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

Year: 2025

Type: article

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

Source: Entrepreneurship Theory and Practice

DOI: 10.1177/10422587251385536

Authors: Ranko Jelic, Xinyu Yu, Dan Zhou

Institutions: University of Sussex, University of Surrey, University of Reading

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,900