Neuberger Berman has agreed to assume control of MIO Partners, the $20bn investment arm of McKinsey & Co, in a transaction that brings one of the most established in-house hedge fund and alternative investment platforms under the ownership of a global asset manager, according to a report by Bloomberg.
The deal, subject to regulatory approval, will see MIO’s investment advisory business and around 280 employees transfer to Neuberger, where the unit will continue to operate as a distinct platform. Financial terms have not been disclosed.
MIO Partners manages the personal capital of McKinsey’s current and former partners, with the majority of assets allocated to alternative investment strategies. These include a flagship special situations strategy spanning public equities, credit and other opportunistic investments, alongside a smaller allocation to passive index strategies.
For Neuberger, which oversees $563bn in assets, the transaction represents a significant expansion of its hedge fund and alternatives footprint. Chief executive George Walker said the firm may ultimately consider opening MIO’s core strategies to external investors, while also broadening the platform’s exposure to private markets.
MIO traces its origins to the mid-1980s and has operated as an independent manager for McKinsey partners since 2000, albeit as a wholly owned subsidiary. McKinsey said the scale and scope of the business had outgrown its strategic focus as a consulting firm, making Neuberger a more natural long-term owner.
