Some of AllianceBernstein’s functions like portfolio management will stay in New York, workers from legal, sales and marketing, and finance will begin moving to Music City this year. Chief Executive Officer Seth Bernstein will join them in Nashville in 2020.
The company will invest more than $70 million to set up its Nashville headquarters, the Tennessee Department of Economic & Community Development said.
Bloomberg reports that AllianceBernstein is not the only finance giant to sour on the Big Apple. Goldman Sachs Group Inc. has built up operations in Salt Lake City, while Deutsche Bank AG has expanded in Jacksonville, Florida.
The Wall Street Journal said the rush to leave New York started after the last financial crisis as finance companies looked to cut expenses and find lower tax rates. The tax plan Congress passed earlier this year is also a factor as many of these companies relied on the deductibility of mortgage interest and state and local tax deductions, the newspaper said.