Persistent Negative Cash GenerationConsistent OCF and FCF deficits undermine long-term sustainability by eroding liquidity and forcing reliance on non-operating funding or asset sales. Persistent cash burn constrains reinvestment, distributions, and resiliency without a structural change to cash conversion.
Highly Volatile EarningsWide swings between strong profit years and deep losses create forecasting and execution challenges. Volatility erodes return on equity consistency, complicates capital allocation, and weakens stakeholder confidence in the firm's ability to deliver stable, repeatable earnings.
Declining Revenue TrendMaterial negative revenue growth reduces scale and fee-generating capacity for an asset manager, limiting operating leverage and margin sustainability. Continued top-line contraction pressures profitability and exacerbates the firm's reliance on capital buffers to cover fixed costs.