Ranger Energy Services: Bridging Public & Private Markets

In August of 2017, CSL Capital, a private equity fund founded and operated by Charlie Leykum (HBS'04), was deciding to take one of its portfolio companies, Ranger Energy Services, public. Founded in 2014, Ranger Energy was an oilfield service company providing high-spec rig services to E&P customers. With 150% growth in top line and improving margin performance over the last two years, Ranger was still generating negative net income and hence Leykum was worried if public markets would be able to understand Ranger's business strategy and value the business fairly. How can investors value a growth business like Ranger fairly? What are the advantages and disadvantages of taking a company public? How can investors assess whether Ranger Energy would continue to be a top performer in the high-spec rig market? Students are encouraged to decide as to whether they agree with CSL's strategy of taking Ranger public or should they have explored other means of raising growth capital.