High LeverageMaterial leverage raises structural risk: higher interest obligations and tighter covenant exposure can limit strategic flexibility, increase refinancing risk in stressed markets, and amplify earnings volatility if margins compress or cash flow weakens.
Cash Flow Volatility RiskDespite recent FCF growth, historical cash flow variability undermines predictability for debt servicing, capex, and distributions. Recurring volatility can force defensive capital allocation, hinder multi-year planning, and raise cost of capital over time.
Revenue Sensitivity To AUM And Real Estate CyclesBusiness model dependence on AUM fees and exposure to real estate-related assets creates structural cyclicality: sustained AUM declines or sector downturns reduce recurring fees, pressure revenue and profitability, and constrain long-term growth visibility.