(The Center Square) – Performance-based incentives valued at $20.4 million, including $17.1 million from North Carolina, have landed Charlotte an asset management company from Los Angeles with $3.4 trillion in assets under management.
Capital Group will invest $60 million in the East Coast hub office plans to employ 600 people, officials with the Economic Investment Committee of the Commerce Department said Thursday.
Charlotte was chosen over Indianapolis, in part because of the tax incentives offered by the state, according to the state.
Capital Group is top 10 among industry peers for assets under management. BlackRock and The Vanguard Group are the leaders, each estimated double third-place Fidelity.
“Charlotte stood out as a natural fit for Capital Group’s next phase of growth,” Rob Klausner,the company’s chief operating officer, said in a statement. “North Carolina’s strong financial services ecosystem, growing talent base, and long-term outlook align closely with our priorities as a firm.”
The Job Development Investment Grant will be awarded over 12 years if the company meets the promised number of jobs and investment.
Another $2.2 million from the state is coming through training support in the North Carolina Community College System and the Division of Workforce Solutions. The city of Charlotte and Mecklenburg County ponied up $1 million through property tax reimbursements.
“JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company,” the state said in a release.
Capital Group was founded in 1931 and is known as the manager of one of the oldest mutual funds in the United States, the Investment Company of America.
Charlotte also has a long history as a banking and financial services hub.
For the last two years, it has ranked second on Site Selection magazine’s list of best cities in the U.S. for corporate headquarters.
Last year, it was selected for global or regional headquarters by Scout Motors, Maersk North America and Daimler Truck Financial.
The new Charlotte office will help Capital Group expand its “ geographic reach,” and diversify its U.S. presence, the company said in a news release.
The Charlotte hub will host “key operational roles” such as legal and compliance, technology, and data, Capital Group said.
