In the world of finance, Wall Street remains a juggernaut, with firms along the historic thoroughfare making investment decisions with global implications. But as economic dynamics shift across the country, some on Wall Street are looking westward — and Ben Vega, executive director of the Arizona Fund Manager Association (AFMA), is showing them why the desert is ripe for dealmaking.
“For the longest time [our state] has been known as a real estate community without many investors in other areas,” he explains. “Even [within Arizona], there’s this perception that you have to go to New York if you want to raise money.”
Cities with a well-established ecosystem can lean on a multigenerational legacy to attract investors — something the Grand Canyon State lacks. That reputation, however, is starting to shift. According to AFMA, its membership has grown nearly 77% year-over-year as the association has worked to establish the state as a premier location for fund managers, venture capital and others in the asset management sector.
“As Arizona has garnered more national recognition, companies are realizing the pro-business nature of our state, whereas places like New York and California are not,” Vega continues. “It’s getting harder to work and live there, and people are starting to look at other options.”
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Over the last two years, Vega notes that interest in the state continues to grow.
“People are starting to seriously look at locating in Arizona,” he continues. “Our goal at AFMA is to drive that conversation because the finance and investment industry hasn’t done a great job of marketing itself.”
That’s why the association is hosting its annual LIFT AZ summit on March 12 — to prove that coastal cities don’t have a monopoly on financial talent.
“The whole point is to showcase that qualified professional investment managers exist here in your backyard,” Vega says. “You don’t have to rely on New York firms to manage and invest your money.”
Keeping these dollars within the state’s borders does more than give a boost to local companies. Vega notes that Arizona’s pension funds and the state land trust represent nearly $110 billion of taxpayer dollars.
“Where do you think that money is invested? It’s not in Arizona,” he concludes. “All that money is going to other states, which means we’re not collecting the tax revenue or benefitting from the jobs created through those investments. By building out the investment ecosystem locally, we’ll help Arizona’s economy grow and keep young talent here.”
