Why Consulting Firms Are Building Private Equity Capabilities

Why are top consulting firms like McKinsey, BCG, and Bain building internal private equity capabilities? In this episode, Lucas and Luna explore a quiet but powerful trend: consultancies launching co-investment arms and dedicated PE advisory practices. Lucas breaks down how McKinsey's 2025 move to set up a dedicated co-investment team—deploying over $2 billion alongside PE firms—signals a structural shift in the industry. Luna questions whether this blurs the line between advisor and investor, and whether consultancies can manage the conflict of interest. They discuss real examples, including Bain Capital's spin-off and BCG's minority stakes in portfolio companies. The conversation drills into how these firms are buying equity rather than just billing hours, and what it means for their clients. If you work in professional services or private equity, this 10-minute episode will change how you think about consulting business models. #Consulting #PrivateEquity #McKinsey #BCG #Bain #CoInvestment #ProfessionalServices #BusinessStrategy #Advisory #InvestmentBanking #ConsultingFirms #Equity #BusinessModel #ConflictOfInterest #FexingoBusiness #BusinessPodcast #ServiceBusinessTalks #Finance Keep every episode free: buymeacoffee.com/fexingo