Keystone Splits: Advisory Arm Sold to Audax, AI Unit Spins Off

LOS ANGELES, CA – January 15, 2026 – In a significant strategic maneuver highlighting key trends in both private equity and the technology sector, RLH Equity Partners has announced a major recapitalization of its portfolio company, Keystone. The deal involves two distinct parts: the sale of Keystone’s acclaimed global technology and advisory services practice to Audax Private Equity, and the simultaneous spin-out of its artificial intelligence division into a new, independent entity named Keystone.AI.

The transaction effectively splits Keystone into two specialized firms, each poised to pursue aggressive growth in separate but related high-demand markets. The advisory practice, known for its unique blend of economics, strategy, and deep technical expertise, will continue under the Keystone brand with the backing of Audax, a prolific middle-market investor. Meanwhile, Keystone.AI will launch as a focused B2B AI software-as-a-service (SaaS) provider, with RLH Equity Partners retaining a minority ownership stake, signaling continued confidence in its potential.

A Strategic Carve-Out for Specialized Growth

The decision by RLH Equity Partners to divide and divest Keystone represents a sophisticated value-creation strategy increasingly common in private equity. Rather than a straightforward sale of the entire company, this "carve-out" allows each business unit to be valued and cultivated based on its unique strengths and market dynamics. The move separates a mature, high-touch professional services business from a high-growth, scalable AI product company.

Since its initial investment, RLH has overseen a period of significant expansion for Keystone. "Since RLH's original investment in the Company, Keystone has delivered rapid organic growth in both revenue and EBITDA," noted RLH Managing Director Kevin Cantrell. He praised the Keystone team for building a "truly distinctive business" that blends "high intellect and high touch," a combination he described as the essence of RLH's investment strategy.

This strategic split allows the advisory practice to leverage the resources of a new owner while enabling the nascent AI business to operate with the agility of a startup. This approach is designed to unlock maximum value by allowing each entity to attract the right kind of talent, capital, and strategic partnerships for its specific goals. The transaction was advised by Guggenheim Securities, LLC as lead financial advisor and Goldman Sachs & Co. LLC as co-advisor, underscoring the deal's financial significance.

Audax's "Buy & Build" Fuels Consulting Consolidation

The acquisition of Keystone's advisory practice fits squarely into the well-established playbook of its new owner, Audax Private Equity. Audax, a firm managing over $19 billion in assets, is renowned for its "Buy & Build" strategy, which focuses on acquiring middle-market platform companies and accelerating their growth through both organic initiatives and strategic add-on acquisitions.

Keystone's advisory practice, which has earned a coveted spot on Vault's list of the Top 50 Consulting Firms for the last three years, presents a strong platform for this strategy. The practice specializes in assisting global technology firms, law firms, and regulators with complex issues at the intersection of technology, economics, and business strategy, including competition dynamics, intellectual property, and algorithmic bias. This niche expertise is highly valuable in an era defined by digital transformation and regulatory scrutiny of the tech industry.

Jeff Marowits, who is transitioning from President of Global Services to become CEO of the Audax-owned Keystone advisory practice, expressed optimism about the new partnership. "Our technology and advisory practice was built to help firms navigate the enormous opportunities and risks from transformative technologies like today's AI moment of change," Marowits stated. "We are fortunate for [RLH's] support, and to be exceptionally well positioned for the future and excited to expand our impact with Audax as our partner." The infusion of capital and strategic guidance from Audax is expected to help the practice scale its operations, expand its geographic footprint, and deepen its service offerings.

The Birth of Keystone.AI: A New Player in B2B AI

Concurrent with the sale of the advisory arm, the spin-out of Keystone.AI marks the formal entry of a new and ambitious player into the booming B2B AI SaaS market. The new company will focus on developing and deploying "foundation models"—large, pre-trained AI systems—to help clients optimize critical business operations such as demand forecasting, pricing, and inventory planning.

This launch comes at a time of explosive growth for enterprise AI. Market research projects the AI software market to swell to over $250 billion by 2027, with specific segments like AI in supply chain and retail expected to grow at compound annual growth rates exceeding 20%. Businesses are increasingly turning to specialized AI solutions to drive efficiency, reduce costs, and gain a competitive edge through data-driven decision-making.

Keystone.AI aims to capture a piece of this market by providing sophisticated, targeted solutions that go beyond general-purpose AI tools. Greg Richards, the former CEO of the combined Keystone entity, will now lead Keystone.AI as its CEO. "RLH was a believer in both our advisory practice and B2B AI SaaS business from the beginning and has been a terrific partner to our team," Richards commented. "We are incredibly excited about the future of both businesses as they continue to build on that foundation." RLH’s decision to maintain a minority stake in Keystone.AI underscores a strong belief in the spin-off’s potential to become a leader in its own right.

Navigating the Duality of Tech's Future

This multifaceted transaction serves as a powerful illustration of the dual paths shaping the modern technology landscape. On one hand, the increasing complexity of technology, competition, and regulation creates a robust and growing market for specialized human expertise, the very service Keystone's advisory practice provides. Companies need trusted advisors to help them navigate the strategic implications of AI, data privacy, and digital ecosystems.

On the other hand, the drive for scalability, automation, and operational efficiency fuels the demand for powerful AI software products like those offered by Keystone.AI. These tools promise to automate complex analytical tasks and deliver predictive insights at a scale that human teams cannot match.

By splitting Keystone, RLH Equity Partners has created two "pure-play" entities, each optimized to excel in one of these domains. The advisory firm can focus on high-value, bespoke consulting engagements, while the AI company can concentrate on product development, recurring revenue, and rapid scaling. This strategic unbundling recognizes that the business models, talent requirements, and capital needs for a premier consulting firm and a cutting-edge SaaS company are fundamentally different. The move allows both newly defined organizations to focus intently on their core missions, positioning them to independently capitalize on the immense opportunities within their respective markets.