New York hedge, private equity funds drawn to Palm Beach

TRD 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
Carl Esrey & 119 E Inlet Drive (Credit: Google Maps)

Real estate financier drops $6M on Palm Beach home

Real estate financier drops $6M on Palm Beach home
The late Kate Ford with 300 North Lake Way (Credit: William Jacobellis/New York Post Archives /(c) NYP Holdings, Inc. via Getty Images, and Google Maps)

Ford family estate in Palm Beach lists for $58M

Ford family estate in Palm Beach lists for $58M
Donald Burns and 1021 North Ocean Boulevard (Twitter, Realtor)

Telecom tycoon sells Billionaires Row teardown in Palm Beach for $28M

Telecom tycoon sells Billionaires Row teardown in Palm Beach for $28M
From left: The Bristol in West Palm Beach; 6431 Pine Tree Drive Circle, Miami Beach; 2325 Desota Drive, Fort Lauderdale; and 12520 Seminole Beach Road, North Palm Beach (Realtor, iStock)

South Florida signed resi contracts up in September: Elliman

South Florida signed resi contracts up in September: Elliman
11750 Turtle Beach Road, North Palm Beach (Realtor)

Billionaire businessman sells North Palm Beach mansion for $19M

Billionaire businessman sells North Palm Beach mansion for $19M
Tad Smith and 250 Indian Road (Courtesy of Sotheby's, Realtor)

Former Sotheby’s CEO buys Palm Beach home for $8M

Former Sotheby’s CEO buys Palm Beach home for $8M
Joseph McMillan, CEO of DDG, and Kerry Warwick with 3550 South Ocean

Corcoran takes over sales of 3550 South Ocean

Corcoran takes over sales of 3550 South Ocean
1556 North Ocean Boulevard (Credit: Google Maps)

Wife of South Florida builder sells Palm Beach spec home for $7M

Wife of South Florida builder sells Palm Beach spec home for $7M
arrow_forward_ios

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

Loading...