Inconsistent Cash GenerationRepeated negative operating and free cash flow across several years undermines liquidity resilience. For an investment vehicle, this means fees and follow-on commitments may rely on asset disposals or capital raises, increasing execution risk and potentially forcing sales at inopportune times.
Multi-Year Result VolatilityLarge swings in profits, losses and revenue across years weaken predictability of NAV and investor returns. Volatility can reflect concentrated positions or timing-dependent exits, increasing the chance of material drawdowns and complicating planning for distributions or capital allocation over the medium term.
Reliance On Unrealised Gains And ExitsDependence on fair-value uplifts and exit events creates inherently lumpy, market-dependent returns. Illiquidity of private holdings and timing risk for IPOs or trade sales mean cash outcomes and shareholder value are sensitive to exit market conditions, lengthening realization timelines and adding structural uncertainty.