AI and War Spook Buyers for Private-Equity Firms Itching to Sell

Private equity sales have fallen by more than a third this year, as developments in artificial intelligence and war in Iran heap pressure on a subdued exit market.

Buyout firms were sellers in deals valued at about $103 billion in the first quarter, data compiled by Bloomberg show. Though still above historical averages, the figure is roughly 36% lower than the same period a year ago and stands out in an M&A market flushwith megadeals.

It’s a blow for private equity firms eager to shift a backlog of portfolio companies, return money to impatient investors and start fundraising. High ...