Aon Sells Majority of NFP’s Wealth Business Back to Madison Dearborn Partners for $2.7 Billion
In a strategic pivot less than 18 months after its blockbuster acquisition, global insurance giant Aon plc has agreed to divest a significant portion of NFP’s wealth management operations back to private equity firm Madison Dearborn Partners (MDP). The $2.7 billion deal, announced today, underscores Aon’s focus on core competencies while injecting fresh capital for high-growth investments.
The Deal: Terms and Key Assets Involved
Aon signed a definitive agreement to sell the bulk of NFP’s wealth business, including Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and associated platforms, to MDP for an estimated $2.7 billion at closing. This transaction will yield Aon approximately $2.2 billion in after-tax cash proceeds. The divested units generated about $127 million in EBITDA over the trailing 12 months ending June 30, 2025.
The sale is slated to close in late Q4 2025, pending regulatory approvals and standard conditions. Due to the timing, it won’t materially affect Aon’s full-year 2025 financials. Post-closing, the businesses will consolidate under a single brand, led by CEO Michael LaMena and President Carl Nelson, enabling organic growth and acquisitions under MDP’s backing.
This move comes as Aon refines its portfolio following the integration of NFP, which it acquired for $13 billion in April 2024 from MDP and HPS Investment Partners. NFP, a middle-market leader in property and casualty brokerage, benefits consulting, wealth management, and retirement advisory, now operates as an “independent and connected” platform within Aon.
Background: From Acquisition to Divestiture
MDP, a Chicago-based private equity powerhouse with over $31 billion raised since 1992, originally backed NFP’s growth since its 1999 founding. The firm has specialized in financial services, completing more than 160 investments. Aon’s $13 billion purchase of NFP in late 2023 aimed to bolster its middle-market presence, adding over 7,700 employees and capabilities in risk, benefits, and wealth services.
However, under Aon’s “3×3 Plan” to accelerate its Aon United strategy, the company is shedding non-core assets to prioritize Risk Capital (insurance brokerage) and Human Capital (benefits and talent consulting). Reports from early September 2025 indicated Aon was in advanced talks to return the wealth units to MDP for nearly $3 billion, aligning with efforts to retain only its institutional retirement and investment consulting arms. This divestiture represents disciplined portfolio management, freeing up capital for shareholder returns and strategic investments.
Strategic Rationale and Leadership Perspectives
Aon CEO Greg Case emphasized the deal’s alignment with long-term goals: “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.” Case added that Aon remains dedicated to its legacy wealth business for large institutions.
MDP’s Vahe Dombalagian, Managing Partner and Co-Head of Financial Services, expressed enthusiasm: “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.” The transaction was led by Dombalagian and Matt Raino, with Goldman Sachs advising MDP.
NFP CEO Doug Hammond highlighted continuity: “With MDP’s support, these companies will continue to thrive… We look forward to continuing to accelerate growth in our middle market-focused businesses.” UBS served as Aon’s financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP and Dentons providing legal counsel; MDP was advised by Goldman Sachs, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Kirkland & Ellis.
Expert Opinions and Market Reactions
Industry analysts praise the move as savvy capital allocation. “Aon’s quick divestiture of non-core wealth assets post-NFP acquisition demonstrates agile integration and focus on high-margin areas like risk management,” said an insurance consultancy executive. The deal values the wealth business at roughly 21x EBITDA, reflecting strong performance since the NFP buyout.
On social media and financial forums, reactions are positive, with investors noting the $2.2 billion cash influx bolsters Aon’s balance sheet amid volatile markets. Shares of Aon (NYSE: AON) rose modestly in early trading following the announcement, signaling confidence in the strategy. Private equity circles buzz about MDP’s return to these assets, citing its track record in scaling financial services firms.
Critics, however, question the rapid flip, but experts counter that it avoids integration risks in a segment outside Aon’s primary expertise.
Implications for U.S. Readers: Economy, Finance, and Business Landscape
For American investors and professionals, this transaction ripples through the $100 billion-plus U.S. insurance brokerage sector. Aon’s refocus could stabilize premiums and enhance services for middle-market firms, which employ millions and drive economic growth. The $2.2 billion proceeds may fund U.S.-centric innovations in AI-driven risk analytics or cyber insurance, benefiting businesses facing rising threats.
Economically, it signals consolidation in wealth management, where high-net-worth individuals (over 7 million in the U.S.) seek tailored advice amid market volatility. Politically, as regulatory scrutiny on private equity grows—especially post-2024 elections—this deal highlights compliant, value-creating M&A. Technologically, MDP’s backing could accelerate digital tools in wealth platforms, impacting fintech adoption nationwide.
On the lifestyle front, U.S. families and retirees may see more competitive wealth services from the unified MDP entity, potentially lowering fees through scale. In sports and entertainment, Aon’s strengthened position could mean more sponsorships or risk solutions for major leagues, indirectly supporting American pastimes.
Conclusion: A Strategic Full Circle for Growth and Focus
Aon’s sale of most of NFP’s wealth business back to MDP closes a chapter opened by the 2023 acquisition, generating substantial cash while sharpening its edge in risk and human capital solutions. With the deal set for Q4 2025 closure, both firms position for accelerated expansion in their strengths.
Looking forward, expect Aon to deploy proceeds into core growth areas, enhancing shareholder value, while MDP nurtures the wealth units toward new heights. This transaction exemplifies dynamic dealmaking in a evolving financial services landscape, promising stability and innovation for U.S. stakeholders.