Wellington Management last month raised $2.6 billion for its fourth fund focused on late-stage private investing, a strategy that's seen some of its more prominent players begin to slink away.

• The slowdown is real, per a new PitchBook report that says U.S. venture growth value this year will fall below the $50 billion mark set in both 2021 and 2022.
• It adds: "There are now more than 2,000 venture-growth companies. Outright failure of venture-growth companies is an uncommon event, but for those companies that may need to accept a low exit value because of current conditions and the lack of venture-growth capital, it may feel like one."

So I spoke with Matt Witheiler, Wellington's sector lead for consumer and tech sector lead, for his thoughts on where things stand. Some highlights:

1 big difference: "What's changed over the past six months is people are way more accepting of the down round."

• Witheiler says it's a combination of the elongated public market correction — despite recent Nasdaq gains — and the safety in numbers that come with peer private companies doing down rounds of their own.

Plus... "Of the five companies we’ve invested in so far out of this fund, only one has been software, even though software is considered the most robust private market sector. So why only one? Because those companies were overcapitalized so much during 2020 and 2021, sometimes raising over a billion dollars of equity in a single year at crazy valuations, there’s little desire to go back and add more to the balance sheets. They don’t need it, so why reset price?”

IPO expectations: "I see the bankers pushing for IPOs because that's how bankers make money. So every banker is like, 'Cava went out and did well, so you guys should do it.' We try to be a little bit more reserved in our messaging ... The companies in our portfolio that do have confidential S-1s out, I think the majority of them are thinking Q1 of next year is the first real point they're going to evaluate taking that step."

• Witheiler adds that his public market peers at Wellington, which manages over $1 trillion, still aren't clamoring for new names — instead continuing to focus on existing portfolio companies.

Giant generative AI rounds: "It is super unusual. They're late-stage companies by valuation, but early-stage or pre-early-stage by traction.

• "We've told our LPs we're investing in companies that will go public in the next four years — generally companies with at least $50 million in revenue —and it's hard for us to look at these generative AI companies and think we should be participating, so we have not ... The space is evolving so fast that maybe companies besides OpenAI get to that level in the next three or four quarters, but it hasn't happened yet."

The Federal Trade Commission yesterday said it will appeal a U.S. federal court decision that effectively allows Microsoft to close its $68.7 billion acquisition of Activision Blizzard.

Why it's the BFD: The appeal may appear perfunctory, but it's a high-stakes move for FTC chair Lina Khan, who's struggled to get court buy-in for her sweeping antitrust ambitions.

• It reminds me of this scene in "A Few Good Men" when Demi Moore's character "strenuously objects" to a judge's ruling, and gets dressed down by co-counsel.
• The move also comes ahead of Khan's testimony today in front of the House Judiciary Committee (watch live at 10am ET).

The bottom line: If the FTC's appeal works, then Khan gets to take a tentative victory lap, and forces Microsoft and Activision to renegotiate a closing date. If it doesn't, Khan's cool streak continues and she'll have to think deeper about "the difference between paper law and trial law."

• Bobbie, an SF-based organic infant formula startup, raised $70m in Series C funding led by PowerPlant Partners. It also acquired Nature’s One, a Lewis Center, Ohio-based pediatric nutrition company. https://axios.link/3pMi7iW

🚑 Causaly, a London-based AI platform for pharma testing, raised $60m in Series B funding. Iconiq Growth led, and was joined by insiders Index Ventures, Marathon Venture Capital, EBRD, Pentech Ventures and Visionaries Club. https://axios.link/46JTt38

• Secure Code Warrior, an Australian cybersecurity training platform, raised US$50m in Series C funding. Paladin Capital Group led, and was joined by insiders Goldman Sachs and ForgePoint Capital. www.securecodewarrior.com

• Silo, an SF-based provider of food supply chain solutions, raised $32m in Series C funding. Koch Disruptive Technologies led, and was joined by insiders Andreessen Horowitz, Haystack Capital, Tribe Capital, Collate Capital and Moore Capital. https://axios.link/44K6ecf

🌎 Allonnia, a Boston-based bioremediation company focused on waste management, raised $30m in Series A extension funding. Bison Venture sled, and was joined by IronGrey, BHP Ventures, Vale Ventures, Wholestack, PPNG and insiders Battelle, General Atlantic and Viking Global Investors. www.allonnia.com

• Radar, a New York-based provider of in-store retail inventory management solutions, raised $30m in Series A funding led by Align Ventures, per Axios Pro. https://axios.link/44FfrCu

🚑 CarePredict, a Fort Lauderdale, Fla.-based provider of preventive care enablement tech, raised $29m. Medtech Convergence Fund and Aspire Healthtech Partners co-led, and were joined by Secocha Ventures and Las Olas VC. https://axios.link/3Y3Qpep

• Simbe Robotics, an SF-based maker of retail inventory robotics, raised $28m in Series B funding led by Eclipse. www.simberobotics.com

• Bedrock, a developer of autonomous underwater vehicles for surveying and mapping coastal areas, raised $25.5m. Northzone and Primary Venture Partners co-led, and were joined by Valor Equity Partners, Eniac, Quiet Capital and R7. https://axios.link/3roPB7p

• MerQube, an SF-based financial indexing platform, raised $22m in Series B funding. Intel Capital led, and was joined by Allianz Life Ventures and insiders Citi, JPMorgan, Laurion Capital Management and UBS. www.merqube.com

• Zluri, a SaaS ops platform, raised $20m in Series B funding. Lightspeed Venture Partners led, and was joined by MassMutual Ventures, Endiya Partners and Kalaari Capital. www.zluri.com

🚑 Affect Therapeutics, a McLean, Va.-based addiction treatment startup, raised $16m in Series A funding. Artis Ventures led, and was joined by AlleyCorp, CityLight, LifeArc Ventures, Samsung Next and What If Ventures. www.affecttherapeutics.com

• Xterio, a Swiss web3 game platform and publisher, raised $15m from Binance Labs. https://axios.link/3XQQ1zF

• Alluvial, an Ethereum staking company, raised $12m. Ethereal Ventures and Variant co-led, and were joined by Brevan Howard Digital, Coinbase Ventures, Kraken and Avon Ventures. https://axios.link/3Oa9M1N

• RightRev, a Santa Clara, Calif.-based cloud-based finance and accounting startup, raised $12m in funding. Norwest Venture Partners and Salesforce Ventures co-led, and were joined by Correlation Ventures and Idea Fund Partners. https://axios.link/43jjvqV

• Hepster, a German embedded insurance startup, raised €10m from Element Ventures, Seventure Partners and Claret Capital Partners. https://axios.link/3NNDOaf

• Trunk Tools, a New York-based fintech for construction workers, raised $9.9m in seed funding, per Axios Pro. Innovation Endeavors led, and was joined by Fifth Wall and Foundation Capital. https://axios.link/3pE4en3

🚑 Eureka Health, an SF-based community for chronic disease patients, raised $7m in seed funding. Khosla Ventures led, and was joined by South Park Commons, Bling Capital, SciFi VC, Able Partners and Bow Capital. https://axios.link/3rvYBrf

• CapStack, an operating system for banks, raised $6m. Fin Capital led, and was joined by Alloy Labs, Cambrian Ventures, Cowboy Ventures, Future Perfect Ventures, Gaingels, Selah Ventures, Uncorrelated Ventures and Valor Equity Partners. https://axios.link/43mDFQX

🚑 Fold Health, an SF-based tech startup focused on outcome-based primary care, raised $6m from Iron Pillar. www.fold.health

• Revolear, an SF-based B2B deals platform, raised $6m in seed funding from co-founders of Veeva and Vlocity. https://axios.link/3XRhEbQ

• Cove, a no-code trust and safety platform, raised $5.8m in seed funding. Thrive Capital led, and was joined by Sound Ventures, Common Sense Growth, Neo, Elad Gil and Scott Forstall. www.getcove.com

• Sigo Seguros, an Austin, Texas-based insurtech startup for immigrants, raised $5.1m in pre-Series A funding. Zeal Capital Partners and Listen Ventures co-led, and were joined by Chingona Ventures, Revolution's Rise of the Rest, Fiat Ventures and Remarkable Ventures. https://axios.link/44IiOIM

• Finres, a Paris-based agriculture investing platform, raised €4.1m. Speedinvest led, and was joined by Illuminate Financial Management, AFI Ventures, Kima Ventures, Plug & Play, Raise Sherpas, Tiny VC and Better Angle. https://axios.link/44chdex

• Bring It On, a developer of skill games, raised $4m in seed funding. Acies Investments led, and was joined by Kona Venture Partners, MGVC, Overwolf and Lalotte Ventures. www.bringiton.games

• KTX, a Singaporean decentralized perpetuals exchange, raised $4m in seed funding led by Hashed. www.ktx.finance

• Pylon, a McLean, Va.-based real-time customer support platform, raised $3.2m in seed funding led by General Catalyst. www.usepylon.com

🚑 Gradia Health, a concierge health care startup, raised $4.2m in seed funding. MaC Venture Capital led, and was joined by YC, Soma Capital and Atlanta Ventures. https://axios.link/3Oa3i2V

• Inngest, an SF-based code automation platform, raised $3m in seed funding led by GGV. https://axios.link/44ns19H

🚑 Hello Pediatrics, a Fairfax, Va.-based virtual pediatric practice, raised $3m in Series B funding co-led by Sequoia Health Strategies and Dialectic Capital. https://axios.link/3PRAfm4

• OneStack, an Indian maker of tech for cooperative banks and credit societies, raised $2m from GrowX, Stride Ventures, 9Unicorns and Venture Catalyst. https://axios.link/3O8wS9a

• CapVest Partners agreed to acquire Kerridge Commercial Systems, a British provider of ERP software for distribution, serving and rental businesses, from Accel-KKR. https://axios.link/3JVwOqE

🍔 Carlyle and Trustar Capital are in talks to sell part of their stake in the Hong Kong and mainland China operations of McDonald’s, via a $4b sale to GIC and Mubadala, per Bloomberg. https://axios.link/44LnUEn

• Exponent invested in TestingCo, a Dutch software testing platform.

• Falfurrias Capital Partners acquired a majority stake in Executive Platforms, a Toronto-based business executive events organizer. https://axios.link/3rtSyn5

• GEM Manufacturing, a Waterbury, Conn.-based portfolio company of Core Industrial Partners, acquired Coining Manufacturing and Precision Machine Products, Clifton, N.J.-based providers of specialty stamping and machining services. www.gemmfg.com

• Genspring acquired Bradford Soap International, a West Warwick, R.I.-based maker of beauty and personal care products. www.bradfordsoap.com

• ProcessUnity, a Concord, Mass.-based portfolio company of Marlin Equity Partners, acquired CyberGRX, a Denver-based provider of cyber risk management solutions. www.processunity.com

• Stone-Goff Partners invested in BigScoots, a Chicago-based provider of managed web hosting solutions. www.bigscoots.com

• Wildcat Capital Management, the family office of TPG co-founder David Bonderman, is opposing a $2.9b takeover offer for Consolidated Communications Holdings (Nasdaq: CNSL), in which Wildcat holds a 2.6% stake, from Searchlight Capital Partners and British Columbia Investment Management Corp. https://axios.link/46Q80dt

• Bowen Acquisition, a SPAC led by Na Gai (Shenzhen Guoxing Capital), raised $60m in its IPO. https://axios.link/3O9n9yj

⚡ BlackRock and KKR are nearing a $4b+ sale of their 40% stake in Adnoc Oil Pipelines to ADQ, per Bloomberg. https://axios.link/3pOMCEX

• Cinven is weighing an early 2024 sale process for its stake in British wealth manager True Potential, which it acquired last year, per Reuters. https://axios.link/3pEkpRf

• Savvy Games, owned by Saudi Arabia's sovereign wealth fund, completed its $4.9b acquisition of Scopely, a Culver City, Calif.-based maker of mobile games like Marvel Strike Force, Monopoly GO and Scrabble GO.

• Scopely had raised nearly $1 billion in VC funding from backers like Greycroft, Evolution Media Capital, Highland Capital Partners, Anthem Venture Partners, Sands Capital, Cross Creek. Revolution, Pritzker Group VC, NewView Capital, Scale-Up Venture Capital, Carbon Arrow Capital, and Wellington.

• Caledonia Investments (LSE: CLDN) is seeking a buyer for wealth manager 7IM, which could fetch between £400m and £450m, per Reuters. https://axios.link/44K4hMD

• CQS, a British hedge fund manager led by Michael Hintze, is considering selling part of its asset management business, per Bloomberg. https://axios.link/3rtZa55

• Gen II Fund Services agreed to buy Crestbridge, a U.K.-based provider of private capital fund administration solutions. www.crestbridge.com

• HCL Technology, an Indian IT services firm, agreed to buy German auto engineering services provider ASAP Group for $280m. https://axios.link/3DePAWp

• Meratus, an Indonesian logistics and marine shipping firm, is seeking a buyer for around $2b, per Bloomberg. https://axios.link/3pMM4zj

• Monster Beverage Corp. (Nasdaq: MNST) received U.S. bankruptcy court approval to buy rival energy drink maker Bang Energy for $362m. https://axios.link/3JX40Ov

• PSA International, owned by Temasek, ended plans to sell its 20% stake in the ports business of Hong Kong’s CK Hutchinson, for which it was seeking around $4b, per Bloomberg. https://axios.link/46PqhYG

⚽ Saudi Prince Abdullah bin Musaid Al Saud is seeking a buyer for Premier League club Sheffield United, which could fetch £170m, per Bloomberg. https://axios.link/3PRTHz0

• Swiggy, an Indian food delivery firm valued by VCs last year at $10.7b, agreed to buy Indian retail logistics startup LYNK. https://axios.link/3rvXAzr

Source: Giphy

• Coca-Cola (NYSE: KO) and eight bottling partners launched a $137.7m VC fund focused on sustainability investments, with VC firm Greycroft serving as manager. www.coca-colacompany.com

• Morgenthaler Private Equity, based in Cleveland and Boston, raised $633m for its fourth fund. www.mpepartners.com

• North Branch Capital, an Oak Brook, Ill.-based PE firm, raised $213m for its second fund. www.northbranchcap.com

• RCP Advisors raised $797m for its fourth PE secondaries opportunities fund. https://axios.link/46Psm6W

• SineWave Ventures raised $160m for its third fund. https://axios.link/3XRP3mT

• Spring Lane Capital, a Boston-based sustainable infrastructure investor, raised $290m for its second fund. www.springlanecapital.com

• Suffolk Technologies, a Boston-based VC firm affiliated with construction company Suffolk, raised $110m for its debut fund. www.suffolk-tech.com

🚑 Daniel Cohen stepped down as head of health care services banking at Truist Financial to join Morgan Stanley, per Reuters. https://axios.link/3pDIFmx

• Crossbeam Venture Partners promoted Ryan Morgan to partner. www.crossbeam.vc

• Tim Franks is leaving KKR, where he led U.K./Ireland private equity and European consumer private equity. https://axios.link/46JEB4L

• Wells Fargo hired SF-based M&A bankers Tom Drake (ex-Barclays) and Chris Norman (Citi), per Bloomberg. https://axios.link/3pPUqWX