Private equity firm Madison Dearborn Partners is taking back control of wealth management assets it sold a little over a year ago. The Chicago-based private equity firm announced Wednesday it is buying most of Aon Plc’s wealth management operations for $2.7 billion.
Madison Dearborn, which is active in the wealth and retirement sector, has agreed to purchase NFP’s wealth businesses Aon took on when it closed its acquisition of the insurance, benefits and wealth management firm in April 2024. The assets include known names in the registered investment advisor space, Wealthspire Advisors, Fiducient Advisors and Newport Private Wealth.
The firms will be brought under one brand at the close of the transaction, which is expected in the fourth quarter of this year. According to a spokesperson, they will have about $60 billion in assets under management and another $500 billion under assets under administration, showing NFP’s majority position in the retirement plan space.
The firms did not disclose the brand’s name and declined interviews beyond the announcement.
Wealthspire CEO Michael LaMena will lead the unified firm, which will be another entrant into the mega-RIA category seeking to leverage scale to retain and win clients and advisors. Carl Nelson, currently head of M&A for NFP, will be president of the new business.
“With MDP’s support, these companies will continue to thrive, working together to grow organically and through acquisitions, enhance the value they deliver to clients and create new opportunities for employee development,” Doug Hammond, CEO of NFP, said in a statement.
The combined wealth businesses represented about $127 million in earnings before interest, taxes, depreciation and amortization for the 12 months ending June 30. According to the announcement, Madison Dearborn’s purchase price of $2.7 billion will amount to total after-tax cash proceeds of about $2.2 billion.
The private equity firm has raised over $31 billion in capital and made more than 160 investments.
Aon agreed to buy NFP for about $13.4 billion in cash and stock in 2023 from funds affiliated with Madison Dearborn Partners and HPS Investment Partners.
For their part, Aon and NFP will focus their business on insurance and benefits, with a focus on the middle market.
“This transaction reinforces our ongoing commitment to investing in and growing our core Risk Capital and Human Capital capabilities,” Aon CEO Greg Case said in a statement.
If the transaction clears closing, it will impact Aon’s full-year 2025 earnings results, though the New York Stock Exchange-listed firm with a market capitalization of about $80 billion said the impact will not be material.
UBS Investment Bank and Moelis & Company advised Aon on the deal, while Goldman Sachs bankers advised Madison Dearborn.
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