By Xavier A. Gutierrez | Chairman & CEO, ImpactX Sports Group
Phoenix is a miracle of a city. Thanks to the ingenuity of Native Americans and an inventive canal system, later advanced by Salt River Project and others, sustenance and livelihood arrived in the harshest of environments.
The results have been remarkable as this dynamic, diverse place has risen to become the fifth-largest city in America. The Valley is a community of growth, of innovation, of leadership.
Yet there is a glaring omission if we want to continue to take our place amongst the great global cities. The greater Phoenix area should be the next great investment and financial center of the U.S. We should have major investment banks, private equity funds, venture capital firms, real estate and infrastructure investment firms headquartered here.
Why focus on making greater Phoenix a prominent investment and financial center?
First, this is an opportunity to positively impact our entire economy. When a concentration of financial institutions exists, the entire Valley benefits from the prestige, job creation and broader corporate support that comes from the presence of these types of firms and funds.
Second, young people, especially the graduates of Arizona’s colleges and universities, will have the opportunity to build careers in finance and investment here.
Third, community and civic organizations will benefit from the leadership, philanthropic support and business acumen from these firms and their executive teams.
Large credit unions, wealth management firms and back-office financial operations in the Phoenix metro are a good thing. But they should be part of a broader financial ecosystem, not its trademark. Investment management firms and their service providers should be attracted by the Phoenix area’s friendly business environment, talent pool and high quality of life.
Infrastructure, real asset and energy funds focused on the opportunities in the climate-resilient future of our planet should be planting their flag in our community. Private equity and private debt funds should become part of our business community.
As someone who has had a 30-plus-year career in banking, private equity and finance in addition to my most recent career in sports management, and now institutional sports investment, I am a firm believer that the Valley can and should take on the mantle as a major financial center. And this state knows how to get things done.
And this state knows how to get things done.
After the economic collapse of 2008, Arizona wisely created an Arizona Commerce Authority to make the state more competitive to recruit major businesses. Once deficient in manufacturing, portions of the Valley are now exceptionally evolving in this regard.
Thanks to the audacity of leaders before and current like Phoenix Mayor Kate Gallego, former Gov. Doug Ducey and current Gov. Katie Hobbs, we are becoming one of the new semiconductor chip capitals of the world.
Arizona’s economic success over the past 20 years shows extraordinary gains can happen. And I am very excited by the efforts of many public and private entities to attract more investment funds and firms. I recently participated in a Greater Phoenix Economic Council Ambassador Forum on “The Future of Finance” to discuss the opportunity we have to elevate the greater Phoenix metro as a major financial center.
Many investment and financial firms come to our community for their conferences and conventions, and many executives from that industry come to the Valley for their vacations or make this their part time home. We need to help them call this community their permanent home where they can be part of a thriving and impactful financial center.
Becoming a center of finance, capital and investment is Arizona’s next frontier. Let’s all come together, get to work and make it happen.
Editor’s note: Xavier A. Gutierrez is chairman and CEO of ImpactX Sports Group. He lives in Paradise Valley. Reader reactions, pro or con, are welcomed at AzOpinions@iniusa.org.
