Dealmakers picked up their pace at the end of 2023, but apparently their destination was a rusty vat of molasses.

Driving the news: Global M&A activity fell more than 20% between Q4 2023 and Q1 2024, according to preliminary data released this morning by LSEG.

• The downturn didn't discriminate by geography, with declines in the U.S., Europe, and Asia-Pacific.
• The only silver lining was a 33% dollar increase over Q1 2023, although that had been the slowest first quarter in a decade.

What's happening: Buyers think prices are too high.

• Part of this ties to public equities, which keep setting new records. Even if a target is privately held, it's using listed stocks for comps.
• Interest rates also mattered, particularly in the middle of the quarter when the Fed's appetite for cutting looked a bit wobbly. This can best be seen in private equity deal activity, whose Q1-over-Q1 increase was much more modest at 8%.

The bottom line: First quarters have a habit of coming in soft, but this is still disappointing given January's consensus optimism.

Home Depot (NYSE: HD) has agreed to buy building materials supplier SRS Distribution for around $18.25 billion from Leonard Green & Partners and Berkshire Partners.

Why it's the BFD: This is the fifth-largest global merger of 2024, and easily the largest private equity exit.

• Yes, I incorporated this deal into the Q1 data above.

Catch up quick: Leonard Green bought SRS in 2018 for around $3 billion from Berkshire Partners, which retained a minority stake. Berkshire five years earlier had acquired the McKinney, Texas-based company from AEA Investors.

The bottom line: Inflation has caused many homeowners to scale back on large DIY projects, leading Home Depot and its rivals to scale up offerings for professional builders and contractors.

• Good thing for Home Depot that in 2020 it bought back the HD Supply business it had previously sold off. Until today, that $8 billion repurchase was the most Home Depot had ever paid in an acquisition.

• Coro, a cybersecurity startup focused on SMBs, raised $100m in Series D funding. One Peak led, and was joined by insiders Energy Impact Partners and Balderton Capital. https://axios.link/49gZvs7

⚡ Lightshift (fka Delorean Power), an Arlington, Va.-based developer of utility-scale energy storage solutions, raised $100m from Greenbacker Capital. www.lightshift.com

🚑 Pelago, a New York-based virtual substance abuse treatment startup, raised $58m in Series C funding. Atomico led, and was joined by Kinnevik, Octopus Ventures, YC, Eight Roads and GreyMatter Capital. https://axios.link/4aiFLpq

• Hume AI, developer of AI that understands human emotion, raised $50m in Series B funding. EQT Ventures led, and was joined by Union Square Ventures, Nat Friedman & Daniel Gross, Metaplanet, Northwell Holdings, Comcast Ventures, and LG Technology Ventures. https://axios.link/4awHl6q

• Blueground, a New York-based furnished monthly rental property company, raised $45m in Series D funding led by Susquehanna, per TechCrunch. https://axios.link/3VUvCuL

• Robovision, a Belgian computer vision platform for machinery manufacturers and production lines, raised $42m. Target Global and Astanor Ventures co-led, and were joined by Red River West. https://axios.link/49e8sSQ

🚑 InStride Health, a Boston-based provider of pediatric treatments for anxiety and OCD, raised $30m in Series B funding. General Catalyst led, and was joined by insiders .406 Ventures, Valtruis, Mass General Brigham Ventures, and Hopelab Foundation. www.instride.health

• Zafran, a New York-based security risk and mitigation startup, raised over $30m. Sequoia Capital and Cyberstarts co-led, and were joined by Cerca Partners and Penny Jar. www.zafran.io

• Fireworks.ai, a Redwood City, Calif.-based production AI platform, raised $25m in Series A funding. Benchmark led, and was joined by Sequoia Capital, Databricks Ventures, and Frank Slootman. www.fireworks.ai

• NewRetirement, a Mill Valley, Calif.-based financial planning startup, raised $20m. Allegis Capital led, and was joined by Nationwide Ventures, Northwestern Mutual Future Ventures, Plug and Play Ventures, and Motley Fool Ventures. https://axios.link/43I7I7y

• Champ Titles, a Cleveland-based vehicle title and registration platform, raised $18m in Series C funding. Point72 Ventures led, and was joined by W.R. Berkley Corporation, Eos Venture Partners, Guidewire Software, and Rev1 Ventures. https://axios.link/3xe7s3W

• Watttron, a German developer of sustainable packaging tech, raised €12m in Series B funding. Circular Innovation Fund led, and was joined by Demeter, Cycle Capital and the European Circular Bioeconomy Fund. https://axios.link/4abFHHV

• MyShell, a decentralized AI creator platform, raised $11m led by Dragonfly Ventures. https://axios.link/4a8sD5T

• Tonic App, a Portuguese data aggregation platform for physicians, raised €10.9m in Series A funding co-led by BlueCrow Capital and Iberis Capital. axios.link/4asTw4d

• BOB, a hybrid Layer-2 blockchain, raised $10m in seed funding. Castle Island Ventures led, and was joined by Mechanism Ventures, and Bankless Ventures. https://axios.link/3VBQSFs

• Keeyns, a Dutch tax tech company, raised €10m from Alea Capital Partners and Mountainview Capital Partners. https://axios.link/4aniUIY

⚡ Wase, a British biogas production tech startup, raised £8.5m. Extantia Capital led, and was joined by Hitachi Ventures, Wepa Ventures, Engie New Ventures, Elbow Beach Capital, and Empirical Ventures. https://axios.link/4cy9qfC

• Surge, a French precision medicine startup focused on the immune system, raised €7.5m. Eurazeo led, and was joined by Kima Ventures, Teampact, MH Innov', Boutique Venture, HCVC, and 50 Partners Santé. www.surge.care

• Metaview, an AI assistant for hiring, raised $7m. Plural led, and was joined by Coelius Capital and insiders Vertex Ventures US, Seedcamp, and Village Global. www.metaview.ai

• StealthMole, Singaporean dark web intelligence startup, raised $7m in Series A funding. Korea Investment Partners led, and was joined by Hibiscus Fund and Smilegate Investment. https://axios.link/4cxd6hL

• Cyvl.ai, a Somerville, Mass.-based transportation data infrastructure startup, raised $6m. Companyon Ventures led, and was joined by Argon Ventures, AeroX Ventures, Alumni Ventures, MassVentures, Launch Capital, and RiverPark Ventures. https://axios.link/3PCVEyx

• Flock.io, a Lindon-based web3 training startup, raised $6m in seed funding. Lightspeed Faction and Tagus Capital co-led, and were joined by DCG, OKX Ventures, and Volt Capital. www.flock.io

⚡ Ionobell, an SF-based silicon battery tech developer, raised $3.9m in seed extension funding co-led by Dynamo Ventures and Trucks VC. www.ionobell.com

• The Mobile-First Co., a French developer of B2B apps, raised €3.5m in pre-seed funding co-led by Lightspeed and Emblem. https://axios.link/3xb2TXX

• Orchard, a Seattle-based developer of agricultural robotic vision systems, raised $3.2m in seed funding. General Catalyst led, and was joined by Humba Ventures, Soma Capital, Correlation Ventures, VU Venture Partners, and Genius Ventures. https://axios.link/49ffBm7

• Arevo, a Swedish biotech focused on plant growth, raised €3.1m from Industrifonden. https://axios.link/4ay2Jsj

• SydeLabs, an SF-based AI security and risk management startup, raised $2.5m. RTP Global led, and was joined by Picus Capital. www.sydelabs.ai

🚑 Wellola, an Irish provider of patient management software, raised €2.2m. Elkstone led, and was joined by Enterprise Ireland and Bay Advisory. www.wellola.com

• Mortgage Brain, a British mortgage tech startup, raised £1.5m from Fintel. https://axios.link/4axkZSm

🚑 Habitat Health, a new Oakland, Calif.-based home health company, raised funding from Kaiser Permanente and Town Hall Ventures. www.habitathealth.com

🚑 Transcarent, an SF-based health care navigation company, is raising $125m led by General Catalyst at a $2.1b valuation, per Insider. axios.link/3IWbbG2

• BlackRock and Grain Management invested in Phoenix Tower International, a Boca Raton, Fla.-based wireless communications infrastructure firm. www.phoenixintl.com

• Brown University and BTG Pactual are in talks to invest in Fortress Investment Group, which is being sold by SoftBank to Mubadala, in order to help satisfy CFIUS concerns, per Bloomberg. https://axios.link/3TC63vF

• The Chernin Group invested in Unrivaled Sports, a new parent company for the youth sports properties owned by Josh Harris and David Blitzer. https://axios.link/4as9VpE

• CVC Capital Partners acquired Grupo Monbake, a Spanish frozen dough maker, from Ardian. https://axios.link/43z18jq

• Davidson Kempner and Broadwing invested in Upchurch Cos., a provider of mechanical, electrical and plumbing services in Mississippi. www.upchurchplumbing.com

• Integrum invested in Program Productions, a provider of live sports production crewing and workforce management solutions. www.programproductions.com

• Mill Point Capital acquired Proficium, a Union City, Calif.-based cabling and connected infrastructure supplier. www.proficium.com

⚡ One Equity Partners and Buckthorn Partners acquired Acteon Group, a British offshore energy infrastructure services firm, from KKR. www.acteon.com

• One Equity Partners completed its purchase of TechnipFMC's (NYSE: FTI) measurement solutions unit. www.technipfmc.com

⚡ Silverbow Resources (NYSE: SBOW), a Houston-based oil and gas producer, rejected a sweetened $2.1b takeover offer from Kimmeridge. https://axios.link/3IXfMYr

🚑 Boundless Bio, a San Diego-based oncology drug developer focused on extrachromosomal DNA, raised $100m in its IPO. The company priced in the middle of its $15-$17 range for a $396m fully diluted value, and will trade on the Nasdaq (BOLD). It had raised around $250m from firms like Arch Venture Partners, Fidelity, RA Capital, Bayer, Nextech, and Vertex Ventures. https://axios.link/3ILVFfR

⚡ EnCap Investments is seeking to sell XCL Resources, an energy producer focused on the Uinta shale in Utah, per Reuters. A deal could fetch around $2.8b (including debt). https://axios.link/49di0xt

• Genstar Capital is seeking to sell 2-10 Home Buyers Warranty, an Aurora, Colo.-based home warranty firm that could fetch around $600m, per Bloomberg. https://axios.link/49amDs1

• Golden Gate Capital is seeking to sell restaurant chain Bob Evans, per Axios Pro. https://axios.link/3PK5RsX

• Oakley Capital is weighing a sale for Ocean Technologies Group, a Norwegian maritime training software firm that could fetch more than $1b, per Reuters. https://axios.link/3TEspg5

• Spindrift, a Newton, Mass.-based sparkling water maker, is seeking a buyer, per Bloomberg. Backers include Balance Point Capital, VMG Partners, KarpReilly, and Prolog Ventures. https://axios.link/4adrOc5

⚾ MLB owners approved Carlyle co-founder David Rubenstein as new owner of the Baltimore Orioles.

• He tells me that this was his second serious effort at buying his hometown team, and that he doesn't expect to interfere with baseball operations. Go deeper.

• Hard Rock Digital agreed to buy some of the U.S. consumer-facing assets of British bookmaker 888 Holdings (LSE: 888). https://axios.link/498SOIs

• Keysight Technologies (NYSE: KEYS) agreed to buy British telecom testing firm Spirent Communications (LSE: SPT) for £1.16b, besting Spirent's £1b deal with Viavi Solutions (Nasdaq: VIAV). https://axios.link/3IYkzss

🌎 Schlumberger (NYSE: SLB) agreed to buy an 80% stake in Aker Carbon Capture (Oslo: ACC) for nearly $400m. https://axios.link/49eD4nd

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• Alteria Capital, an Indian VC firm, raised around $186m for its third fund. https://axios.link/3VHxmHD

• Super{set}, a SF-based startup studio, raised $90m for its second fund. www.superset.com

• Bain Capital is making several changes to its senior leadership, per a memo seen by Axios.

• Jonathan Lavine becomes chair, David Gross gets promoted to co-managing partner, and Chris Gordon and Robin Marshall become global co-heads of private equity.

🚑 Nicole Gaudelli joined GV as an entrepreneur-in-residence. She previously was VP of gene editing at GV portfolio company Beam Therapeutics. https://axios.link/43EykGA

• Investcorp promoted Abbas Rizvi to CFO, succeeding Jan Erik Back. www.investcorp.com

• Linos Lekkas is retiring from Citi, where he is vice chair of Europe and Middle East investment banking. https://axios.link/3VDw4NM

• Dean Meyer joined Sequoia Capital as an Israel-based partner. He previously was with Vine Ventures. https://axios.link/3vG4aG2

• Sumitomo Mitsui Banking Corp. promoted Stephanie Bowker and Yoshiyuki Natsuyama to co-heads of Americas corporate and I-banking coverage. www.smbcgroup.com