• Ken Griffin plans to enlarge Citadel's Miami office, citing New York Mayor Zohran Mamdani's tax rhetoric as a catalyst.
  • The move underscores a broader trend of financial firms shifting to lower-tax, pro-business states.
  • Griffin's comments at the Milken Institute Global Conference frame Miami as a strategic growth hub.

Citadel founder Ken Griffin said he intends to expand the firm's Miami presence following public comments by New York Mayor Zohran Mamdani about higher taxes on second homes. The decision marks a strategic shift away from New York, where Griffin has clashed with local politicians over fiscal policy.

"We're doubling down on Miami," Griffin said at the Milken Institute Global Conference, according to people familiar with the matter. The hedge fund giant, one of the world's largest with over $60 billion in assets under management, is planning to increase office space and hiring in South Florida, building on a relocation trend that began when Griffin moved Citadel's headquarters from Chicago years ago.

The expansion comes after Mamdani, a Democratic socialist, proposed tax increases on high-value second homes, a move Griffin criticized as hostile to wealth creation. "Regulatory stability and tax predictability are key for us," Griffin said. A spokesperson for Mamdani's office did not respond to requests for comment.

Citadel's Miami outpost, already a hub for trading and technology teams, will see significant investment, according to insiders. The firm is expected to lease additional space in Brickell or nearby areas, adding hundreds of high-skilled jobs. Local officials have welcomed the news, with Miami-Dade County Mayor Daniella Levine Cava calling it "a vote of confidence in our region's economic future."

The decision reflects a broader industry shift. Financial firms are increasingly favoring states like Florida and Texas over New York and California, citing lower taxes and lighter regulation. This trend has accelerated under New York's progressive tax policies, which have sparked debates about capital mobility and regional inequality.

For New York, Citadel's reduced footprint could mean lost tax revenue and job growth. For Miami, it reinforces the city's emergence as a rival financial center, with firms like Blackstone and KKR (KKR) also expanding there. Industry analysts predict further relocations if political tensions persist.

Correction: An earlier version of this article misstated Mamdani's proposal as applying to all second homes; it specifically targets properties valued over $5 million.