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Private Equity Diversity and Talent: Do They Matter for Acquisitive Growth?

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  • Ranko Jelic
  • Xinyu Yu
  • Dan Zhou

Abstract

Building on the strategic entrepreneurship perspective and upper echelon theory, we examine the importance of private equity (PE) functional human capital and socio-demographic diversity for the success of the acquisitive growth strategy. Our focus is on the buyout lead partner team rather than on human capital at the collective PE firm (or fund) level. The results of our panel data survival models suggest that gender and age diversity, as well as the financial background, significantly accelerate both first and subsequent add-on acquisitions. The results are robust to alternative proxies, model specifications, and endogeneity checks. JEL Codes: G24, G34, J10, L26

Suggested Citation

  • Ranko Jelic & Xinyu Yu & Dan Zhou, 2026. "Private Equity Diversity and Talent: Do They Matter for Acquisitive Growth?," Entrepreneurship Theory and Practice, , vol. 50(3), pages 671-721, May.
    • Handle: RePEc:sae:entthe:v:50:y:2026:i:3:p:671-721
    DOI: 10.1177/10422587251385536
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    Keywords

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    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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