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McKinsey is thinking of rotating his home assets manager Mio Partners, who invests the private wealth of the old counseling firm staff and Alumni.
The firm said he had hired Ardea Partners, a boutique investment bank founded by former Goldman Sachs trade, for a strategic compilation of Mio, which has become careful from years of controversy over possible conflicts of interest with McKinsey’s counseling work .
Mio has grown to manage $ 23 billion in wealth. This includes McKinsey’s current partners nesting but the unit also deals with the wealth of a wide network of alumnis and their families.
In 2021, the US Insurance and Exchange Commission fined MIO $ 18 million, claiming it had inappropriate internal controls and that partners who overseen MIO investments routinely access confidential information about financial results , their customers’ financing agreements and plans.
The Fine SEC followed the report by The Financial Times in 2016, which revealed details of MIO secret operations, and raised questions about how the information collected from counseling was affecting investment decisions.
Since then, business has rebuilt its rule and says Mio’s operations are “deliberately separated” from the advisory arm.
McKinsey said her strategic review would consider the relationship between Mio and the firm “to ensure that she complies with the best long -term interests of McKinsey and Mio customers”.
He said he will “appreciate various strategic guidelines and alternative ownership structures”, but will also ensure “continuity of management, investments and his advisory teams”.
“A successful result will enable Mio to expand his field of operations and use his ability to create value for its investors,” he added.
In recent years, the rules of governance created to prevent potential conflicts of interest have meant that MIO does not invest in individual shares or bonds of any public or private company.
On the contrary, it follows macro trading strategies that include trading assets such as sovereign debt, goods, exchange currencies, net capital indices and credit indices, according to its website, and regulatory registrations show that he invests heavily in funds managed from outside.
