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.
Loading audio narration…
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 redevelop 350 Park Avenue, which Beeson said would create 6,000 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:
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
