These days, New York might not be the centre of wealth creation as much as California, but it’s still the centre for managing the assets of the country’s wealthiest individuals and families.
Out of Family Capital’s 450 top family/private investment offices in the US, 109 (24%) were based in the state of New York, and 98 of those were based in the greater New York City region.
Even if the number of private investment offices in the Greater Los Angeles and San Francisco areas is added together, which comes to 68 (37 in Los Angeles and 31 in San Francisco) New York City is still a third bigger.
Also, if towns in Connecticut like Greenwich, Westport, New Canaan, and Stamford, within commuting distance to New York City, are included another 16 private investment offices could be said to be connected to the conurbation of America’s most populous city.
The big concentration of private investment offices in New York City and its surrounds is a testament to the vast ecosystem of investment and finance expertise in the area. These resources continue to draw wealth from all over the country, unlike any other US city/region.
That said, cities like Chicago, Dallas, Boston, and of course Los Angeles and San Francisco, are active centres for private investment offices. After the two Californian cities, Greater Chicago and Forth Worth/Dallas were the next biggest centres for private investment offices, with 29 and 28 respectively. The greater Boston area had 12 private investment offices.
It’s notable some smaller cities and towns in the US have a sizable number of active private investment offices. These groups are often linked to family businesses, which grew in these cities and states – and the family still have very strong connections with those places.
Grand Rapids in Michigan has six private investment offices on the 450 list, so did Tampa, Florida; Pittsburg, Pennsylvania; and Seattle, Washington. Denver, Colorado has eight on the list. Austin, Texas has five and Oklahoma City, Oklahoma has four.
Also, many private investment offices in the US are based in much smaller cities and towns – altogether 56 were based in these centres, which weren’t necessarily close to major cities. Again, this is indicative that wealth in the US is still fragmented, despite the big centres of economic activity around New York City, Los Angeles, San Francisco, Chicago and Dallas.