Aon Sells Wealth Arm to Madison Dearborn for US$2.7bn
Aon has agreed to sell a significant majority of its NFP wealth management operations to Chicago-based private equity firm Madison Dearborn Partners for US$2.7bn.
The transaction encompasses Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms, representing a substantial divestiture for the global professional services giant.
The deal forms part of Aon's broader strategic realignment under what CEO Greg Case describes as the company's 3x3 Plan to accelerate its Aon United strategy.
“This transaction reinforces our ongoing commitment to investing in and growing our core Risk Capital and Human Capital capabilities.
“Through disciplined portfolio management, we are further strengthening our capital position while enabling greater flexibility for high-return growth investments that drive sustained value creation and shareholder returns.” says Greg.
Focus on core capabilities
The sale enables Aon to concentrate resources on its primary Risk Capital and Human Capital operations whilst maintaining its institutional retirement and investment consulting services.
The move represents disciplined portfolio management designed to strengthen Aon's capital position and create 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," Greg notes.
Madison Dearborn's return investment
For Madison Dearborn Partners, the acquisition marks a return to businesses it previously owned, reflecting the firm's established expertise in financial services investments.
“For more than 20 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,” says Vahe Dombalagian, Managing Partner and Co-Head of Financial Services at MDP.
The transaction was led by Dombalagian alongside partner Matt Raino, Co-Head of Financial Services at the private equity firm.
New leadership structure
Following completion, the acquired businesses will operate under unified branding with Michael LaMena, currently CEO of Wealthspire Advisors, appointed as Chief Executive.
Carl Nelson, presently Head of M&A for NFP, will serve as President of the consolidated entity.
Doug Hammond, CEO of NFP, says: “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.
Financial terms and timeline
The US$2.7bn purchase price will deliver approximately US$2.2bn in after-tax cash proceeds to Aon.
The divested businesses generated approximately US$127m in EBITDA over the trailing twelve months ending 30 June 2025.
Completion is anticipated in late fourth quarter 2025, subject to regulatory approvals and standard closing conditions.
Given the expected timing, Aon indicates the transaction will have minimal impact on its full-year 2025 financial results.
The deal underscores continued private equity appetite for wealth management platforms whilst highlighting insurance sector consolidation as companies refine strategic focus areas.
