Aon Sells NFP’s Wealth Division to Madison Dearborn Partners for $2.7B 

Aon, an insurance broker and benefits consulting firm, has sold a large majority of NFP’s wealth division to investment firm Madison Dearborn Partners for $2.7 billion. 

The transaction, is expected to close in the fourth quarter of this year, subject to legal and regulatory approvals. The deal will create an after-tax cash flow worth $2.2 billion, Aon said. 

As part of the deal, NFP will regain control of firms, including Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and other wealth management firms and will be consolidated under Madison Dearborn Partners’ brand. 

Aon acquired NFP from Madison Dearborn Partners last April in a transaction valued at $13.4 billion in cash and stock. The acquisition was funded with $7 billion in cash and $6.4 billion in Aon’s stock. 

Madison Dearborn Partners first acquired NFP in 2013 for $1.3 billion and NFP stockholders received $25.35 in cash for each share of NFP’s stock. 

Following the deal, Wealthspire’s CEO Mike LaMena will lead the combined division and NFP’s head of M&A Carl Nelson will assume the role as president, the firm said. 

“This transaction reinforces our ongoing commitment to investing in and growing our core Risk Capital and Human Capital capabilities,” Case said. “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 will allow Aon to focus on its “core” risk and human capital capabilities and developing its presence in the middle market. Additionally, Aon disclosed that the firm plans to streamline various technologies, operations and client services across its businesses over the next three years. 

NFP, founded in 1999, is a global middle-market insurance provider, and also provides retirement, benefits, and wealth management services.