The deal is expected to be worth US$2.7 billion when it closes, likely in Q4 2025
Aon is to sell the majority of its NFP wealth business to a private equity firm based in Chicago.
The global company’s subsidiary has wealth and retirement advisory operations in the US, Canada, Puerto Rico, the UK, and Ireland, including Newport Private Wealth, which was acquired by NFP in 2022, Wealthspire Advisors, Fiducient Advisors, and related platforms.
These business units will be acquired by Madison Dearborn Partners, LLC, as part of Aon’s sharpened focus on its core insurance operations, with current Wealthspire CEO Michael LaMena as CEO and Carl Nelson, currently Head of M&A for NFP), as president of the company which will have a new unified brand name.
"With our 3x3 Plan to accelerate our Aon United strategy, we are more focused than ever on serving our clients' risk and people needs with distinction," said Greg Case, CEO of Aon. "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."
The deal is expected to be valued at around $2.7 billion when the deal closes, which should be in the fourth quarter of 2025 subject to the usual closing conditions including regulatory approval.
For the businesses that will be joining Madison Dearborn, it is a return to the fold. It acquired the formerly listed NFP in 2013 for $1.3 billion, with Aon announcing late in 2023 that it would acquire privately held NFP from its shareholders including Madison Dearborn, its main capital sponsor, and funds affiliated with HPS Investment Partners.
"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," said Vahe Dombalagian, managing partner and co-head of Financial Services at MDP, who led the transaction alongside Matt Raino, partner and co-head of Financial Services at MDP. "Aon and NFP have been great partners and we're pleased to deepen our relationship through this transaction."
The divestment of a significant part of the NFP wealth business is not the end of Aon’s involvement in wealth advisory.
"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," stated Case.
