Alceon takes majority stake in Microsoft partner Engage Squared in debut deal for new PE Access Fund 

Alceon has acquired a majority interest in Engage Squared, one of Australia’s largest independent Microsoft partners, in the first investment for the recently launched Alceon Private Equity Access Fund.

Founded in 2014, Engage Squared helps enterprise and government organisations adopt artificial intelligence, strengthen cybersecurity and improve employee productivity and collaboration through Microsoft technologies. The company serves customers across Australia, New Zealand and the broader Asia-Pacific region and has 170 employees, across 8 offices.

The investment gives Engage Squared capital and operational support to accelerate growth, deepen its AI and agent capabilities and broaden its service offering. It also marks a return by Alceon into the managed IT services sector following the successful divestment of its position in efex. Alceon invested in efex in 2021 and championed the businesses’ ‘buy and build’ strategy, supplementing its rapid growth across Australia before the sale of its investment in late 2025.

Alceon’s Private Equity Access Fund offers access to Alceon’s lower mid-market private equity strategy, targeting founder-led Australian and New Zealand businesses with strong cashflow generation, attractive growth prospects, and clear value creation opportunities. This acquisition of Engage Squared reflects this focus, and Alceon’s aspiration to invest in strong management teams and scalable business models that provide several pathways for value creation.

Zac Midalia, Managing Director and Head of Private Equity at Alceon, said: “Engage Squared sits at the intersection of two themes where we have strong conviction: the Australian lower mid-market and enterprise adoption of AI. The business has established a commanding position within the Microsoft ecosystem, building an impressive reputation for helping organisations translate AI ambition into practical business outcomes. There is a significant opportunity to invest behind that growth story, both organically and through targeted acquisitions.”

“More broadly, Alceon continues to see compelling opportunities to partner with exceptional founders and management teams operating in sectors benefiting from long-term structural growth. Engage Squared is a best-in-class example of that strategy in action, and we are excited to partner with Alastair and the team to strengthen its position in the market,” said Mr Midalia.

Group CEO Alastair Cashen at Engage Squared said: “Engage Squared is in the strongest position we’ve ever been in. Every day we help some of APAC’s leading organisations to turn AI ambition into real business outcomes, moving beyond experimentation to enterprise-scale adoption and transformation.”

“This investment is about accelerating that momentum. Alceon’s track record of partnering with high-growth businesses, combined with our deep Microsoft expertise and market leadership, gives us the opportunity to invest further in our people, capabilities and customers.”

“We believe AI represents the most significant technology shift of our generation. As demand continues to grow, this partnership positions Engage Squared to expand our impact, help more organisations realise value from AI, and continue building the market-leading Microsoft practice in our region.”

Group CEO Alastair Cashen will continue to lead Engage Squared alongside the existing management team, which will retain a substantial ownership position alongside Alceon. As part of the transaction, co-founder Stephen Monk will depart the business.