McKinsey hands control of USD20b investment arm to Neuberger Berman
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The news: McKinsey & Co agreed to pass control of its USD20 billion ($28.27 billion) investment arm, MIO Partners, to asset manager Neuberger Berman. McKinsey had been considering options for MIO for around a year.
The numbers: Under deal, Neuberger will onboard MIO’s investment teams that manage alternative investment strategies and its advisory business that serves McKinsey partners, as well as the associated supporting functions. Around 280 MIO employees are expected to join Neuberger Berman. Financial details of the transaction were not disclosed.
The context: MIO, an investment manager serving McKinsey’s employees, and alumni that has USD26 billion in assets under management, including USD20 billion in alternative investment strategies.
The agreement is expected to close in 2026 and is subject to regulatory approvals.
Ardea Partners advised McKinsey on the agreement, with Simpson Thacher & Bartlett providing legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Neuberger.
What they said: “Considering its significant growth and product expansion, McKinsey has decided it was no longer the best and most natural owner of such a large investment and advisory firm, particularly as it’s so far from our core expertise and strategic focus,” Pooneh Baghai, a senior partner and board member at McKinsey told Bloomberg. “Neuberger is the best long-term steward of MIO. It’s what they do, and we’re thrilled to partner with them.”
The sources: McKinsey & Co, Bloomberg
