PIMCO, one of the world’s biggest asset managers, said Tuesday it has chosen Austin for its third U.S. office and plans to hire dozens of employees.
The Austin office “will have a significant technology presence” and is expected to open in the summer and will likely expand to about 200 workers, mostly new hires, by 2019, according to a statement from the company.
The move comes as PIMCO, an acronym for Pacific Management Investment Co., seeks to recruit tech talent and broaden its marketing reach in the United States.
“Austin will plan an important part in PIMCO’s continued growth and we are excited to become part of this vibrant, innovative community,” Emmanuel Roman, PIMCO’s CEO, said in a written statement.
The company, which manages about $1.7 trillion in assets, currently has its headquarters in Newport Beach, Calif., and an office in New York.
PIMCO, which has more than 2,100 workers, did not say where the Austin office would be located.
“The office will have a significant technology presence, but also other functions including U.S. global wealth management, institutional client management, marketing and other business groups which may benefit from local talent pools,” the company said in a statement.
Gary Farmer, chairman of economic development effort Opportunity Austin, said the fact that PIMCO chose Austin as a key part of its job growth and expansion strategy is a “major win” for the community.
“It underscores the great qualities we have built through the years that make our region attractive to companies offering diverse employment options,” Farmer said.
PIMCO chose the Austin location mostly because of high cost and competition recruiting skilled tech workers to Newport Beach and New York, according to a report by Bloomberg.
Financial firms including PIMCO and BlackRock are increasingly turning to advanced technology such as artificial intelligence for portfolio management, economic forecasting and other operations, the report said.
In an interview with Bloomberg earlier this month, Roman used Charles Schwab Corp. as a model of a financial firm that has grown outside of its California base to recruit technologists. Schwab now has offices in Austin, Phoenix, Denver and Dallas.
“We scrubbed the whole of the U.S. in terms of tech talent, location, airport, taxes, what have you,” Roman said, adding that the core of the firm will remain in Newport Beach.
The Austin office will be led by Patrick Feigley, executive vice president and head of U.S. Global Wealth Management Sales.