Keystone Splits to Conquer: AI Advisory Arm Gains PE Backing, Spins Off Software

NEW YORK, NY – January 08, 2026 – In a decisive strategic maneuver aimed at capturing two distinct, high-growth segments of the technology market, advisory firm Keystone has announced a landmark investment from Audax Private Equity while simultaneously spinning off its proprietary software division into a new, independent entity named Keystone AI. The dual transaction, which closed on January 2, sharpens Keystone’s focus on its core technology and ecosystem advisory services, arming it with significant capital to meet surging global demand for expertise in artificial intelligence and digital regulation.

The move bifurcates the company, allowing the newly christened Keystone AI to pursue a dedicated path in the enterprise software market with its Deep Enterprise™ AI platform, a sophisticated decision engine for manufacturing supply chains. The restructuring marks a pivotal moment for the 20-year-old firm, reflecting a calculated bet that specialized focus is the key to dominating the next wave of technological transformation.

Doubling Down on the Brain Trust

At the heart of the deal is Keystone’s strategic decision to become a pure-play advisory powerhouse. Founded in 2003 with the vision of navigating “transformative innovations,” the firm has built a formidable reputation by advising a blue-chip clientele that includes Microsoft, Meta, Amazon, and Oracle on high-stakes litigation, regulatory challenges, and competitive strategy. The investment from Audax is a powerful endorsement of this model, particularly as businesses and governments grapple with the seismic shifts brought by generative AI.

Keystone’s competitive edge lies in what it calls its “Triad of Skills”—an integrated approach that blends the expertise of technologists, economists, and management scientists. This interdisciplinary model is supercharged by a network of world-renowned experts, including Dr. Susan Athey, a Stanford economics professor and former Chief Economist for the U.S. Department of Justice Antitrust Division, and co-founder Marco Iansiti, a Harvard Business School professor who literally wrote the book on the firm's philosophy in The Keystone Advantage.

This concentration of intellectual capital has become an invaluable asset in a market desperate for credible guidance. As part of the transaction, Keystone’s leadership is being streamlined to capitalize on this momentum. Jeff Marowits, formerly the firm's President, steps into the role of CEO.

“Keystone was made for this moment,” said Marowits in a statement. “From Web 1.0 to mobile and social, and cloud to machine learning, Keystone has been ground zero for every technology shift. We have been preparing for the AI moment from the start. Our partnership with Audax allows us to continue to grow our team and processes to meet the outsized demand for our work and expert field.”

The Audax "Buy & Build" Mandate

The infusion of capital and strategic guidance comes from Audax Private Equity, a major middle-market investor known for its disciplined “Buy & Build” strategy. With $19 billion in assets under management, Audax doesn’t just invest; it actively partners with portfolio companies to accelerate growth through organic expansion and a series of strategic add-on acquisitions. The firm’s “Audax Value Agenda™” provides a framework for creating, enabling, and protecting value across the investment lifecycle.

This playbook suggests an aggressive growth trajectory for Keystone. The firm has already expanded its footprint with operations in Washington D.C., the United Kingdom, and the Middle East. With Audax’s backing, Keystone is poised to accelerate this expansion and potentially acquire smaller, specialized firms to bolster its offerings in AI strategic advisory and global technical investigations.

“Keystone has built a platform grounded in deep technical and advisory expertise, one that we think sets it apart from traditional consulting and technology firms,” noted Bill Allen, a Senior Managing Director at Audax Private Equity. “We are excited to partner closely with Keystone to support strong governance and disciplined growth.”

Audax’s investment history in the professional services sector, such as its backing of accounting firm Doeren Mayhew, indicates a pattern of providing capital to enhance service offerings and expand geographic reach, a model that aligns perfectly with Keystone's stated ambitions.

Birth of a Contender: Keystone AI Targets Supply Chain Chaos

While the advisory business gears up for expansion, the spin-off creates a new, highly focused player in the enterprise software space. Keystone AI will now operate as an independent company led by Greg Richards, Keystone's former CEO. Its mission is to commercialize the Deep Enterprise™ AI platform, a system incubated for years within the parent firm.

Described as a “scientific prediction and decision engine,” the platform is designed to tackle one of the most complex and costly challenges in modern industry: managing global manufacturing supply chains. It uses advanced AI to analyze vast streams of data, predict demand, quantify uncertainty, and automate critical decisions around inventory, production, and logistics. This allows manufacturers to move beyond static, heuristic-based planning to a more dynamic, AI-driven operational model.

The timing is critical. Global supply chains, strained by volatility and complexity, are struggling with legacy enterprise resource planning (ERP) systems that were not built for today's environment. Keystone AI aims to augment these systems, not replace them, helping companies reduce waste, cut working capital, and improve service levels.

A significant vote of confidence comes from RLH Equity Partners, which first invested in Keystone in 2021. While selling its stake in the advisory firm to Audax, RLH is retaining its investment in the newly formed Keystone AI, signaling a strong belief in the software company’s standalone potential.

Richards, who has a background in engineering and robotics in addition to his long tenure leading Keystone, is well-suited to guide the new venture. He and Iansiti will also remain on Keystone's Board of Directors, ensuring a continued strategic link between the two organizations.

The deal, for which financial terms were not disclosed, represents a sophisticated restructuring designed to unlock greater value from both sides of the original business. By separating the high-touch, expert-driven advisory services from the scalable, product-focused software business, each entity can pursue a growth strategy tailored to its specific market. The involvement of top-tier financial advisors like Guggenheim Securities and Goldman Sachs underscores the transaction's scale and strategic importance. As the spin-off finalizes in the coming months, the tech industry will be watching two distinct but related entities, both born from the same DNA, as they set out to capture the immense opportunities of the AI era.