Persistent Cash BurnConsistent negative operating and free cash flow erodes liquidity and forces reliance on asset realizations, equity or external funding. Over months this raises funding risk, constrains reinvestment, and makes the firm vulnerable if realizations or capital raises are delayed or market conditions tighten.
Volatile Operating PerformanceHistoric volatility and dependence on non-operating/fair-value items reduce earnings predictability and the reliability of reported profits. For medium-term fundamental analysis, this lowers confidence in sustainable margins and complicates forecasting of recurring fee revenue and operating cash generation.
Very Small Operating ScaleA tiny headcount and limited operating scale can restrict operational redundancy, business development capacity, and internal controls. Combined with cash deficits, small scale increases execution risk, dependency on third-party servicing and portfolio disposals, and limits scalability over the medium term.