Why is lease accounting more challenging for private equity firms?

Lease accounting is more complex in private equity because each portfolio company uses different systems, policies, and reporting processes. This creates consolidation difficulties, increases compliance risks, and slows ASC 842 or IFRS 16 reporting.

How can private equity firms improve multi-entity lease consolidation?

Private equity firms can improve multi-entity consolidation by centralizing lease data into a single platform that standardizes reporting, validates entries automatically, and provides real-time visibility across all subsidiaries. This removes manual reconciliations and reduces errors.

What are the risks of managing lease accounting with spreadsheets?

Using spreadsheets increases the risk of data inconsistencies, version control issues, delayed closes, inaccurate calculations, and audit findings. It slows decision-making and makes ASC 842 compliance harder to maintain across a private equity portfolio.

How does centralized lease accounting help with ASC 842 compliance?

Centralized lease accounting systems enforce consistent accounting policies across subsidiaries, automate ROU asset and liability calculations, and maintain accurate journal entries. This shortens close cycles and provides audit-ready documentation.

What features should private equity firms look for in a lease accounting system?

Private equity firms should look for features such as multi-entity capabilities, automated calculations, real-time consolidated reporting, ASC 842/IFRS 16 compliance tools, complete audit trails, ERP integrations, and flexible control levels for subsidiaries and the parent firm.

CASE STUDIES

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From midsize corporations to the Fortune 500, finance teams use Black Owl to run their close. Lessee or lessor, simple or complex, it’s in one system. Here are their stories and where they are today.

PATTISON AGRICULTURE

AGRICULTURE IFRS 16 ENTERPRISE

Multi-entity portfolio. One platform. Audit-ready at close.

“Black Owl gave us a system we could actually trust at close. The team understood our portfolio from day one.”

Pattison Agriculture

FLAIR AIRLINES

AVIATION IFRS 16 ENTERPRISE

IFRS 16 compliant. Close on time. Every month.

“Flair Airlines is live on Black Owl, supporting IFRS 16 lease accounting as Flair continues to grow.”

Flair Airlines

PRIVATE EQUITY FIRM

PRIVATE EQUITY ASC 842 MID-MARKET

14 operating companies. Errors eliminated. Month-end back.

“We historically had errors and inconsistencies in our lease data which has been fully eliminated now that we’re automated with Black Owl.”

Verified — Private Equity

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CASE STUDIES