Key Takeaways
- • Vidur Khatri, principal at Boston-based Abry Partners, said at the 2026 PLANADVISER 360 Conference in Orlando, Florida, that his firm focuses on financial services, including law practice management, insurance services, retirement services and accountancies.
- • Abry typically partners with firms for three to five to seven years, offering either capital or a solution to support growth while preserving client-adviser relationships.
- • Green flags for private equity buyers include clear succession planning, second- and third-generation leadership, durable client relationships, specialized expertise and multiple growth levers such as technology, recruiting and selective M&A.
- • Red flags include heavy dependence on a single leader, lack of a succession plan, or growth strategies relying solely on acquisitions.
- • Abry's successful financial services investments have often been minority stakes, with Abry holding no more than 51% of the business, which Khatri said creates better alignment with founders.
Summary
Vidur Khatri, a principal at Abry Partners, a Boston-based private equity firm, spoke Tuesday morning at the 2026 PLANADVISER 360 Conference in Orlando, Florida, in a session titled "Understanding Private Equity's Interest in Advisory Firms." He said Abry concentrates on the financial services sector, with a focus on law practice management, insurance services, retirement services and accountancies. According to Khatri, private equity partnerships are intended to elevate existing client relationships, and "It's really about never losing that client-adviser relationship." Abry partners with companies for periods of three to five to seven years, providing either a solution or capital to support growth.
Khatri outlined the attributes that make advisory firms attractive to private equity buyers. He said a clear succession strategy is a key signal of readiness for sale, and that firms with identified second- and third-generation leadership demonstrate continuity beyond the founder. He also cited durable client relationships, specialized expertise and multiple growth levers, including investment in technology, recruiting and selective M&A. Khatri cited Abry's investment three years ago in Prime Capital Financial, a Kansas-based registered investment advisory with a retirement and wealth planning practice, as an example of convergence between retirement and wealth planning. He described Prime Capital as a fully integrated financial services firm. He said M&A "really grows the value of the business," but warned that "just buying businesses for the sake of accumulation can get sideways really fast." Heavy reliance on a single leader, the absence of a succession plan, or growth driven solely by acquisitions were identified as red flags.
Khatri also urged advisers to evaluate prospective investors as rigorously as investors evaluate them. He noted that private equity investments have defined start and end dates, and that alignment on a three- or five-year plan and expected returns is critical. Advisers should ask how an investor responds when portfolio companies face difficulties, what non-capital resources it offers, and whether current or former portfolio company executives would recommend the firm. Khatri said Abry's most successful financial services investments have often been minority stakes, noting that the firm does not own more than 51% of the business and that founders who retain ownership tend to remain significantly invested in growth. He described a pre-diligence vetting process and said diligence is designed to uncover legal, financial and operational risks.
Khatri outlined the attributes that make advisory firms attractive to private equity buyers. He said a clear succession strategy is a key signal of readiness for sale, and that firms with identified second- and third-generation leadership demonstrate continuity beyond the founder. He also cited durable client relationships, specialized expertise and multiple growth levers, including investment in technology, recruiting and selective M&A. Khatri cited Abry's investment three years ago in Prime Capital Financial, a Kansas-based registered investment advisory with a retirement and wealth planning practice, as an example of convergence between retirement and wealth planning. He described Prime Capital as a fully integrated financial services firm. He said M&A "really grows the value of the business," but warned that "just buying businesses for the sake of accumulation can get sideways really fast." Heavy reliance on a single leader, the absence of a succession plan, or growth driven solely by acquisitions were identified as red flags.
Khatri also urged advisers to evaluate prospective investors as rigorously as investors evaluate them. He noted that private equity investments have defined start and end dates, and that alignment on a three- or five-year plan and expected returns is critical. Advisers should ask how an investor responds when portfolio companies face difficulties, what non-capital resources it offers, and whether current or former portfolio company executives would recommend the firm. Khatri said Abry's most successful financial services investments have often been minority stakes, noting that the firm does not own more than 51% of the business and that founders who retain ownership tend to remain significantly invested in growth. He described a pre-diligence vetting process and said diligence is designed to uncover legal, financial and operational risks.
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