Is Miami becoming the next ‘Wall Street South?’
Goldman Sachs Group Inc. and Elliott Management Corp. are breathing new life into the decades-old idea of converting the Miami-to-West Palm Beach corridor into a southern hub for finance and investing, a notion that would have a monumental impact on the area’s development.
Long a second-home destination for America’s multi-millionaire and billionaire class, the region has struggled to convince those same people to bring their companies to the Sunshine State… until now.
Guess who else is moving to South Florida? Jared Kushner, Ivanka Trump, Tom Brady, Gisele Bundchen, Joshua Kushner, Karlie Kloss, the asset management division of Goldman Sachs and MORE. This is just last week alone. The New York Post also reported that JP Morgan CEO Jamie Dimon is open to moving his bank to Florida, too, a move he formerly resisted.
Starwood Property Trust is building a new headquarters on Miami Beach and CEO Barry Sternlicht settled in as a city resident a few years back. Billionaire investor Carl Icahn this summer moved Icahn Enterprises from New York City to the Milton Tower, located in Sunny Isles Beach. Chicago’s Ken Griffin just spent $37M for property on exclusive Star Island and there are rumors that his firm, Citadel, will relocate nearby.
Entrepreneur James Altucher sparked a fight over the Big Apple that put Jerry Seinfeld on the defensive. Miami is also becoming a hub for tech professionals who are moving to the city in droves (techxodus) and billionaire entrepreneur Moishe Mana has been at the forefront of developing areas of Miami such as Flagler District in Downtown and the coveted neighborhood ‘Wynwood.’ Mayor of Miami, Francis Suarez has been a critical point in these endeavors. Why Miami and not Austin? — click here.
According to Bloomberg, 20 bankers with Moelis & Co. told boss Ken Moelis they wanted to move to Florida, and he is allowing it. His company is saving about $30M a year since the company pivoted to Zoom meetings over in-person ones during the coronavirus pandemic.
While New York remains the undisputed center of the hedge-fund universe, there are approximately 70 hedge and private equity funds now headquartered in Florida.
Everest Capital, which manages an estimated $2.3 billion, is headquartered in Miami along with private-equity companies like Trivest and HIG Capital.
Setting up shop in Miami means capitalizing on a growing Latin American client base and Miami can be considered a financial ‘gateway’ to the America’s (BI).
What do you think about the mass migration of finance and tech professionals to South Florida? We’d love to hear your thoughts!
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