Finance Firm PEAK6 Investments to Relocate Global Headquarters to Austin, Texas
PEAK6 Investments, a global investment firm, is set to transfer its global headquarters from Chicago to Austin, Texas, marking the latest finance firm to scale back its operations in the Midwestern city.
Reasons for the Move
The company, with a portfolio spanning early-stage businesses to professional sports teams, cited the need to place its executive team closer to the majority of its workers, who are already based in Texas. The firm will maintain a Chicago office even after the relocation. Co-CEO Matt Hulsizer emphasized the significance of Texas in PEAK6’s growth, stating, "Texas has been a cornerstone of PEAK6’s growth for over a decade."
Chicago’s Corporate Exodus
Chicago and Illinois have faced several high-profile corporate departures in recent years, including Ken Griffin’s Citadel, Caterpillar, and Boeing. The city’s progressive mayor, Brandon Johnson, has struggled to stem the flow of businesses leaving the city, and donors and business leaders are already preparing to challenge him in the 2027 election. The city’s budget deficit is nearing $1 billion, and its plan to tax the rich has frightened some businesses.
Texas as a Corporate Haven
Texas has been a primary beneficiary of a wave of corporate migration from blue states since the Covid-19 pandemic, with firms such as Chevron and Elon Musk’s Tesla relocating to the Lone Star State in pursuit of lower taxes, lighter regulation, and a more favorable business climate. PEAK6 cited Austin’s educated workforce, business climate, and culture as key reasons for the move.
Company Background
PEAK6 was founded in 1997 by Hulsizer and his co-founder, Jenny Just, as an options trader. The company has since expanded into other fields, including financial technology, cryptocurrency, and insurance. In November, Bloomberg News reported that PEAK6 had sold its minority stake in a holding company that operates Premier League soccer team Wolverhampton Wanderers. The company previously held stakes in another Premier League team, AFC Bournemouth, and Italian club AS Roma.
Conclusion
The relocation of PEAK6’s global headquarters to Austin, Texas, is the latest in a series of high-profile corporate departures from Chicago. As cities like Austin and Texas continue to attract businesses with more favorable tax and regulatory environments, cities like Chicago must adapt to remain competitive.
FAQs
Q: Why is PEAK6 relocating its global headquarters to Austin, Texas?
A: PEAK6 is seeking to place its executive team closer to the majority of its workers, who are already based in Texas.
Q: What are the reasons for the move?
A: The firm cited Austin’s educated workforce, business climate, and culture as key reasons for the relocation.
Q: What is the current state of Chicago’s business landscape?
A: Chicago has faced several high-profile corporate departures in recent years, and its progressive mayor, Brandon Johnson, has struggled to stem the flow of businesses leaving the city.
Q: Is Texas a popular destination for corporations?
A: Yes, Texas has been a primary beneficiary of a wave of corporate migration from blue states since the Covid-19 pandemic, with firms seeking lower taxes, lighter regulation, and a more favorable business climate.
