Data indicates a broader migration of capital from high-tax jurisdictions, with New York and California each losing an estimated $1 trillion in assets under management between 2020 and early 2023.

  • In February 2026, New York City Mayor Zohran 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.
  • Apollo leaders have recently surveyed partners and managing directors regarding their preferences for the new southern headquarters location.

The players

Apollo Global Management

An asset manager with $900 billion in assets that is planning to establish a second U.S. headquarters in the American South.

Zohran Mamdani

The mayor of New York City who has proposed tax increases on corporations to address a projected $5.4 billion budget shortfall.

Kathy Hochul

The governor of New York who was informed by Mayor Mamdani about the potential tax increases.

Steve Fulop

The president and CEO of the Partnership for New York City, who described Apollo's plan as a reaction to an unfriendly business environment in New York City.

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What they’re saying

“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”

— Steve Fulop, President and CEO of the Partnership for New York City

What’s next

Apollo leaders are expected to finalize the location for their new southern headquarters in the coming months, with Texas, Florida, and Tennessee among the top contenders.

The takeaway

Apollo's decision to expand outside of New York City highlights the growing appeal of the Sun Belt region for financial firms seeking lower taxes, a more favorable regulatory environment, and access to larger talent pools. This shift could have significant implications for New York City's economy, as it grapples with budget challenges and the potential loss of high-paying jobs and tax revenue.