Goldman Sachs Group is considering moving its asset management division to South Florida, potentially joining other financial giants who have left New York for the Miami area.
The investment bank has looked at spaces in Palm Beach County and Fort Lauderdale, Bloomberg reported. Goldman Sachs is looking to take advantage of tax benefits if it opens a home base in Florida. Florida, which lacks a state income tax, has increasingly attracted wealthy executives throughout the pandemic.
Goldman Sachs’ asset management arm brings in about $8 billion a year, accounting for about a quarter of its revenue, according to Bloomberg. Investment professionals and back-office staff would eventually work out of the Florida office.
Earlier this year, Goldman Sachs managing director Douglas Sacks paid nearly $12 million for a condo at Eighty Seven Park in Miami Beach.
A number of major investment firms have opened offices or moved their headquarters to South Florida. Ken Griffin’s Citadel, Paul Singer’s Elliott Management Corp. and Blackstone Group are all making the trip south. Blackstone will operate out of the Southeast Financial Center in downtown Miami until it moves to a permanent location for its tech employees nearby, executives said during a recent webinar.
Singer is moving the headquarters of his hedge fund to West Palm Beach from Midtown Manhattan, as his expected successor, Jon Pollock, relocated to his West Palm home during the pandemic.
If Florida doesn’t pan out, Goldman Sachs is instead considering expanding in Dallas. [Bloomberg]— Katherine Kallergis