Capital Group, one of the world’s largest active asset managers with $3.4 trillion in assets, is bringing a major East Coast operations hub to Charlotte, a project expected to create 600 jobs, generate more than $116 million in annual payroll, and drive an estimated $5.2 billion in economic impact across North Carolina.
“Charlotte stood out as a natural fit for Capital Group’s next phase of growth,” said Capital Group COO Rob Klausner in a press release. “North Carolina’s strong financial services ecosystem, growing talent base and long-term outlook align closely with our priorities as a firm. This investment strengthens our operating resilience, supports better outcomes for our clients, and reflects our commitment to building careers and community alongside our associates in Charlotte.”
The privately owned company, headquartered in Los Angeles, has more than 90 years of investment management experience. Founded in 1931, Capital Group is known for its early stewardship of one of the country’s first mutual funds, the Investment Company of America.
The Charlotte hub will support the company’s growth across the U.S. and around the world. It also adds another major financial name to Charlotte’s expanding business and banking sector.
The project is being supported in part by a Job Development Investment Grant, or JDIG, approved by the state’s Economic Investment Committee. The agreement allows for potential reimbursements of up to $17.17 million over 12 years, but only if the company meets verified job creation and investment targets.
State officials said the project includes a planned $60 million capital investment. They also said the return on public dollars is projected at 341 percent, meaning the state expects to receive $4.41 in revenue for every dollar of potential cost.
Because the project is landing in Mecklenburg County, a Tier 3 county under North Carolina’s economic system, the agreement will also direct $5.72 million into the state’s Industrial Development Fund – Utility Account. That fund helps rural communities pay for infrastructure upgrades needed to attract future employers.
