Fabrice COFFRINI / AFP via Getty Images
- Last week, NYC Mayor Zohran Mamdani named billionaire Ken Griffin as someone who should pay more taxes.
- Mamdani has proposed a pied-à-terre tax on non-primary homes worth over $5 million.
- Griffin's deputy defended his boss's record in NY and hinted at a possible pullback from the Big Apple.
Billionaire Ken Griffin was targeted last week by New York City Mayor Zohran Mamdani — and now the Citadel founder's right-hand man is suggesting the hedge fund could rethink a $6 billion project.
The clip shared by Mamdani called out Griffin by name as the mayor and his allies tout an additional tax on second homes in the city worth at least $5 million. Griffin, whose two financial companies are based in Miami, bought his $238 million New York penthouse in 2019 and employs nearly 2,500 people in the Big Apple.
A Thursday companywide memo from Gerald Beeson, the chief operating officer of Citadel, the $67 billion hedge fund Griffin runs, hints that the firm might not pursue a $6 billion redevelopment project for one of its midtown offices because of the "shameful" targeting of his boss.
"The Mayor has once again manifested the ignorance and disdain of the elite political class towards those who have been consistently committed to building one of the greatest cities in the world," the memo reads.
Citadel is set to redevelop350 Park Avenue, which Beeson said wouldcreate6,000 construction jobs and support the creation of more than 15,000 permanent jobs in New York.
"The project — if we move forward — will entail more than $6 billion dollars of spending," he said.
Griffin, a behind-the-scenes political player and one of the largest GOP donors in the country, has fought with city officials before. He criticized the leaders of his firms' original headquarters, Chicago, particularly the city's handling of crime. He moved Citadel and its sister marketmaking firm, Citadel Securities, to Miami in 2022.
Cutting ties with New York might be more challenging for the hedge fund, which is battling other investment managers for top trading pros in an ongoing war for talent. Despite headlines about an exodus from the high-tax city, New York still reigns supreme among top funds and its employees, according to investment managers' regulatory filings.
Read the memo in full below:
Colleagues,
New York Governor Hochul recently remarked: "What I want to make sure we are smart about is having a system in place where it's not just taxing for the sake of taxing and being conscious of the fact that I need people who are high net worth to support the generous social programs that we want to have in our state." It is clear that Mayor Mamdani is not interested in that advice. Last week, in a social media-ready video filmed in front of Ken Griffin's residence entitled "Happy Tax Day, New York. We're taxing the rich," the Mayor unveiled a new tax targeted at individuals from out of state who own New York City residences.
From his comments, it is apparent that the Mayor's view is that these individuals do not contribute enough to the greater good. It is shameful that he used Ken's name as the example of those who supposedly aren't carrying their fair share of the burdens associated with New York City's often costly and wasteful spending. In doing so, the Mayor has once again manifested the ignorance and disdain of the elite political class towards those who have been consistently committed to building one of the greatest cities in the world.
I thought it would be helpful to share a few facts about the significant commitment of Citadel, Citadel Securities and Ken Griffin to New York City:
- Over the past five years, our principals and team members (including non-residents) have paid nearly $2.3 billion dollars in city and state taxes, providing funds to support the City's infrastructure, schools, parks, and first responders. Additionally, we support hundreds of jobs through the service providers we engage.
- We are about to commence the redevelopment of 350 Park Avenue, creating 6,000 highly paid construction jobs and supporting the creation of more than 15,000 permanent jobs in mid-town New York. The project — if we move forward — will entail more than $6 billion dollars of spending.
- Nearly two hundred of our team members serve on the boards of charitable institutions in New York — giving their intellectual and financial capital in support of the community.
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Ken has personally directed $650 million in charitable gifts to support the people of New York City, including:
- Robin Hood Foundation — the largest poverty-fighting organization in the city
- Success Academy Charter Schools — an extraordinary K-12 public charter school network that has been life changing for the tens of thousands of students that otherwise would be trapped in New York's chronically underperforming public schools
- World-class healthcare institutions such as Memorial Sloan Kettering, Hospital for Special Surgery, Weill Cornell, and NYU Langone
- Renowned cultural institutions such as American Museum of Natural History, The Whitney, The Met, and MoMA
For more than 25 years, our New York offices have been a vital hub of dynamism in the financial life of the city — and our country. We have nearly 2,500 colleagues who have chosen to build their careers here — drawn by the opportunity to do meaningful work at the center of the world's financial capital. We understand that our hard work and success will, on occasion, make us targets for political rhetoric. But it should not diminish the pride we take in building firms that will continue to help New York City thrive for decades ahead.
Sincerely,
Gerald Beeson
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