CTO Labs expands AI advisory with Sydney office move

CTO Labs has expanded its Technology & AI Advisory practice and moved its Sydney office to Pitt Street after a record year for transaction volume.

The firm has relocated to Level 2, 62 Pitt Street in Sydney's central business district, closer to the private equity investors, boards and portfolio company executives it advises on deals and operational change.

The expansion comes alongside a run of senior hires across mergers and acquisitions, artificial intelligence, technology and advisory work. The practice now supports investors and leadership teams across the full investment lifecycle, from new investments to operational work inside portfolio companies and preparation for ownership change.

Mukund Rajan leads the Technology & AI Advisory practice, bringing experience in operational and technology transformation. That area has become more prominent for private equity-backed businesses as owners look for new routes to growth during longer hold periods.

CTO Labs advises private equity and corporate deal teams on technology issues linked to transactions and ownership. Firms like CTO Labs are typically brought in to assess technology risks before an acquisition, review digital operating models after a deal, and advise management teams on systems, data and artificial intelligence priorities during ownership.

The latest changes point to rising demand for advice that connects dealmaking with post-acquisition execution. Investors are paying closer attention to technology quality, cyber risk, software architecture and AI planning as they seek to protect value in acquisitions and improve performance after deals close.

Office move

The new office is intended to support more regular meetings with clients in Sydney, where many investment firms, company boards and senior executives are based. The site includes collaborative working areas designed for client discussions.

The relocation follows the company's annual offsite, which began with a family gathering at the new office before continuing in the Hunter Valley. The business described the offsite as a chance to reconnect around strategy and strengthen collaboration across the team.

While the office move is a visible sign of expansion, the bigger shift appears to be in the scope of the advisory unit. Technology specialists serving private equity have moved well beyond traditional IT diligence in recent years as investors seek help with digital execution during ownership, not just pre-deal assessments.

Artificial intelligence has added to that demand, but it has also created uncertainty for boards and deal teams deciding where to invest and how to assess potential returns. That has opened space for advisers that can link strategic questions with operational realities inside portfolio companies.

Joshua Hinton, Director and Founder, CTO Labs, outlined that position in comments accompanying the announcement.

"There's a lot of noise about AI and technology in the market, and no agreed playbook for leading through it, particularly as hold periods extend and with technology central to the next phase of value creation," said Joshua Hinton, Director and Founder, CTO Labs.

His remarks reflect a broader change in the market for technology advice. Private equity firms once tended to separate transaction support from longer-term transformation work, but those lines have blurred as buyers seek a clearer picture of what will be required after a purchase and how technology decisions will affect exit options.

That shift has helped drive demand for advisers that can work across diligence, operating plans and exit preparation. CTO Labs said its expanded practice is designed to address those needs across different stages of ownership.

Hinton's second comment focused on how the firm sees its role with clients.

"We're helping clients gain more clarity around that, whether that's entering a new investment, optimising activities within a private equity-backed enterprise, or preparing for the next ownership chapter. Our new Sydney base makes it much easier to do that," said Hinton.

The company did not disclose the financial terms of the office move or the number of hires made as part of the expansion. It said further recruitment is planned across the business.

Images distributed with the announcement identified Rajan alongside Hinton and Mike Mengell, Chief Technology Officer and Co-Founder, underscoring the seniority the business is placing behind the expanded advisory offer.

CTO Labs said the practice supports investors and leadership teams throughout the investment lifecycle, with the new Sydney office intended to bring it closer to clients it works with day to day.