TUESDAY, JUNE 20, 2023

© 2023 Dow Jones & Company, Inc. All Rights Reserved.

WSJ NEWS EXCLUSIVE | FUND NEWS

Wellington Banks at Least $2.6 Billion
for Growth Investment Strategy
The firm collected its latest Hadley Harbor pool as well as $200 million for co-investments to take advantage
of depressed late-stage startup values
By Isaac Taylor
Investment manager Wellington
Management has amassed at least $2.6billion for its strategy to back latestage startups, and said it has commitments of more than $200 million forco-investments.
The latest Hadley Harbor vehicle,
Wellington Hadley Harbor Partners IV, provides the Boston firm withfresh ammunition to take advantage
of depressed valuations of late-stage
startups after higher interest rates
pushed up financing costs and the market
for new equity issues froze last year.
“Today, we’re seeing a tremendous
correction in valuation,” said Michael
Carmen, the firm’s co-head of private
investments.
“What we’re really excited aboutright now is being in the position ofhaving a lot of dry powder that we caninvest [at] much better valuations, andwe’re seeing materially less competition for the deals that we’re lookingat,” Carmen said.
Despite a diff icult market for
raising new funds, investors embraced
Wellington’s latest growth vehicle.
The amount raised over the past
year exceeded the firm’s $2.5 billion
fundraising target for the new pool,according to Wellington executives.
The new money brings Wellington’s
total capital raised for the growthstrategy to more than $6 billion since2014, including the more than $200
million in new co-investment commitments, which can amplify the firm’sbuying power as an investor. Investments in the new fund came from public
and private pension plans, insurers,a sovereign-wealth fund and family
offices, according to a news release.
Wellington succeeded in its fundraising campaign as fundraising forboth late-stage venture and growthequity funds has slowed dramatically.
Venture firms collected just $1.95
billion for nine such funds this year
through June 14, well off pace from the$16.94 billion that 42 funds collectedduring all of 2022, according to data
provider Preqin. Meanwhile, just 59growth equity funds have amassed onlyaround $41.89 billion through June 14,
a pace that, if continued, would fallshort of the $104.17 billion raised by 185
funds in 2022, Preqin data show.
Wellington, which traces its roots
to 1928, uses the new fund to backlate-stage startups looking to sustain
or accelerate growth before an initialpublic offering or outright sale. Under
the strategy, the firm invests in thetechnology, consumer, healthcare andfinancial services sectors.
The firm has made six deals out of
the new Hadley Harbor fund so far,including backing SeatGeek late lastyear through participation in a $238
million investment round. SeatGeekprovides a mobile ticketing service

commonly used for concerts andsporting events. In 2021, the company
agreed to go public by combining withspecial-purpose acquisition company
RedBall Acquisition Corp., but terminated that plan about a year ago toremain private longer.
Wellington has so far closed at least
four Hadley Harbor growth funds sinceembarking on the strategy in 2014. The
firm amassed $2.2 billion in 2020 for
its third fund in the series, which alsoincluded co-investment capital. Thatsame year, it tapped that fund to co-lead
a $90 million investment in Patreon, acompany that allows fans to make financial contributions to content creators.
At the end of last year, Wellington
managed more than $1.16 trillion
for institutional investors including
pensions, endowments, family offices
and global wealth managers, according
to a March regulatory filing. The firm
advises more than 2,400 clients oninvestments.
Wellington has more than 1,000
investment professionals across asset
classes worldwide, including morethan 40 on its private investing platform. The firm has raised nearly $8billion to invest through the teamacross Asia, Europe and the Americas.
© 2023 Dow Jones & Co. Inc.
Licensed Use: Post to corporate site
Licensed to: Wellington Management
Expiration Date: 06/21/2024

The Publisher ’ s Sale Of This Reprint Does Not Constitute Or Imply Any Endorsement Or Sponsorship Of Any Product, Service, Company Or Organization.
Custom Reprints 800.803.9100 www.djreprints.com DO NOT EDIT OR ALTER REPRINT/REPRODUCTIONS NOT PERMITTED 2399973