Private Credit Jitters, AI Disruption Raise Hurdles for Private-Equity Deals -- Market Talk

Dow Jones03-25 22:00

1400 GMT - Financial sponsors like private-equity groups faced a challenging environment to pursue deals in the first quarter due to private credit market jitters and scrutiny on the impact of AI on their investments, data provider Mergermarket says. Investment activity from financial sponsors declined 14% on year to $143 billion in the first quarter to date, according to Mergermarket. Meanwhile, exit activity dropped 29% to $112.4 billion, Mergermarket says. Moreover, Middle East sovereign-wealth funds have participated in several big-ticket private-equity deals over the past year and the war in Iran raises the question of whether that will continue to be the case, Mergermarket says. (adria.calatayud@wsj.com)

 

(END) Dow Jones Newswires

March 25, 2026 10:00 ET (14:00 GMT)

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