June 30, 2022 — Firm News
Florida's financial services sector has experienced significant growth as firms relocate from traditional northern financial hubs. The "Wall Street South" movement began in the 2010s when regional officials actively recruited private equity firms, hedge funds, and wealth management companies, resulting in more than 70 financial services relocations to Palm Beach County between 2016 and 2019.
The COVID-19 pandemic accelerated this migration substantially. According to U.S. Bureau of Labor Statistics data from March 2022, the Miami, Fort Lauderdale, and West Palm Beach areas added 23,000 jobs in professional and business services and 8,900 positions in financial activities from 2021 to 2022.
Transplants cite multiple attractions including favorable weather, lack of state income tax, and reduced regulatory requirements. "My wife and I moved to Miami 20 years ago and all the things that were true about the city then are true now," says David Gershman of Trivest. "It's just that more people are seeing it."
Some firms emphasize flexibility and workforce benefits. PennantPark Investment Advisers relocated its headquarters to Miami to create a balanced work environment while attracting talent. The firm currently employs eight full-time Miami workers with plans to expand to 20-25 employees.
Rising housing costs present challenges. Real estate prices have displaced some longtime residents, prompting certain investment firms to explore alternatives. Star Mountain Capital selected Tampa instead, prioritizing affordability and quality-of-life factors for younger employees.
Elie Azar, White Wolf Capital's founder, emphasizes community responsibility: "I think it's incumbent for anyone who has taken advantage of what the area has to offer and moved their firm here to stay engaged in the local community and support the business-friendly policies" that attracted them.
Industry observers predict sustainable growth beyond pandemic-driven trends, with legal and accounting services expected to follow investment firms southward.