Risks of Financial Close Delays
January 20, 2026
by a professional from Tulane University - A. B. Freeman School of Business in Portland, ME, USA
We compressed close from 25 days to 5 days.
It wasn't technology. Here's how:
The closing process was:
-Day 15 financials.
-Day 20 board packs.
-Day 25 if anyone asked questions.
By the time our team saw the numbers,
many problems were already baked in.
Here's what slow close costs PE firms:
→ 3-4 week decision lag
turns small issues into portfolio fires
→ Reactive management instead of
proactive value creation across holdings
→ Capital allocation delay when
you're flying blind on current performance
The portcos with 5-day close?
They surface anomalies while you can still fix them.
They give board-level visibility when it matters.
They let you deploy capital based on real data,
not stale forecasts.
Your move today:
Ask your fastest-closing portco what changed
when they compressed their cycle.
Then pressure-test that playbook across your portfolio.
Because the firms driving
25%+ IRR aren't better at picking deals.
They're better at seeing problems early.