Madison Dearborn Partners is making a notable return to the wealth management space with a $2.7 billion deal to reacquire three firms it previously sold.
The Chicago-based private equity firm, which sold NFP to Aon in 2024, is buying back Wealthspire Advisors, Fiducient Advisors, and Newport Private Wealth—businesses that had been part of NFP’s wealth advisory platform.
The move signals Madison Dearborn’s renewed focus on the wealth management sector, even after last year’s headline transaction with Aon. According to the firm, the three businesses collectively generated approximately $127 million in EBITDA over the 12 months ending June 30, underscoring their strong profitability and growth potential.
Once the deal closes, expected in late 2025, the three firms will be consolidated under a single brand. The new entity will be led by Michael LaMena, currently CEO of Wealthspire, alongside Carl Nelson, who heads mergers and acquisitions at NFP. This leadership structure suggests Madison Dearborn intends to integrate the firms closely while maintaining continuity of executive talent.
From Aon’s perspective, the divestiture aligns with its focus on core consulting and risk services. CEO Greg Case described the sale as a step in “disciplined portfolio management,” enabling the company to redirect capital toward higher-return areas within its global risk and HR consulting businesses. For Aon, the transaction strengthens balance sheet flexibility, while for Madison Dearborn, it restores control of a wealth management platform with meaningful scale.
The firms themselves represent significant advisory businesses in their own right. Wealthspire reports $25.8 billion in client assets, according to its most recent Form ADV. Fiducient Advisors, focused on institutional retirement plan consulting, oversees $67.6 billion. While Madison Dearborn has not disclosed total current assets under management for the combined businesses, the figures suggest a platform with more than $90 billion in client assets before factoring in Newport Private Wealth.
For advisors, the acquisition highlights how private equity continues to shape the wealth management industry. Fidelity’s 2024 report shows that private-equity-backed deals now represent nearly four out of every five M&A transactions in the sector. Scale, succession planning, and access to growth capital remain key drivers behind this consolidation wave. Madison Dearborn’s willingness to buy back businesses it had recently sold illustrates the perceived long-term value in well-positioned advisory platforms.
As consolidation accelerates, wealth managers can expect heightened competition for talent and clients, as larger firms with private-equity backing seek to expand their footprints. At the same time, deals like this underscore the premium placed on firms with diversified revenue, strong earnings, and institutional capabilities. Advisors operating independently or within smaller firms may find opportunities to partner or affiliate with scaled platforms that bring resources for technology, compliance, and investment solutions.
Looking ahead, Madison Dearborn’s move may serve as a bellwether for other private equity firms reevaluating their portfolio strategies in wealth management. With deal volume running at record levels and valuations commanding significant premiums, private equity’s role in reshaping the advisory landscape shows no signs of slowing.
For RIAs and advisors navigating this environment, the key takeaway is clear: private equity views wealth management as an enduring growth engine, and the pace of consolidation will continue to influence competitive dynamics, client service models, and long-term succession planning.
