Coalesce Capital is acquiring Workstreet, a provider of compliance and cybersecurity services to companies in regulated industries. Founded in 2024 and based in San Francisco, Workstreet aims to help companies build security and compliance programs that scale by pairing domain expertise with AI. The company's founders and management team are investing alongside Coalesce Capital.

Stephanie Geveda, founder and managing partner at Coalesce Capital, told PE Hub that Workstreet fits at the intersection of two powerful trends: the expansion of cybersecurity spending and the growing complexity of regulatory compliance. Before founding Coalesce in 2023, Geveda worked at Warburg Pincus, where she led the firm's 2021 investment in A-Lign, a Tampa-based cybersecurity and compliance services provider. She observed that neither auditors nor software tools fully solve the manual, labor-intensive work required to implement platforms, prepare for audits, and continuously maintain compliance.

Romeen Sheth, co-founder and CEO of Workstreet, said the company is looking to make add-on deals and grow organically through geographical expansion, capability expansion, and product and service expansion. As companies adopt large language models and AI agents, having a company that can communicate how to use AI safely is critical. AI itself is creating new cybersecurity challenges at a faster pace than ever before.

Cybersecurity remains one of the healthier sectors for technology dealmaking due to secular demand and regulatory complexity. Workstreet is Coalesce's seventh platform investment, and the firm has deployed more than 60 percent of its first fund. Recent deals include acquiring a majority stake in Marshall & Stevens and Decision HR. Coalesce is exclusively focused on investing in business services companies.