CHARLOTTE — Gov. Josh Stein announced Thursday that Capital Group, a global asset management firm, will establish a major East Coast operations hub in Charlotte. The project includes a $60 million capital investment and is expected to create 600 new jobs in the region.
[ ALSO READ: Rural NC residents to get high-speed internet access with $26M funding ]
Capital Group is a Los Angeles-based company with more than 90 years of investment experience and $3.4 trillion in assets under management as of Jan. 26. The new hub is intended to support the firm’s growth in the United States and globally by tapping into North Carolina’s financial services talent pool.
Gov. Stein highlighted the region’s existing strength in the financial sector during the announcement.
“We’re excited that Charlotte’s reputation as one of the nation’s top banking centers has attracted Capital Group to establish its East Coast hub here,” Stein said. “North Carolina offers a talent pool that’s especially well suited to helping financial services companies like the Capital Group succeed in our state.”
The Charlotte office will serve as a primary hub for the firm’s next expansion phase. Rob Klausner, chief operating officer of Capital Group, said the state’s outlook aligns with the firm’s priorities.
“Charlotte stood out as a natural fit for Capital Group’s next phase of growth,” Klausner said. “North Carolina’s strong financial services ecosystem, growing talent base and long-term outlook align closely with our priorities as a firm.”
Klausner added that the investment is intended to strengthen operating resilience and support better outcomes for clients.
The move reinforces North Carolina’s standing in national business rankings. North Carolina Commerce Secretary Lee Lilley noted the state’s recent recognition by CNBC.
“It’s a pleasure to add a leader like Capital Group to North Carolina’s thriving industry cluster of financial firms,” Lilley said. “Our ranking as CNBC’s Top State for Business is validated once again with today’s announcement.”
The project is supported by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee.
This 12-year grant authorizes potential reimbursements of up to $17,173,500 based on the creation of 600 jobs. The new positions are anticipated to bring an annual payroll impact of more than $116 million to the Charlotte region.
Over the 12-year term, the project is estimated to grow the state’s economy by $5.2 billion.
The project offers a projected return on investment of 341%, meaning the state receives $4.41 in revenue for every dollar of potential cost. Because Charlotte is in Mecklenburg County, which is classified as a Tier 3 county, the agreement includes a $5,724,500 contribution to the state’s Industrial Development Fund – Utility Account.
This account provides infrastructure financing for rural and economically challenged communities across North Carolina.
Local and state representatives emphasized the teamwork required to secure the investment. North Carolina Rep. Becky Carney praised the coordination between various development groups.
“It takes close collaboration among our local, regional and state economic development teams to make an announcement like this possible and I appreciate the hard work put in by those teams,” Carney said. “We welcome the Capital Group to the City of Charlotte and we appreciate the many ways this company will expand opportunities for people in our region.”
Capital Group was founded in 1931 and manages the Investment Company of America, one of the first mutual funds in the United States. The new Charlotte hub is designed to support the company’s operations both domestically and internationally.
State payments under the JDIG agreement will occur only after performance verification by the departments of Commerce and Revenue. Capital Group must meet specific incremental job creation and investment targets to receive the grant reimbursements.
VIDEO: Gov. Josh Stein to discuss funding for Helene recovery
This browser does not support the video element.