'Wall Street South' beckons financial services firms

Beautiful weather, pristine beaches and art deco architecture are only a few of the reasons Miami has been so attractive to so many over the years. More recently, a new influx of people has been flocking into town looking for some of that Miami magic – investment bankers, hedge fund managers and other financial professionals.

Already gaining popularity with financial services and fintech companies for over a decade, Miami and its environs experienced an incredible boom during the pandemic that shows no signs of slowing, transforming the area from a vacation destination into a true global financial hub.

MORE THAN JUST NICE BEACHES

Today, Miami ranks as one of world’s top financial centers, with major companies moving in, bringing solid job growth and robust demand for office space.

Recently, Miami made its debut appearance in a key ranking of the world’s top financial centers, coming in at No. 7 for the U.S. and No. 24 worldwide in the 34^th edition of the Global Financial Centers Index.

This impressive ranking reinforces what we're seeing on the ground. Since 2020, Goldman Sachs Group, The Blackstone Group, Carl Icahn’s Icahn Capital Management, Peter Thiel’s Founders Fund and Ken Griffin’s Citadel have all relocated offices to Miami.

RIGHT AT HOME IN MIAMI

Many of these developments have influenced Kingswood's decision to open our flagship office in the Brickell neighborhood in the heart of Miami’s financial district. While we remain dedicated to our New York presence, we believe it is critical for a U.S.-based financial services firm to also have a meaningful footprint in South Florida, a critical hub for innovative companies

Our new office will serve as the home base for the firm's South Florida-based wealth management team, members of the investment banking divisions and several supporting departments. Most of the firm's leadership will have dedicated offices in the space.

With South Florida continuing to position itself as a critical hub for innovative financial services companies, we knew we had to take full advantage of this environment to benefit our clients and advisors. The new office places Kingswood’s investment banking and wealth management teams at the center of the action.

WALL STREET SOUTH

Change is blowing strong across the wealth management sector, and those firms that do not make an investment now will be forced to tack into the wind just to keep up.

Ken Griffin calls Miami “Wall Street South” and believes it could eventually unseat New York as the world’s financial center. “Miami, I think, represents the future of America,” said Griffin, praising the city’s “Incredibly vibrant economy” in recent remarks at the Citadel Securities Global Macro Conference in Miami that were reported in numerous publications. He is putting his money where his mouth is, investing more than $1 billion in a waterfront tower that will change the skyline of Miami and serve as Citadel’s headquarters.

In addition to these big players, registered investment advisors and broker-dealers are also making the move south. Between April 2020 and April 2021, Florida experienced the largest uptick in RIA registrations of any state, with the number of RIAs based in Florida increasing by nearly 5%, according to a report from SmartAsset.

Success breeds success, and as the city continues to attract financial companies and their well-educated and high-salaried staff, Miami and the surrounding area are set up perfectly for continued long-term growth.

Michael Nessim is CEO and managing partner at Kingswood Wealth Advisors.