New York hedge, private equity funds drawn to Palm Beach

Miami /
Jan.January 27, 2014 04:30 PM

The changing tax laws are expected to help drive up the number of private equity funds, hedge funds and other Wall Streeters fleeing New York for South Florida, especially Palm Beach.

Section 457A of the Internal Revenue Code, which was recently enacted, will require hedge fund managers to move all fees deferred before 2009 and all related earnings out of offshore accounts into U.S. accounts by 2017. A manager who lives in Florida will pay much less in state taxes on the money compared to New York.

Roughly 70 private equity funds and hedge funds are based in South Florida, Dujour reported. Most of them arrived there between 2012 and now.

Kelly Smallridge, CEO and president of the Palm Beach Business Development Board, is leading an initiative to inform managers of the tax benefits so that they move to Palm Beach or stay there. Kayne Anderson Real Estate Advisors, for example, relocated from Armonk, N.Y., to Florida last summer.

“There was a fair amount of trepidation,” Al Rabil III, CEO of Kayne Anderson Real Estate Advisors, told Dujour. “But once everybody got past the stereotypes and actually came and looked, that changed.” [Dujour]Mark Maurer


Related Articles

arrow_forward_ios
1440 South Ocean Boulevard and Sydell Miller (Google Maps, Getty)
Facelift required: Beauty mogul sells Palm Beach lot for $42M
Facelift required: Beauty mogul sells Palm Beach lot for $42M
450 Royal Palm Way and the buyer H. William Perry. (Google Maps, Gunster)
Banker’s Row office building in Palm Beach sells for $17M
Banker’s Row office building in Palm Beach sells for $17M
Carl Panattoni and 965 North Ocean Boulevard (Photos via Panattoni Europe, Google Maps)
Carl Panattoni sells oceanfront Palm Beach property for $34M to Stock Development
Carl Panattoni sells oceanfront Palm Beach property for $34M to Stock Development
David Tepper and 905 North Ocean Boulevard (Getty, Google Maps)
Hedge fund billionaire David Tepper paid $68M for Palm Beach mansion
Hedge fund billionaire David Tepper paid $68M for Palm Beach mansion
The property has 5 bedrooms in the main house and 2 in the guesthouse. (901 North Ocean blvd)
Palm Beach developer lists spec mansion next door to David Tepper’s for $84M
Palm Beach developer lists spec mansion next door to David Tepper’s for $84M
David Tepper and 905 North Ocean Boulevard (Getty, Google Maps)
Carolina Panthers owner to buy $73M Palm Beach mansion
Carolina Panthers owner to buy $73M Palm Beach mansion
Scott Shleifer and 535 North County Road in Palm Beach (Photos via LinkedIn, Google Maps)
Private equity titan buys Palm Beach estate asking $140M: sources
Private equity titan buys Palm Beach estate asking $140M: sources
Cobey Rapaport and 790 South County Road, Palm Beach (Getty, Google Maps)
South Florida developer’s widow sells waterfront Palm Beach mansion for $31M
South Florida developer’s widow sells waterfront Palm Beach mansion for $31M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...