Office address: 70 West Madison Street, Suite 4600, Chicago, IL 60602
Website: www.mdcp.com
Year established: 1992
Company type: private equity firm
Employees: 100+
Expertise: consumer products, business services, communications, energy, insurance, software, industrials, education, data analytics, leveraged buyouts, financial services, basic industries, technology, healthcare
Parent company: N/A
Key people: Paul Finnegan (chair), Thomas Souleles (vice chair), Timothy Sullivan (vice chair), Vahe Dombalagian (managing partner), Vanessa Ward (CHRO), Karla Bullard (CFO), Annie Terry (CCO)
Financing status: N/A
Madison Dearborn Partners is a Chicago-based private equity firm that has raised over $31 billion in capital and invested in over 160 companies. With nearly 40 years of experience, Madison Dearborn Partners focuses on control buyouts and growth equity investments in middle and upper-middle market companies across four key sectors. The firm has more than 100 employees, working closely with management teams to drive success for its partners and investors, primarily in the US.
Madison Dearborn Partners was founded in 1992 by Paul Finnegan, Samuel Mencoff, Nicholas Alexos, and John A. Canning Jr. as an independent private equity firm. Its roots trace back to the early 1980s, when the founders managed a $2.6 billion portfolio at First Chicago Venture Capital. In 2000, the firm made a notable $100 million investment in X.com, now known as PayPal, helping to boost its growth.
The company continued expanding with investments such as the 2007 growth equity deal with LA Fitness and the acquisition of Yankee Candle for $1.6 billion. Currently, they are investing from their eighth fund, Madison Dearborn Capital Partners VIII, with $5 billion in commitments. The firm's global investor base includes foundations, endowments, pension funds, sovereign wealth funds, and family offices.
Madison Dearborn Partners offers a range of services, focusing on different sectors and investment approaches. Below are the key offerings:
Madison Dearborn Partners (MDP) has maintained its industry-focused investment strategy for almost 40 years, spanning four key sectors: financial services, basic industries, technology, and healthcare. With strong roots in the Chicago and Midwest communities, MDP has built a solid reputation and valuable relationships that enhance its investment approach.
Madison Dearborn Partners is known for its highly professional and formal work environment, where staff members are detail-oriented and impeccably prepared. The firm values efficiency and precision, with lean teams often consisting of only senior partners and key associates. Employees are supported with excellent resources, competitive compensation, and a collaborative environment that fosters success through:
Madison Dearborn Partners considers environmental, social, and governance (ESG) factors into every stage of its investment process to create sustainable value. The firm collaborates with portfolio management teams to enhance performance, focusing on areas like energy efficiency, workforce health, cybersecurity, and business ethics. By embedding ESG into its strategy, MDP aims to make responsible investment decisions that support long-term growth across its portfolio companies:
MDP prioritizes diversity, equity, and inclusion (DEI) in their workplace. Their approach, guided by third-party advisors and key industry frameworks, promotes equity and diverse perspectives within both the firm and its portfolio companies. The organization formalized its Equity & Inclusion Policy in 2023, reinforcing its commitment to DEI through governance, education, and action:
Madison Dearborn Partners remains deeply engaged in community service and philanthropy, actively supporting initiatives like the Chicago Scholars program. In 2023, MDP employees contributed over $35 million to various civic and charitable causes. The firm encourages employee involvement in both local and national philanthropic efforts through donations and corporate matching programs.
Paul Finnegan serves as the co-founder and chairman of Madison Dearborn Partners and sits on the boards of AIA Corporation and the Chicago Council on Global Affairs. His previous roles include working at First Chicago Venture Capital and serving as chairman of Teach for America in Chicago. Finnegan holds an AB from Harvard College and an MBA from Harvard Business School.
Madison Dearborn Partners is led by a team of experienced executives who play critical roles in driving the firm’s success, some of whom include:
The company has appointed Vahe Dombalagian as its new managing partner, succeeding longtime co-CEOs Tom Souleles and Tim Sullivan, who now serve as vice chairs. Dombalagian will lead alongside eight newly promoted partners, with a focus on key sectors such as healthcare, financial services, and technology. This leadership transition positions Madison Dearborn Partners for long-term success by optimizing management, strengthening expertise, and driving future investment growth across its core industries.
In September 2024, Madison Dearborn Partners made a strategic investment in Harmonia Holdings Group, a tech provider for US federal agencies. This partnership is set to enhance Harmonia's digital transformation capabilities, focusing on AI, cybersecurity, and cloud services. The investment aligns with MDP's strategy of supporting innovative companies that provide cutting-edge solutions to enhance government services.
The Chicago-based fintech has recently been approached by at least one private equity firm interested in acquiring it, according to people familiar with the matter.
Nuveen, Russell deals power activity to $16.9 billion in transactions, triple the 2013 level
Deal ends roller-coaster ride for wealth management aggregator.
Start-up Lion Street in position to poach NFP reps and advisers.
After Madison Dearborn deal, Douglas Hammond takes over.
The SEC has named its investor advisory committee but still needs to appoint chairman and vice chairman, and set meeting schedule
Nuveen Investments Inc., the asset manager owned by Madison Dearborn Partners LLC, plans to start a fund to buy corporate debt, the firm said in a prospectus filed today with the U.S. Securities and Exchange Commission.
Open-end U.S. municipal-bond funds dropped an average 3.7 percent in the past month as investors withdrew money for the first time in seven months.
Nuveen Investments Inc., the asset manager owned by Madison Dearborn Partners LLC, agreed to buy the stock and bond funds of U.S. Bancorp's FAF Advisors unit for $80 million in cash and a 9.5 percent stake in Nuveen.
One big deal is on the books — and another is in the process of being finalized — a sign that merger and acquisition activity continues to accelerate in the money management industry.
One big deal is in the books — and another is in the process of being finalized — a sign that merger and acquisition activity continues accelerate in the money management industry.
Private-equity investors appear to be leading the pack of likely buyers for the three broker-dealers in the AIG Advisor Group, which houses 6,571 representatives, according to a number of industry sources.
