The Rise of a New Financial Hub
South Florida has transformed dramatically in recent years, earning the nickname “Wall Street South” as financial powerhouses migrate from New York to Miami, Palm Beach, and surrounding areas. What began as a trickle of firms seeking tax advantages has evolved into a significant reshaping of America’s financial geography.
The seeds of this financial migration were planted in the early 2010s when economic development agencies in Palm Beach County and Miami began actively recruiting hedge funds, private equity firms, and wealth management offices to the region. These early efforts gained momentum after the US Jobs and Tax Act implementation, which accelerated tax migration out of high-tax states like New York, New Jersey, and Connecticut.
The scale of this financial exodus is remarkable:
- Over 300 hedge funds, private equity, and financial service firms are now located in Palm Beach County alone, according to the Business Development Board of Palm Beach County.
- In just three years (2016-2019), 70 hedge funds, private-equity firms and wealth-management companies relocated to Palm Beach County from New York City as reported by the Business Development Board.
- Based on data from 2020-2021, Florida experienced the largest uptick in Registered Investment Advisor (RIA) registrations of any state, increasing by nearly 5% in a single year.
- More than 500 money-management firms headquartered in Florida now run hedge, private equity, venture capital, or other investment funds, according to data compiled by Convergence from public filings.
- Together, these firms manage approximately $300 billion in assets, creating a substantial financial ecosystem in South Florida.
Major Players Making Moves
The list of financial institutions expanding to South Florida reads like a Who’s Who of Wall Street:
- Goldman Sachs moved part of its asset management division to the region and expanded plans to include more than 100 traders and sales representatives in West Palm Beach
- The Blackstone Group established operations in Miami
- Carl Icahn relocated Icahn Enterprises headquarters from New York to Sunny Isles Beach
- Ken Griffin moved his hedge fund Citadel to Miami
- Peter Thiel’s Founders Fund opened offices in the region
- Citadel Advisors expanded their presence
- D1 Capital Partners and Tiger Global Management relocated permanently
- Virtu Financial opened a 10,000-square-foot regional office in Palm Beach Gardens
Today, Miami ranks as one of the world’s top financial centers, making its debut in the Global Financial Centers Index at No. 7 for the U.S. and No. 24 worldwide.
Prospect Rock Partners: Addressing the Talent Gap
Recognizing the critical need for specialized financial talent in the Wall Street South ecosystem, Prospect Rock Partners has announced plans to open an office in the region. Established in 2023, this financial search firm provides executive search services to investment banks, private equity firms, and companies looking to fill strategic finance roles.
Founded by former investment bankers, buy-side professionals, and financial recruiting executives, Prospect Rock Partners brings deep industry expertise to the talent acquisition challenges facing financial firms in South Florida. Their expansion represents a strategic move to capitalize on the growing demand for specialized recruitment services as Wall Street South continues to develop.
By establishing a presence in the region, Prospect Rock Partners is positioning itself at the intersection of two powerful trends: the continued migration of financial firms to South Florida and the resulting competition for qualified talent. Their services will be particularly valuable as companies seek experienced professionals who understand the nuances of the financial industry.
Wall Street South represents a paradigm shift in America’s financial landscape. While New York remains the nation’s preeminent financial center, South Florida’s growing influence challenges the notion that financial power must remain concentrated in traditional hubs.
The region’s success will ultimately depend on its ability to address the talent gap and other challenges while maintaining the business-friendly environment that attracted financial firms in the first place. With companies like Prospect Rock Partners entering the market to address critical recruitment needs, Wall Street South appears poised for continued growth and development.
As this financial ecosystem matures, it will not only reshape Florida’s economy but potentially redefine the geography of America’s financial industry for decades to come. The rise of Wall Street South may prove to be one of the most significant economic transformations to emerge from the pandemic era.
If you are looking to hire in South Florida, please reach out to meridith@prospectrockpartners.com.
