Madison Dearborn-backed NFP to sell wealth management unit: sources

National Financial Partners Corp (NFP), which is owned by Madison Dearborn Partners, has put its wealth management unit up for sale, three sources said.

Bank of America Merrill Lynch is advising on the sale, one of the sources said. New York-based NFP is an insurance broker and consultant. It provides employee benefits, insurance and wealth management solutions to middle-market companies, high net worth individuals and independent financial advisors. The company produced $1.2 billion in revenue for the year ended Dec ember 31, 2014, Moody’s Investors Service said in a May note.

NFP is seeking $250 million for the wealth management unit, one of the sources said.

The sale comes two years after Madison Dearborn acquired NFP in July 2013 for $1.3 billion. Chicago-based Madison Dearborn is also out fundraising. The private equity firm is targeting $3.75 billion for its seventh fund, Buyouts has reported.

The investment in NFP came from the firm’s sixth fund, according to an SEC filing. Madison Dearborn Capital Partners VI collected $4.1 billion in 2010. Fund VI generated a 23.5 percent net IRR and a 1.72x investment multiple as of December 31, according to data from the University of California Regents.

Executives for Madison Dearborn and NFP declined comment. BofA couldn’t be reached for comment.

Action Item: NFP can be reached at 212-301-4000.

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