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Madison Dearborn Partners
Madison Dearborn Partners
from Wikipedia

Madison Dearborn Partners (MDP) is an American private equity firm which invests in industries, business and government software and services, financial & transaction services, health care sectors.[2] It was established as an independent firm in 1992.[3]

Key Information

History

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Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders, John A Canning Jr, Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos, had previously made private equity investments for First Chicago Bank.[3]

Investments

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Between 2006 and 2007, Madison Dearborn completed leveraged buyout transactions for a number of publicly traded companies, including Asurion,[4] CDW,[5] LA Fitness,[6] Nuveen investments,[7] Sorenson Communications,[8] Univision Communications,[9] VWR International[10] and Yankee Candle.[11]

In 2007, the firm joined with Michael Eisner's Tornante investment company to buy out baseball card maker The Topps Company.[12]

In 2010, the firm acquired a majority stake in Transunion from the Pritzker family.

In 2014, a plan for MDP to sell Nuveen to TIAA-CREF for $6.25 billion was announced.[13] While the Wall Street Journal cited an anonymous source close to the transaction to the effect that MDP "will have broken even on the transaction", Felix Salmon queried that assertion at Reuters.[14] Dan Primack at Fortune then published additional information about auxiliary benefits to MDP to buttress the break-even claim.[15]

Bell Canada

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In June 2007, Madison Dearborn, Providence Equity Partners and the Ontario Teachers' Pension Plan agreed to acquire Bell Canada Enterprises (BCE) in what would have been one of the largest leveraged buyouts in history. The transaction was valued at C$51.7billion (US$48.5 billion) and was approved on September 21, 2007, by more than 97% shareholder votes cast by holders of common and preferred shares.[16][17]

Bondholders argued in the Superior Court of Quebec that the deal did not protect their interests.[18] While the court rejected the bondholder's arguments, the Quebec Court of Appeal sided with those opposed to the deal. In 2008, the Supreme Court of Canada overruled the Court of Appeal, allowing the deal to move forward.[19]

In December 2008, the deal collapsed after auditing firm KPMG determined that the transaction would create an insolvent entity.[20]

Selected portfolio

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Madison Dearborn Partners (MDP) is a leading Chicago-based investment firm founded in 1992, specializing in and growth equity investments in middle- and upper-middle-market companies throughout the . The firm focuses on partnering with strong teams to drive value creation in high-quality businesses with attractive growth prospects, leveraging deep industry expertise across four dedicated verticals: Basic Industries, Financial & Transaction Services, Healthcare, and Technology & Government. MDP traces its roots to the early , when its founders developed a $2.6 billion and portfolio at First Chicago Venture Capital, establishing a foundation in the Midwest business community. Since its inception, the firm has raised approximately $31 billion in aggregate capital across its funds and completed investments in more than 160 companies, demonstrating a long track record of successful partnerships and operational improvements. As of 2025, MDP is deploying capital from its eighth fund, Madison Dearborn Capital Partners VIII, which closed with $5.0 billion in commitments. The firm's investment professionals bring nearly 40 years of collective experience, emphasizing sector-specific knowledge, , and access to extensive networks to support portfolio company growth. MDP integrates environmental, social, and governance (ESG) considerations into its process to enhance long-term value, while also committing to responsible investing and community through various initiatives.

Company Overview

Founding and Leadership

Madison Dearborn Partners was established in 1992 as an independent private equity firm spun out from the private equity group of First Chicago. The firm was co-founded by John A. Canning Jr., Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos, who leveraged their prior experience in investment management to launch the venture. Before the spin-out, the founders had developed a substantial track record at First Chicago Venture Capital starting in the early 1980s, where they assembled a $2.6 billion portfolio focused on management buyouts and venture capital investments. This foundation provided the expertise and relationships that enabled the successful formation of Madison Dearborn Partners. As of 2025, the firm's leadership includes Managing Partner Vahe A. Dombalagian, who was promoted to the role in 2024 and oversees firm-wide strategy while co-heading the financial services team; his background encompasses prior roles at Pacific Group and . Former co-CEOs Timothy P. Sullivan and Thomas S. Souleles now serve as vice chairs, having led the firm since 2023 after succeeding founding partners Finnegan and Mencoff. Founding partner Samuel M. Mencoff acts as a senior advisor, drawing on his 11 years at First Chicago and subsequent co-CEO tenure at Madison Dearborn, alongside external roles such as at . John A. Canning Jr., another founding partner, holds the position of , with a career spanning 24 years at First Chicago, including as president of its arm. The firm is headquartered in , , and employs over 100 professionals.

Organizational Structure and Assets

Madison Dearborn Partners operates as a privately held , with its headquarters located in , , where the majority of its operations are based. The firm maintains a focused centered on investment professionals organized into dedicated teams, supported by operations and administrative staff to facilitate deal execution and portfolio management. Since its inception in , Madison Dearborn Partners has raised aggregate capital of more than $31 billion across its various funds. As of the latest available reports in 2024 and 2025, the firm's are estimated at approximately $16-19 billion, reflecting some discrepancies across regulatory filings (such as 13F disclosures) and industry assessments for committed capital. The organization employs over 100 professionals, comprising investment teams responsible for sourcing and managing deals, operations personnel handling , and support staff focused on compliance and . In recent years, Madison Dearborn Partners has committed to responsible investment practices, embedding environmental, social, and governance (ESG) considerations into its , investment monitoring, and value creation efforts to promote sustainable outcomes across its portfolio. This integration, formalized through annual reporting and alignment with frameworks like the UN , underscores the firm's approach to long-term and ethical operations.

Investment Strategy

Sectors of Focus

Madison Dearborn Partners maintains a disciplined, industry-focused centered on four core sectors: Basic Industries, Financial & Transaction Services, Healthcare, and Technology & Government. In Basic Industries, the firm targets opportunities in areas such as building products and construction materials, chemicals, industrial materials and natural resources, and and distribution. The Financial & Transaction Services sector emphasizes insurance distribution and brokerage, including payment processing, consulting, and wealth and retirement management. Healthcare investments span behavioral health, healthcare services like acute and post-acute providers, medical devices and equipment, and outsourced services to pharmaceutical companies. The Technology & Government sector includes software and tech-enabled services such as SaaS, cybersecurity, and insurance technology, alongside government-focused areas like defense electronics, cybersecurity, and enterprise IT modernization. The evolution of Madison Dearborn Partners' sector focus traces back to the early 1980s, when its founders developed an industry-specific approach while building a $2.6 billion and portfolio at First Chicago . Upon establishing the firm as an independent entity in , this expertise-informed strategy continued, refining over time into the current four dedicated verticals through decades of specialization across economic cycles. This progression leveraged the team's deep-rooted knowledge from First Chicago, transitioning from broader origins to a concentrated emphasis on sectors where operational insights could drive value in middle- and upper-middle-market companies. The rationale for this sector-specific focus stems from nearly 40 years of cumulative experience investing in established companies within these industries, enabling the firm to conduct targeted , cultivate differentiated relationships, and implement clear value-creation plans in collaboration with management teams. By concentrating on areas of proven expertise, Madison Dearborn Partners aims to capitalize on market-leading opportunities while mitigating risks through specialized industry understanding.

Approach and Criteria

Madison Dearborn Partners (MDP) employs a flexible centered on partnering with strong teams to grow established , prioritizing the quality of the underlying , its growth prospects, and over the specifics of deal structure. The firm focuses on opportunities across its four core sectors—basic industries, financial and transaction services, healthcare, and & —while maintaining a disciplined approach to selecting investments that align with long-term value creation. MDP primarily pursues control-oriented buyouts, including leveraged buyouts, management buyouts, and management buy-ins, as well as growth equity investments, recapitalizations, divestitures, going-private transactions, and secondary buyouts. These investments target middle- and upper-middle-market companies based primarily in the United States, with typical equity commitments ranging from $100 million to $600 million for buyouts and $100 million to $400 million for growth capital. The firm emphasizes control and minority positions to support operational enhancements and strategic initiatives. Value creation at MDP is driven by operational improvements, strategic add-ons, and close collaboration with portfolio company management teams, leveraging the firm's deep sector expertise and dedicated industry professionals. The due diligence process is targeted and efficient, drawing on long-standing industry relationships and operational knowledge to assess opportunities thoroughly and develop clear value creation plans. This approach supports extended partnerships, enabling sustained growth and strategic execution over the investment lifecycle.

Historical Development

Origins and Early Years

In the early 1980s, the founders of Madison Dearborn Partners, including John A. Canning Jr., Paul J. Finnegan, and Samuel M. Mencoff, established a practice at First Chicago, where they managed a $2.6 billion portfolio focused on management buyouts and investments. This experience laid the groundwork for their subsequent independent venture, drawing on established relationships and expertise in middle-market transactions. In 1992, , Finnegan, Mencoff, and several associates spun out from First Chicago to form Madison Dearborn Partners as an independent firm headquartered in , named after the nearby intersection of Madison and Dearborn streets. The new entity quickly raised its inaugural fund, Madison Dearborn Capital Partners I. This enabled the firm to pursue leveraged buyouts and growth equity opportunities on its own terms. Throughout the 1990s, Madison Dearborn Partners concentrated its initial investments in sectors such as and basic industries, completing numerous transactions that capitalized on industry consolidation and operational improvements. Notable early deals included a significant stake in Partners, a provider that went public in 2000. By the turn of the millennium, the firm had also committed $100 million to X.com, an online company that later merged with to become . These formative years coincided with the dot-com bubble's expansion and subsequent burst, followed by the , periods that tested the resilience of emerging firms like Madison Dearborn amid volatile market conditions and shifting investor sentiment.

Key Milestones and Growth

In the early 2000s, Madison Dearborn Partners experienced significant growth during a period of robust activity, notably raising its fourth fund, Madison Dearborn Capital Partners IV, at $4 billion in 2001, which exceeded its initial target and supported expanded opportunities. This fundraising success positioned the firm to capitalize on the mid-decade buyout boom, where it participated in high-profile transactions such as the acquisitions of in 2007 and Communications in 2007 as part of investor consortia, reflecting peak momentum from 2006 to 2007. The 2008 global financial crisis profoundly affected the firm, disrupting its portfolio and leading to the collapse of its involvement in the proposed $50 billion leveraged buyout of BCE Inc. (Bell Canada Enterprises), a deal that unraveled in December 2008 amid tightened credit markets and financing failures by consortium partners including Providence Equity Partners. This event, one of the largest failed buyouts of the era, highlighted the broader challenges faced by private equity firms, including valuation pressures and liquidity constraints on existing holdings. During the 2010s recovery, Madison Dearborn rebounded by acquiring a 51% stake in Corp. in June 2010 for an enterprise value exceeding $2 billion, marking a strategic entry into the sector and leveraging post-crisis market stabilization. The firm further demonstrated resilience through the 2014 sale of Investments to TIAA-CREF for $6.25 billion, an exit that recovered its initial 2007 investment amid improving valuations. By the end of the decade, these activities contributed to the firm's expansion, culminating in over 100 completed investments across its targeted sectors. Entering the 2020s, Madison Dearborn navigated the by focusing on resilient industries such as healthcare, where it made supportive investments like a $150 million infusion into portfolio company EVO Payments in March 2020 to bolster operations amid economic disruptions. The firm raised $5 billion for Madison Dearborn Capital Partners VIII in 2021, and as of 2025, is targeting $3 billion for Madison Dearborn Capital Partners IX. By 2025, the total number of investments exceeded 160, underscoring sustained expansion. Overall, Madison Dearborn's growth trajectory is evident in its cumulative capital raised, which evolved from approximately $3.5 billion around 2000—prior to the scale-up via Fund IV—to $36 billion across all funds by 2025, with of approximately $23 billion as of 2025.

Investment Funds

Fund Evolution

Madison Dearborn Partners initiated its independent fund-raising efforts with the launch of Madison Dearborn Capital Partners I in 1993, raising $300 million primarily for buyouts in the and industrials sectors. This debut fund marked the firm's transition from its origins at First Chicago Venture Capital, where the founders had managed a mixed portfolio including venture elements, to a more focused approach emphasizing control-oriented investments. Building on initial success, the firm raised $1.2 billion for Fund II in 1998, broadening its scope to include healthcare and alongside traditional buyouts. This expansion reflected growing investor confidence and the firm's maturing track record, allowing MDP to diversify beyond its core industrials focus while maintaining a disciplined thesis centered on partnering with strong teams. By Fund III in 2001, which closed at $2.2 billion during a broader market downturn, MDP demonstrated resilience, prioritizing opportunities in basic industries and services amid economic uncertainty. The mid-2000s boom enabled further scaling, with Fund IV closing at $4 billion in 2001, underscoring MDP's ability to capitalize on favorable financing conditions for larger transactions across its targeted sectors. Fund V raised $6.5 billion in 2006, reflecting continued growth before the global . Fund VI closed in 2010 with $4.1 billion amid post-crisis recovery, emphasizing operational improvements in a challenging environment. Over this period, fund sizes progressively increased—from $300 million to $6.5 billion—mirroring broader market cycles of expansion and contraction, while MDP shifted decisively from any residual venture components to a pure strategy focused on middle-market control investments. In total, these early funds contributed to MDP's aggregate capital raised of approximately $36 billion across its history.

Recent Funds and Performance

Madison Dearborn Capital Partners VII closed in 2016 with $4.4 billion in commitments, attracting strong backing from institutional limited partners including public pension funds. The fund focused on opportunities in middle-market companies across the firm's core sectors of basic industries, financial and transaction services, , and telecom, media, and technology services. In 2021, Madison Dearborn closed its eighth flagship fund, Madison Dearborn Capital Partners VIII, at a $5 billion hard cap, marking the largest fund in the firm's history at the time. Launched in 2019 with a $4.5 billion target, the oversubscribed fund emphasized responsible investment practices, including enhanced environmental, social, and governance (ESG) integration in portfolio management. As of late 2025, the firm continues to deploy capital from this fund into platform investments. As of July 2025, Madison Dearborn has launched Madison Dearborn Capital Partners IX, targeting $3 billion in commitments—the smallest flagship fundraise since the firm's early years in the late . remains in process, with a potential final close anticipated by December 2026. The fund continues the firm's strategy of partnering with management teams for control-oriented investments. Across its funds, Madison Dearborn has raised approximately $36 billion in aggregate capital since inception. Performance has been robust, with the firm outperforming the industry benchmark in 13 of the past 15 years and delivering approximately $2 in distributions for every $1 invested, based on disclosed metrics. Where reported, net internal rates of return (IRRs) for mature vintages have averaged in the mid-teens to low-20s percent, exemplified by Fund VI's 23.5% net IRR as of 2021. The firm has completed over 160 investments and more than 190 exits, generating significant realizations through strategic sales and recapitalizations.

Notable Investments

Major Successful Deals

Madison Dearborn Partners executed a majority stake acquisition in in 2010, purchasing 51 percent of the credit reporting company for an undisclosed amount as part of a transaction with the . In 2012, the firm sold its stake to and , achieving a 2.25 times multiple on its investment. This exit preceded TransUnion's in 2015, which valued the company at approximately $4 billion and demonstrated the underlying growth in the consumer credit information sector that Madison Dearborn had supported through operational enhancements. In the financial services sector, Madison Dearborn acquired Investments in 2007 for $5.75 billion in a led by the firm alongside other investors. The investment focused on expanding Nuveen's capabilities, including mutual funds and institutional portfolios. In 2014, Madison Dearborn sold Nuveen to TIAA-CREF for an enterprise value of $6.25 billion, realizing a modest appreciation in overall valuation despite market challenges during the holding period. A standout transaction in the insurance brokerage space was Madison Dearborn's 2013 acquisition of NFP Corp. for approximately $1.3 billion, targeting middle-market risk management and employee benefits services. Under the firm's ownership, NFP pursued aggressive organic growth and over 200 add-on acquisitions, scaling its revenue significantly. In 2023, Madison Dearborn divested NFP to Aon plc for $13.4 billion in cash and stock, delivering substantial returns reflective of the company's expanded market position. In September 2025, Madison Dearborn re-acquired a majority stake in NFP's wealth business from Aon for approximately $2.7 billion. In healthcare distribution, Madison Dearborn completed a buyout of in 2007, acquiring the laboratory supplies provider from for around $3.8 billion. The firm facilitated VWR's international expansion and optimizations. Madison Dearborn partially exited via an in 2014 and fully divested in 2017 through a sale to , generating a 2.3 times return on its investment. Madison Dearborn also participated in the 2007 of Communications, contributing to a $13.7 billion consortium-led transaction in the telecom and media sector. The investment involved multiple partial exits over time, including stake sales amid operational restructurings, though the overall holding faced challenges from industry shifts. Other notable successes include the 2007 buyout of The Topps Company alongside Michael Eisner's Tornante for $385 million, focusing on consumer products like trading cards, with Madison Dearborn exiting its position profitably in subsequent years. For , Madison Dearborn joined a 2006 consortium valuing the device provider at $1.1 billion initially, later expanded, and realized gains through partial sales while retaining a long-term stake. These deals, among others, have contributed to Madison Dearborn's track record of generating significant value through strategic s and operational improvements across its focused sectors.

Significant Exits and Failed Transactions

One notable exit for Madison Dearborn Partners involved Company, which the firm acquired in a $1.4 billion in February 2007. In September 2013, Madison Dearborn sold the candle retailer to Corporation for $1.75 billion, realizing approximately a doubling of its invested capital despite challenges including a terminated prior sale attempt and refinancing difficulties. Madison Dearborn also exited its in Sorenson Communications, a provider of video relay services for the deaf and hard-of-hearing community, following a completed in December 2006 in partnership with . The faced significant headwinds, culminating in Sorenson's Chapter 11 filing in March 2014 to reorganize $1.4 billion in liabilities amid regulatory price cuts and service mandates imposed by the . Madison Dearborn exited the in through a sale to Ariel Alternatives for approximately $1.3 billion, reflecting a challenging outcome for the telecom services holding. In the customer experience management space, Madison Dearborn acquired a majority stake in InMoment in May 2019 from existing shareholders including Peterson Partners, aiming to fuel platform expansion and market growth. The firm subsequently supported InMoment's acquisition of MaritzCX in early 2020 to enhance its experience management capabilities. Madison Dearborn exited the investment in 2022, as indicated in its portfolio records, providing a relatively quick turnaround for the growth equity deal amid evolving digital analytics demands. A prominent failed transaction was Madison Dearborn's involvement in the proposed $51.7 billion of , Canada's largest telecom, announced in June 2007 alongside lead partners (52% stake) and Providence Equity Partners (32% stake), with Madison Dearborn committed to a 9% equity portion. The deal, initially cleared by Canada's in 2008, collapsed in December 2008 when financing partners including , , and declined to fund it due to the global credit crisis and BCE's failure of a test under . The aborted transaction incurred substantial costs, with estimates exceeding $100 million in advisory and commitment fees across the , marking one of the largest LBO casualties of the . The also impacted several Madison Dearborn holdings, delaying planned exits and straining operations. For , acquired in a $7.3 billion in 2007, severely affected the IT reseller's corporate sales, leading to postponed IPO plans and an extended hold period of six years until the company's relisting in 2013. Similarly, the firm's 2007 growth equity investment in , securing a 20% stake for $600 million, encountered broader industry pressures from reduced consumer spending on discretionary services, though specific financial impacts on the holding remain less documented amid the economic downturn. During the 2014-2016 oil price downturn, which saw crude prices plummet over 70% from mid-2014 peaks, Madison Dearborn recorded partial write-downs on certain energy sector investments as market volatility eroded asset values across the private equity landscape. Although specific portfolio details are limited, the firm's exposure in basic industries—including power generation and renewables like First Wind Holdings—contributed to underperformance in domestic energy holdings during this period, aligning with broader industry trends of asset impairments. These experiences underscored the risks of concentrated leverage and cyclical sectors, prompting Madison Dearborn to reinforce its post-2008 strategy of sector diversification across basic industries, financial and transaction services, , and telecom, media, and technology services to mitigate future vulnerabilities. This approach, evident in subsequent funds, emphasized resilient, non-cyclical subsectors to balance exposure following the crisis-era disruptions.

Current Portfolio

Active Holdings

As of 2025, Madison Dearborn Partners manages a portfolio of approximately 28 active companies, spanning financial services, healthcare, technology and government, basic industries, and telecommunications, media, and technology services, with a focus on operational enhancements and sector-specific growth initiatives to drive long-term value. In the financial services sector, key holdings include Amynta Group, a provider of specialty insurance products, commercial insurance brokerage, and extended warranty services, which MDP has supported through strategic acquisitions and expansion into new markets since its buyout investment. Another significant asset is Wealthspire Advisors, acquired by MDP in October 2025 for approximately $2.7 billion from Aon as part of the firm's wealth business divestiture, closing on October 30, 2025; this platform delivers comprehensive wealth management, financial planning, and retirement advisory services to high-net-worth individuals and institutions, overseeing more than $580 billion in client assets under management or advisement upon integration with related entities. The technology and services portfolio features Corporation, a leading provider of device insurance, protection plans, and connected living solutions for consumers and enterprises, where MDP continues to invest in and global expansion to enhance customer connectivity and repair services. In basic industries, Air Control Concepts stands out as a growth equity investment from April 2023, offering HVAC , custom-engineered solutions, and environmental control systems for commercial and industrial applications, with ongoing support for acquisitions and product development following a 2024 co-investment partnership. Healthcare represents a core focus, with holdings such as , which develops and practice management software for providers, enabling MDP to capitalize on trends in medical practices. Similarly, Sevita Health delivers home- and community-based services for individuals with intellectual and developmental disabilities, emphasizing scalable care models and . These investments underscore MDP's strategy of partnering with management teams to foster sustainable growth and market leadership across diverse sectors.

Recent Activities

During the period from 2020 to 2022, Madison Dearborn Partners intensified its investments in the healthcare sector amid the , focusing on provider services and related infrastructure to support resilience and growth in . Notable examples include the August 2020 buyout of Blue Lantern Health, a healthcare services provider, and a $150 million investment in EVO Payments in March 2020 to bolster its healthcare payment processing capabilities during heightened demand. In June 2021, the firm closed its eighth flagship fund, Madison Dearborn Capital Partners VIII, at a $5 billion hard cap, which facilitated these and subsequent deployments in healthcare and other sectors. In 2023, Madison Dearborn achieved one of its largest exits with the December announcement of the sale of NFP Corp., a leading brokerage, to Aon plc for $13.4 billion, a transaction that closed in April 2024 and marked a significant return on the firm's long-term holding. This deal underscored the firm's strategy in financial and services, contributing to its cumulative track record of over 160 investments. The firm continued its active deal flow in 2024, In July 2024, Blackstone joined MDP as a co-investor in Air Control Concepts, a provider of HVAC solutions, enhancing its portfolio in industrials with a focus on . In the telecom, media, and space, Madison Dearborn made a growth equity investment in Omni Federal in June 2024, supporting expansions in government-focused communications services. These moves reflected an ongoing emphasis on add-on acquisitions to scale portfolio companies. By 2025, Madison Dearborn acquired a significant majority of Aon’s wealth business—including Wealthspire Advisors, Fiducient Advisors, and Newport Private Wealth—for approximately $2.7 billion, closing on October 30, 2025. In November 2025, Wealthspire acquired RoundAngle Advisors, adding approximately $176 million in assets under management as its first deal post-acquisition. Concurrently, the firm launched fundraising for Madison Dearborn Capital Partners IX, targeting $3 billion, its smallest flagship target since 1999, amid a selective approach to opportunities in core sectors. Overall, recent activities have highlighted an increased focus on ESG-driven deals, as evidenced by the firm's 2024 Responsible Investment Report, which details carbon accounting initiatives across Fund VIII portfolio companies.

References

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