2024-12-28 02:59:41 :
(Bloomberg) — Peak6 Investments will move its global headquarters from Chicago to Austin, making it the latest financial firm to scale back its presence in the Midwestern city.
The company, whose portfolio spans early-stage businesses and professional sports teams, said the move will bring its management team closer to its employees, most of whom are already in Texas. Even after the change, the company will maintain its Chicago office.
“Texas has been a cornerstone of PEAK6’s growth for more than a decade,” co-CEO Matt Hulsizer said in a statement.
Chicago and Illinois have experienced several high-profile corporate departures in recent years, including Ken Griffin’s Citadel, Caterpillar Inc. and Boeing Co.
Chicago’s progressive Mayor Brandon Johnson has done little to stem the flow of people since taking office in 2023, and donors and business leaders are already preparing to challenge him in 2027. The city has been working to increase revenue and funding as its budget deficit approaches $1 billion. Plans to tax the wealthy have spooked some businesses.
Texas has been the main beneficiary of a wave of blue-state business relocations since the start of the Covid-19 pandemic, with the likes of Chevron Corp and Elon Musk’s Tesla Inc coming to the Lone Star State Seeking lower taxes. Regulations are looser and the weather is generally nicer. Peak6 said Austin’s educated workforce, business environment and culture were the main reasons for the move.
Hulsizer and his co-founder Jenny Just founded the company in 1997 as an options trader and have since expanded into other areas such as financial technology, cryptocurrency and insurance. In November, Bloomberg News reported that Peak6 sold its minority stake in a holding company that operates Premier League soccer team Wolves. The company previously held stakes in another Premier League team, Bournemouth, and Italian club Roma.
—With the assistance of Isis Almeida.
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