Aon announced Wednesday that is has agreed to sell a “significant majority” of NFP’s wealth management business to Madison Dearborn Partners, the private equity firm.
The deal includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms. It comes a little less than two years after Aon bought NFP from Madison Dearborn for $13 billion.
At the time, Aon executives highlighted NFP’s property-casualty and employee benefits brokerage services as drivers of the transaction, with the firm’s wealth management and retirement plan advisory businesses then generating only about 17% of NFP’s annual revenue.
Under the terms of the new transaction, Madison Dearborn will acquire the wealth businesses for an estimated $2.7 billion at the time of close, resulting in total after-tax cash proceeds of about $2.2 billion. The businesses represent about $127 million in EBITDA for the trailing 12-month period ending June 30, according to the announcement.
The transaction is intended to reinforce Aon’s focus on “core risk capital and human capital capabilities and presence” in the middle market.
In a statement, Vahe Dombalagian, Madison Dearborn's managing partner and co-head of financial services, called Aon a “great partner." He suggested that the firms are pleased to deepen their relationship.
“For more than twenty years, we have successfully generated value for our portfolio companies in the financial services sector and are tremendously excited to welcome these outstanding businesses back to MDP,” Dombalagian added.
Greg Case, CEO of Aon, said the deal will strengthen the firm’s capital position while enabling greater flexibility for high-return growth investments.
“We remain highly committed to our core wealth and retirement business helping employers, fiduciaries and investment officers through our leading institutional retirement, investment consulting and delegated management capabilities and expertise,” Case said.
Following the close of the transaction, the reacquired businesses will be consolidated and operate under a unified brand name, according to the announcement. The company will be led by Michael LaMena, CEO of Wealthspire Advisors, as CEO. Carl Nelson, head of mergers and acquisitions for NFP, will serve as president of the unified entity.
“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,” said Doug Hammond, CEO of NFP. “We look forward to continuing to accelerate growth in our middle market-focused businesses by helping clients overcome challenges and meet their goals.”
The transaction is expected to close late in 2025, subject to customary closing conditions, including receipt of regulatory approvals.
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