Neuberger Acquires McKinsey's $26B MIO Arm in Strategic Alternatives Play

NEW YORK, NY – February 10, 2026 – In a significant move set to reshape a corner of the asset management world, global investment manager Neuberger Berman has entered into an agreement to acquire MIO Partners, the exclusive investment and wealth management arm of consulting giant McKinsey & Company. The deal will transfer MIO's $26 billion in assets under management, including its highly regarded alternative investment strategies, to Neuberger Berman's sprawling platform.

The transaction, announced jointly by the two firms, marks the culmination of a strategic review initiated by McKinsey in early 2025. This review was prompted by the substantial growth of MIO, which has evolved over 25 years from an internal service into a formidable asset manager serving McKinsey's partners, employees, and alumni. The agreement is expected to close later in 2026, pending customary regulatory approvals and, crucially, the consent of MIO's clients.

"For more than 25 years, MIO has delivered distinctive services to McKinsey's partners, colleagues, and alumni," said Bob Sternfels, Global Managing Partner of McKinsey & Co. "McKinsey set out to find a long-term partner that could build on what makes MIO great. Neuberger is that partner."

Neuberger's Strategic Push into Alternatives

For Neuberger Berman, a private, employee-owned firm with $563 billion under management, the acquisition is a calculated strategic enhancement rather than a simple growth in assets. The core of the deal lies in the integration of MIO's sophisticated investment capabilities, particularly the approximately $20 billion managed in alternative strategies. This move significantly deepens Neuberger's footprint in the lucrative and complex world of private markets and hedge fund-like approaches.

A key prize is MIO's flagship "Special Situations" strategy, known for its all-weather, multi-strategy investment approach. This will be integrated into Neuberger's existing platform, which already has a presence in the space with its own special situations funds. The addition of MIO's teams and expertise is expected to create a more powerful and versatile offering. This aligns perfectly with Neuberger's recent strategic initiatives, which have included raising substantial capital for private equity, GP-led secondaries, and private credit funds aimed at both institutional and individual investors.

Beyond the investment strategies, Neuberger is acquiring a valuable and unique client base. MIO currently serves approximately 30,000 current and former McKinsey staffers—a highly affluent, financially sophisticated, and loyal network. The acquisition provides Neuberger with a direct line to these "sticky, high-quality private wealth relationships," a coveted asset in the competitive wealth management landscape.

"We are honored to be selected by McKinsey to be their partner in preserving and protecting MIO's special capabilities," stated George Walker, Chairman and CEO of Neuberger. He emphasized the "strong cultural alignment" between the two employee-owned firms, a point echoed by all parties to reassure clients of a smooth transition.

McKinsey's Calculated Divestiture

The decision by McKinsey to divest its thriving investment arm reflects a strategic pivot toward its core consulting business and a concurrent move to de-risk its corporate structure. As MIO's assets and complexity grew, it began to resemble an external asset manager more than an internal perk, creating potential operational and reputational challenges for the consulting parent.

By divesting the majority of MIO, McKinsey streamlines its operations and sheds the inherent complexities of running a regulated financial institution. This move also addresses, at least structurally, the potential for conflicts of interest. In 2021, MIO Partners paid an $18 million fine to the SEC to settle charges over inadequate controls to prevent the misuse of material nonpublic information that McKinsey's consultants might possess from their client work. While the firm has since enhanced its compliance protocols, spinning off the investment arm to a dedicated, independent manager like Neuberger Berman creates a clearer separation and mitigates future risk.

Notably, the deal is not a complete exit. Reports indicate that McKinsey will retain approximately $6 billion in MIO's more straightforward passive and index-tracking strategies. This allows the firm to continue offering a simplified investment option for its employees while offloading the more complex and highly regulated alternative investment business.

A New Home for MIO Clients and Teams

Both Neuberger and McKinsey have stressed that continuity of service is a primary goal. The agreement stipulates that Neuberger will onboard MIO's investment teams and its advisory business, ensuring that the same professionals who have managed the wealth of McKinsey's network will continue to do so.

This continuity is a cornerstone of the deal's structure, which requires explicit client consent to proceed. MIO's leadership has framed the transition as an upgrade, combining MIO's bespoke service with Neuberger's broader resources.

"I am confident that MIO and our clients will benefit from Neuberger's world-class, well-resourced investment platform and private wealth capabilities," said Basil Williams, Chief Executive Officer of MIO. Kevin Clancy, MIO's co-CIO and leader of the Special Situations strategy, added that the team expects to be "well supported in that effort within Neuberger's collaborative investment culture."

As the teams prepare for integration, the focus will be on navigating the regulatory approvals from bodies like the SEC in the US, the FCA in the UK, and BaFin in Germany. The successful merger of these two culturally aligned but distinct entities will depend on delivering the promised continuity and enhanced capabilities to a discerning client base, marking a new chapter for the wealth of one of the world's most influential consulting firms.