"They're both very nurturing people and are very, very happy together and to be starting a family," the insider told PEOPLE.

Now, it looks like Davidson is following Mulaney’s example in another way — by becoming a father.

According to the source, the Wicked star “doesn’t know Elsie,” but “she believes that Pete becoming a father is the exact thing that he needs in his life and that he will be a great dad.”