Big Tech is flocking to Austin. Big Finance is expanding in Dallas. Houston, the epicenter of the U.S. energy industry, is diversifying away from Big Oil.
Florida may be the destination of choice for A-list money managers looking to flee Wall Street. But in the post-pandemic economy, Texas is rising, welcoming a rush of talented, wealthy people from California, New York and Illinois with the lure of lower taxes, luxury suburbs and opportunities to invest their cash — even as state lawmakers cast a wary eye at their potential blue-state politics.
In the last year, Tesla Inc. broke ground on a pickup-truck factory in Austin, and Oracle Corp. said it would shift its headquarters to the Texas capital. Hewlett Packard Enterprise Co. announced it was moving to the Houston area. Charles Schwab Corp. left San Francisco for the affluent Dallas suburb of Westlake, where Fidelity already has a campus. Vanguard plans to open an office in the area early next year.
And hedge funds are sprouting up or expanding all over Dallas. Izzy Englander’s Millennium Management, which has had offices in Texas since 2016, is backing a new fund, Meridiem Capital Partners, that’s expected to start trading in the second half of this year with $1.5 billion. Canyon Partners, which manages $24 billion, should have 55 employees in town by year end.
A change of scenery sometimes is a great way to energize an organization, and Texas is clearly a very, very business friendly state,” Canyon co-CEO Josh Friedman said in an interview with Bloomberg TV. “Dallas has a particularly good base, I think, of very sophisticated families and it’s a good community intellectually in which to run a business.”