Aon Signs Definitive Agreement to Sell Significant Majority of NFP's Wealth Business to Madison Dearborn Partners

Rhea-AI Summary

Aon plc (NYSE: AON) has entered into a definitive agreement to sell a major portion of NFP's wealth business to Madison Dearborn Partners (MDP) for an estimated $2.7 billion. The transaction includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and related platforms.

The deal, expected to close in Q4 2025, will generate after-tax cash proceeds of approximately $2.2 billion for Aon. The divested businesses represent $127 million in EBITDA for the trailing twelve-month period ending June 30, 2025. Post-transaction, the businesses will operate under a unified brand, led by Michael LaMena as CEO and Carl Nelson as President.

This strategic move aligns with Aon's 3x3 Plan and reinforces its focus on core Risk Capital and Human Capital capabilities while maintaining its commitment to institutional retirement and investment consulting services.

Positive

• Transaction value of $2.7 billion strengthens Aon's capital position
• Expected after-tax cash proceeds of $2.2 billion provides flexibility for growth investments
• Strategic alignment with Aon's core Risk Capital and Human Capital focus
• Divested businesses show strong performance with $127 million in EBITDA

Negative

• Reduction in Aon's wealth management business portfolio
• Potential loss of revenue stream from divested wealth businesses

Insights

Corporate Strategy Analyst

Aon's $2.7B divestiture of NFP's wealth business sharpens focus on core operations while strengthening capital position for strategic investments.

Aon's decision to divest a significant portion of NFP's wealth business to Madison Dearborn Partners (MDP) for $2.7 billion represents a strategic portfolio refinement that aligns with the company's "3x3 Plan" to accelerate its Aon United strategy. The transaction involves the sale of Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and related platforms, which collectively generated approximately $127 million in EBITDA for the trailing twelve months ending June 30, 2025.

This divestiture demonstrates disciplined capital allocation as Aon concentrates resources on its core Risk Capital and Human Capital businesses. The move provides Aon with enhanced financial flexibility, generating estimated after-tax cash proceeds of $2.2 billion that can be deployed toward "high-return growth investments" to create shareholder value. The transaction implies a valuation multiple of approximately 21.3x trailing EBITDA ($2.7 billion ÷ $127 million), representing a premium valuation for wealth management assets.

Importantly, Aon is maintaining its core institutional retirement, investment consulting, and delegated management capabilities, indicating a strategic bifurcation between retail/high-net-worth wealth management and institutional services. This suggests Aon believes it can extract greater long-term value from institutional client segments rather than the advisor-led wealth management business being divested.

For Madison Dearborn Partners, this transaction marks a return to businesses they previously had involvement with, potentially allowing them to leverage institutional knowledge to drive future growth. The consolidated business will operate under a unified brand with leadership from existing management, providing continuity during the transition while positioning for both organic growth and future acquisitions in the wealth management space.

With the transaction not expected to materially impact Aon's 2025 financial results, this appears to be a well-timed strategic move that sharpens the company's business focus while strengthening its capital position for future strategic initiatives.

-       The agreement includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms 
-       Transaction reinforces Aon's focus on core Risk Capital and Human Capital capabilities and presence in the middle market
-       Madison Dearborn Partners to support further growth of businesses to meet evolving client needs
-       Purchase price estimated to be $2.7 billion at time of close, which is expected in Q4 2025

DUBLIN and CHICAGO, Sept. 3, 2025 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced that it has signed a definitive agreement to sell a significant majority of NFP's wealth business – Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms – to Madison Dearborn Partners, LLC ("MDP"), a leading private equity investment firm based in Chicago.

"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."

Case added: "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."

"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."

Following the close of the transaction, the MDP-acquired businesses will be consolidated and operate under a unified brand name. The company will be led by Michael LaMena (currently CEO of Wealthspire Advisors) as CEO and Carl Nelson (currently Head of M&A for NFP) as President.

"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."

Under the terms of the transaction, MDP will acquire the businesses for a total consideration estimated to be $2.7 billion at the time of close, resulting in total after-tax cash proceeds of approximately $2.2 billion. The businesses represent approximately $127 million in EBITDA for the trailing twelve-month period ending June 30, 2025. The transaction is expected to close in late Q4 2025, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals. Given the expected timing of the close, the financial impact to Aon's full-year 2025 results is not expected to be material.

Advisors
UBS Investment Bank served as lead financial advisor and Moelis & Company LLC served as financial advisor to Aon on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP and Dentons acted as external legal counsel to Aon. Goldman Sachs & Co LLC acted as the financial advisor to MDP on the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Kirkland & Ellis, LLP provided legal counsel to MDP.

About Aon 
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.

About NFP
NFP, an Aon company, is an organization of consultative advisors and problem solvers helping companies and individuals address their most significant risk, workforce, wealth management and retirement challenges. With colleagues across the U.S., Puerto Rico, Canada, UK and Ireland, we serve a diversity of clients, industries and communities. Our global capabilities, specialized expertise and customized solutions span property and casualty insurance, benefits, wealth management and retirement plan advisory. Together, we put people first, prioritize partnerships and continuously advance a culture we're proud of.

About Madison Dearborn Partners
Madison Dearborn Partners, LLC ("MDP") is a leading private equity investment firm based in Chicago. Since MDP's formation in 1992, the firm has raised aggregate capital of more than $31 billion and has completed over 160 platform investments. MDP invests across four dedicated industry verticals, including financial services, healthcare, basic industries, and technology & government. Drawing on deep industry and operational expertise, MDP works closely with management teams to drive value creation and operational improvement across its portfolio. For more information, please visit www.mdcp.com

Media Contacts 

Aon
mediainquiries@aon.com
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024

Madison Dearborn Partners
Deven Anand
H/Advisors Abernathy
abmacmdcp@h-advisors.global
212.371.5999

Safe Harbor Statement 

This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations. All statements, other than statements of historical facts, that address activities, events or developments that Aon expects or anticipates may occur in the future, including, without limitation, statements about the anticipated benefits of the transaction, estimated purchase price, financial impact to Aon and Aon's 2025 financial results, Aon's capital position, and expected closing date are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "positioned", "should", "will", "would" or similar expressions, it is making forward-looking statements. 

The following factors, among others, could cause actual results to differ materially from those set forth in or anticipated by the forward looking statements: adverse effects on the market price of Aon's securities and on Aon's operating results for any reason, the failure to realize the expected benefits of the transaction, the failure to close the transaction, changes in global, political, economic, business, competitive and market forces, regulatory action, future exchange and interest rates, changes in tax laws, regulations, rates and policies, future business acquisitions or disposals, significant transaction costs or difficulties in connection with the transaction and/or unknown or inestimable liabilities, potential litigation associated with the transaction, the potential impact of the consummation of the transaction on relationships, including with suppliers, customers, employees and regulators, and general economic, business and political conditions (including any epidemic, pandemic or disease outbreak) that affect Aon. 

Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2024 for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.

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SOURCE Aon plc

FAQ

What is the value of Aon's (NYSE:AON) wealth business sale to Madison Dearborn Partners?

The transaction is valued at $2.7 billion, with expected after-tax cash proceeds of $2.2 billion for Aon.

Which businesses are included in Aon's (NYSE:AON) sale to MDP?

The sale includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms.

When will Aon's (NYSE:AON) wealth business sale to MDP close?

The transaction is expected to close in late Q4 2025, subject to customary closing conditions and regulatory approvals.

What is the EBITDA of the businesses Aon (NYSE:AON) is selling to MDP?

The businesses represent $127 million in EBITDA for the trailing twelve-month period ending June 30, 2025.

Who will lead the wealth businesses after Aon's (NYSE:AON) sale to MDP?

The consolidated business will be led by Michael LaMena as CEO (currently CEO of Wealthspire Advisors) and Carl Nelson as President (currently Head of M&A for NFP).