Consulting firm McKinsey & Co. has agreed to transfer its investment arm, MIO Partners, which manages $26 billion in total assets, to asset manager Neuberger Berman.

MIO Partners is an investment and wealth manager for McKinsey’s partners, current employees, and former partners. As part of the transfer, MIO will add $20 billion in alternative investment strategies to Neuberger’s assets under management.

MIO Partners manages another $6 billion in passive index funds that were excluded in the transaction, a spokesperson told Connect Money.

Neuberger will onboard MIO’s investment teams, which manage alternative investment strategies and its advisory business that serves McKinsey partners, as well as the associated supporting functions, McKinsey said. 

“We are grateful for our longstanding partnership with McKinsey and will continue to provide our flagship Special Situations strategy and, with the added capabilities that Neuberger brings to the table, even more robust financial advisory services for current and former McKinsey partners,” Basil Williams, CEO of MIO Partners, said. 

The handover, which was initially launched as part of a “strategic review” last year, is set to close later this year. The transfer is subject to approval, which also includes client approval, McKinsey said. 

MIO Partners, which is a wholly-owned subsidiary of McKinsey and was formed in the early 1980s, has about 250 people overseeing retirement and after-tax investments for roughly 30,000 current and former McKinsey staffers, including access to alternative investments.  

MIO will add its capabilities to Neuberger’s investment platform across public and private markets, to enhance its services for its clients, McKinsey said.

In December, Neuberger closed its private debt fund, NB Private Debt, at $7.3 billion. The fund will primarily invest in senior-secured, first-lien, and unitranche loans to high-quality, U.S. private equity-owned companies.  

In October 2024, Neuberger Berman Capital Solutions and funds managed by Neuberger Berman Private Markets have taken a significant minority stake in Mariner Wealth Advisors, deepening its footprint in the wealth management sector as an investor.

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