Abry Partners says PE buyers test succession before client books

Vidur Khatri, a principal at Boston-based Abry Partners, said the first thing he reads in an advisory firm coming to market is how settled its succession is. "It is very clear when you walk into a room and a business is for sale how well they've been prepared for sale," Khatri said at the 2026 PLANADVISER 360 Conference in Orlando, Florida, PLANADVISER reported.

Abry's Form ADV, filed March 31, 2026, reports $69 million in regulatory assets under management in the registered advisory entity. The filing lists two accounts and three employees. Khatri said the private equity firm partners with companies for three to seven years, mostly in law practice management, insurance services, retirement services and accountancies.

For an owner planning an exit, buyers test leadership depth before they test the client list. Khatri said firms with identified second- and third-generation leadership teams are more attractive because they demonstrate continuity beyond the founder. A firm that can name those leaders shows a buyer that revenue survives the founder. One where the founder still holds every relationship makes retention the underwriting question that decides whether a multiple holds.

"It's really about never losing that client-adviser relationship," Khatri said. His other criteria include durable client relationships, specialized expertise, and more than one lever for growth: continued spending on technology, recruiting advisors who serve clients better, and buying other firms selectively. "We love to come in and invest in businesses where there are multiple levers for growth," he said.

Khatri pointed to Abry's investment three years ago in Prime Capital Financial, a Kansas-based registered investment advisory with retirement and wealth planning practices, as an example of the convergence between retirement and wealth advice that can accompany acquisitions.

Khatri's three-to-seven-year partnership model implies a founder who sells a majority stake and stays on is likely to face a second transaction inside that window. The governance and exit rights negotiated in the first deal then govern the second.