McKinsey agrees to transfer control of its $20 billion investment business to Roubaix

McKinsey has agreed to transfer control of its approximately $20 billion investment business to Lazard. This business has been managed by current and former partners of the consulting firm for decades through complex hedge funds and alternative investment strategies. This deal marks a significant expansion for Lazard and opens a new chapter for McKinsey, known for serving blue-chip companies and governments. McKinsey has been evaluating various options for its fund management business MIO Partners over the past year or so. According to the statement, this transaction is still subject to regulatory approval, and under the arrangement, MIO's financial advisory business and approximately 280 employees are expected to be integrated into Lazard and operate as a division of the company. Financial terms were not disclosed. The core portion of the $20 billion in assets taken over by Lazard is allocated to alternative investment strategies, specifically flagship special situations strategies aimed at outperforming benchmark indices through selected stocks, bonds, and other assets. MIO's assets also include approximately $6 billion invested in passive index funds.