The company selected Austin over Miami and Palm Beach, according to sources cited by the Financial Times. The firm, which was founded in New York in 1990, had also considered Nashville as part of an internal review of potential expansion sites, the sources said.
Private equity is the core of Apollo’s business, it says, and it had $67 billion in assets under management as of March 31. According to its latest regulatory filings, its major holdings include Phoenix Education Partners Inc., VanEck ETF Trust-VanEck Semiconductor ETF, Hilton Grand Vacations Inc., ADT Inc. and Grupo Aeroméxico.
Apollo holds a controlling stake in San Antonio-based Rackspace Technology, Inc. The asset management firm took the cloud computing company private in 2016 as part of a $4.3 billion acquisition, then took it public again in 2020.
Apollo-managed funds own about 52 percent of Rackspace shares which trade on NASDAQ under the ticker RXT. Shares closed at $5.44 Friday, up about 460% since the beginning of the year.
Apollo’s planned second headquarters reflects a broader trend of financial firms expanding in Texas.
“New York does not have a monopoly on talent, and we expect most of our future growth will take place in our second HQ,” Apollo told the Financial Times earlier this year.
Brandon Lingle contributed to this report.