Its $25 billion hedge fund, MIO Partners, manages money for thousands of McKinsey employees, retirees and alumni. McKinsey has said the fund is independently managed and has no conflicts of interest, but nine of its 11 board members, who oversee the investments, are current or past McKinsey partners. McKinsey’s disclosure practices had not been a major issue until Mr. Alix decided to raise them in a number of bankruptcies — including Westmoreland Coal in Houston, Alpha Natural Resources in Virginia, Standard Register in Delaware and SunEdison in New York. McKinsey has said Mr. Alix is trying to undercut the firm’s competitive position in order to help AlixPartners, the restructuring firm that he founded in 1981. Mr. Alix is retired, but he sits on the firm’s board and holds about a third of its stock.

Source: New York Times May 27, 2019 16:49 UTC