Iris Running Crane-Case Recommendation

Case written recommendation assignment

Case title: Iris Running Crane

Overview

Iris Running Crane is a MBA student in Harvard Business School who has interest in private equity industry. After interviewed by multiple companies, she finally received three offers.

Questions

Iris Running Crane has to think about these positons based on the strengths and weaknesses and give the final decision from three offers.

Recommendation

Given situations and compensations of three companies and the experience of Iris Running Crane, I encourage Iris Running Crane to take the offer from Red Horse Partners. My reasons are below.

First, the historical performance of these three companies in recent five years showed that funds in Red Horse Partners made two big return, with beating top funds of the industry. However, other two companies’ funds unreached the median level return in 2006. Although other two companies made great performance before 2000, the private equity industry after Internet bubbles became more difficult on fund raising and making profit. Therefore, recent five years’ performance should take big part of historical return when estimating funds.

Second, Iris has working experience on cleantech, which enable her to perform more professional and to start easier in Red Horse Partners, comparing with involving in other two companies. Apart from cleantech experience, she also has debt negotiation and operation experience in financial services, which enable her to help Red Horse Partners to handle structuring field and operation field.

Third, the compensation and potential promotion in Red Horse Partners are more attractive than others. Although, the basic salary of Lepus capital is high, Red Horse Partners offered an annual-increase policy of carry package. This policy plays an important role if Iris will engage in Red Horse Partners in long term. In the short term, the future promotion is clear. She was told when the cleantech practice got going, she will become a principal. This clear target enables her to put more energy on her work.