“Hybrid Advisors LLC and FaithStone Capital Partners LLC have formed a 50/50 joint venture named Hybrid Faithstone to launch an ambitious $3 billion fund of funds platform. The partnership combines Hybrid Advisors’ advisory expertise with FaithStone’s merchant banking and M&A infrastructure. The initiative aims to provide diversified access to alternative investments through a curated selection of underlying funds, targeting institutional and high-net-worth investors amid growing demand for private markets exposure.”
Hybrid Faithstone Joint Venture Targets Scale in Alternatives
Hybrid Advisors LLC, a boutique advisory firm known for its resilient and client-focused investment strategies, has teamed up with FaithStone Capital Partners LLC, a solutions-oriented global boutique advisory firm specializing in creative financing and strategic services for small to mid-size corporate clients. The binding agreement, executed in early March 2026, establishes Hybrid Faithstone as the master joint venture entity.
This 50/50 partnership leverages complementary strengths. FaithStone contributes its robust merchant banking infrastructure, extensive M&A advisory capabilities, and experience in executing complex transactions across sectors such as healthcare, technology, telecom, real estate, natural resources, consumer products, industrials, and special situations. The firm’s partners bring decades of collective experience from leading investment banks, having advised on transactions exceeding $50 billion in aggregate value.
Hybrid Advisors brings its advisory acumen, particularly in resiliency-focused consulting and investment management, to the venture. The collaboration positions Hybrid Faithstone to build a sophisticated fund of funds platform with an initial target of $3 billion in committed capital.
Fund of funds structures offer investors diversified exposure to private equity, venture capital, private credit, real assets, and other alternative strategies without the need to select and manage individual underlying managers directly. This approach reduces concentration risk, provides professional due diligence, and enables access to top-tier funds that might otherwise be inaccessible due to high minimums or capacity constraints.
The platform’s ambition reflects broader market trends. Institutional investors, family offices, and high-net-worth individuals continue to increase allocations to alternatives as traditional public markets face volatility from geopolitical tensions, interest rate dynamics, and economic uncertainties. Private markets have demonstrated resilience, often delivering uncorrelated returns and inflation-hedging characteristics.
Hybrid Faithstone plans to curate a portfolio of high-quality underlying funds across multiple vintages and strategies. Initial focus areas are expected to include private equity buyouts, growth equity, venture capital, and potentially opportunistic credit and real assets. The venture will emphasize rigorous manager selection, ongoing monitoring, and risk management to optimize net returns for investors.
The structure allows for scalability. Starting with seed commitments and early commitments from anchor investors, the platform aims to attract additional capital through targeted distribution channels. FaithStone’s merchant banking expertise will support deal sourcing, co-investment opportunities, and potential secondaries transactions to enhance liquidity and flexibility.
Key advantages of the joint venture include:
Diversification Benefits — Exposure to a broad range of managers and strategies mitigates single-fund risk.
Due Diligence Expertise — Combined advisory resources enable thorough vetting of underlying funds.
Access and Relationships — FaithStone’s transaction history opens doors to exclusive opportunities.
Operational Efficiency — A centralized platform streamlines administration, reporting, and fee structures for investors.
Alignment of Interests — The 50/50 ownership fosters strong commitment from both partners.
Challenges in the fund of funds space include layered fees, which can erode returns compared to direct investments, and the need for consistent outperformance in manager selection. Hybrid Faithstone intends to address these by negotiating favorable terms with underlying managers and maintaining a disciplined, value-oriented approach.
The announcement comes at a time when alternative asset managers are expanding platforms to capture growing inflows. Similar structures have gained traction among wealth managers seeking to offer clients sophisticated private market access without building in-house capabilities.
This venture underscores the evolving landscape for boutique firms. By partnering strategically, Hybrid Advisors and FaithStone aim to compete more effectively with larger players while preserving their agile, client-centric models.
The platform’s rollout will involve regulatory compliance, investor onboarding, and initial fund commitments. Success will depend on execution, market conditions, and the ability to deliver consistent risk-adjusted performance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult with qualified professionals before making investment decisions.