Everybody knows the prestigious consulting firm McKinsey, but hardly anyone knows the powerful McKinsey family office MIO Partners (McKinsey Investment Office). MIO manages pension plan investments in the amount of more than $9.5BN for current and former partners. If you’re looking for more family offices in the U.S. check our list of single offices in the United States.
Family Office for former McKinsey executives
More than 100 investment professionals are managing the pension plans of McKinsey partners. MIO is divided in a investment management and advisory team. The investment management team deals with pensions and investment products of independent third-party fund managers. According to MIO, the firm invests on a “blind trust” basis, meaning that partners don’t know their actual holdings, thereby avoiding a conflict of interest, while experts in a Financial Times article claim the contrary. The MIO Partners advisory team deals with financial advice and wealth management topics.
Secret investments, high returns
A McKinsey partner must have a net worth above $1M to invest in MIO Partners. When it comes to investments, the firm trusts leading hedge funds and sometimes also engages in direct investments (like “National Bank Holdings”). According to Financial Times, MIO Partners has earned hundreds of millions of dollars for McKinsey partners and achieved superior returns. On the other hand, Institutional Investor also reports in an article from July 2019 about some bad investments of MIO: for example, the firm lost $90M in an investment in the “New Stream” hedge fund – and even more through thorwing “good money after bad money” in the subsequent years.
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