In a move set to reshape the investment landscape, Hybrid Advisors LLC and Faithstone Capital Partners LLC have united to create Hybrid Faithstone, a master joint venture focused on developing a $3 billion Fund of Funds within the next 18 months. This strategic partnership, formalized on March 7, 2026, combines the strengths of both firms, blending institutional capital market expertise with a robust multi-strategy investment platform.
Partnership Structure
The joint venture establishes an equal 50/50 partnership, where Faithstone Capital Partners will leverage its capabilities in merchant banking, mergers and acquisitions, and institutional capital distribution. In turn, Hybrid Advisors will contribute its extensive Fund of Funds services, enhancing the overall investment approach.
Faithstone Securities LLC, a wholly owned subsidiary of Faithstone, will act as the exclusive broker-dealer for the venture. It will oversee all securities activities related to the joint venture, including serving as the placement agent and leading the syndication of debt and equity.
Market Landscape
This collaboration emerges amid a rapidly expanding global investment management industry. As of 2024, approximately 140,000 regulated public funds exist worldwide, managing a staggering $120 trillion in assets. The United States holds a significant portion, representing about 53% of this global total.
The overall number of investment funds, which encompasses hedge funds, private equity, and venture capital, surpasses 190,000. Notably, U.S. mutual fund assets alone account for approximately $33.9 trillion, whereas ETF assets exceeded $10 trillion for the first time in 2024. In 2025, the value of private equity deals reached around $2.6 trillion, underscoring the industry’s complexity and scale.
Diversity Challenges
Despite this immense growth, the control of capital remains disproportionately concentrated. In the U.S., firms owned by white males manage approximately 98.6% of total assets under management. Minority-owned firms represent about 6.1% of fund management companies but manage less than 1% of total AUM, with some estimates suggesting this figure is as low as 0.7%. The situation is even more pronounced among Black-owned firms, which hold a mere 0.2% of global AUM.
In the public fund sector, minority-owned firms make up roughly 9.2% of mutual fund firms and 9.3% of hedge fund firms, yet they command only a small fraction of total capital. A 2017 survey indicated that a staggering 88% of mutual fund managers were white males.
Progress in Private Markets
A report from McKinsey in 2023 highlights that ethnic and racial minorities account for approximately 20% of managing director-level investment professionals in the U.S. and Canada, though they constitute around 41% of the overall population. Among Black-owned firms, the concentration of capital is stark, with the 89 member firms of the National Association of Investment Companies managing roughly $253 billion, contrasting sharply with the nearly $22 trillion managed by the leading non-Black firms.
Currently, fewer than 20 Black-owned or led firms manage over $1 billion in various strategies. Noteworthy players include Vista Equity Partners, with about $103.8 billion under management, and Ariel Investments, which manages approximately $16.2 billion.
Vision for the Future
Granger Whitelaw, Executive Chairman of Faithstone Capital Partners, expressed enthusiasm about the partnership with Hybrid Advisors. He stated that the collaboration aims to leverage their combined strengths to deliver innovative investment products while also adhering to their faith-based mission.
Dion Pouncil, Founder and Chairman of Hybrid Advisors, echoed this sentiment, describing the partnership as a natural progression toward creating a differentiated capital markets platform. He emphasized that their goal extends beyond mere financial returns; they aim to build a lasting financial legacy.
Principles of the Hybrid Faithstone Model
The model underpinning the Hybrid Faithstone initiative is rooted in “constructive capitalism.” This philosophy posits that it is possible to positively impact people’s lives while also achieving profitability. Through their Fund of Funds approach, the joint venture seeks to fulfill this mission, providing investors with access to a diverse array of investment opportunities.
About the Firms
Faithstone Capital Partners is a global advisory firm known for delivering strategic, solutions-oriented outcomes. Its expertise spans a wide range of sectors, including healthcare, technology, and real estate. The firm boasts a team of seasoned professionals with extensive experience in investment banking, having overseen more than $80 billion in completed transactions.
Hybrid Advisors, on the other hand, specializes in managing a Fund of Funds platform that offers investors access to a diversified portfolio of opportunities across private credit, debt, and equity. The leadership team, comprising Dion Pouncil and Dan Fleyshman, brings unique backgrounds and a commitment to financial education and community support.
Conclusion
The establishment of the Hybrid Faithstone joint venture represents a significant step towards addressing capital concentration issues in the investment industry. By harnessing the strengths of both firms and adhering to a mission-driven approach, the partnership aims to create a more inclusive and innovative investment platform. This initiative not only seeks to generate returns but also aspires to leave a lasting impact on the financial landscape.
- Hybrid Advisors and Faithstone Capital Partners create a 50/50 joint venture.
- The partnership targets a $3 billion Fund of Funds in 18 months.
- Faithstone Securities LLC will act as the exclusive broker-dealer.
- The joint venture addresses capital concentration and diversity in investment management.
- The approach emphasizes constructive capitalism and lasting financial legacies.
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