Yes, though free enterprise can lead to concentration of power too, that being the real problem. Of course unlike socialism, fascism, communism et al, capitalism, as a more efficient economic system, doesn't depend on centralized power to function. Only to be kept within whatever restraints the governed deem necessary.
In point of fact there has never been capitalism that is not controlled by the state to some degree.
It is supposed to work under the laws of Pure Competition. Unfortunately, almost all the assumptions which underlay the theory has been violated - particularly that no one has any impact on the market.
You are correct that it can and does lead to the concentration of wealth if there is no intervention. Example, small groups control the vast majority of wealth in all countries and the vast majority of the population has next to nothing.
This wealth is generally inherited.
Without a large and prosperous middle class to mediate the distribution of wealth and income this dichotomy can only lead to big trouble in a democracy.
This middle class is losing its prosperity and shrinking. The only real question is when will this come to a head.