An alternative investment firm is conducting due diligence on a new real estate fund that focuses on distressed properties. The firm aims to assess various key elements of the fund's strategy, performance history, risk profile, and management capabilities before deciding to allocate capital.

During the due diligence process, the firm encounters a situation where the fund manager has delivered exceptional past performance; however, they also notice several operational inconsistencies and lack of transparent communication regarding risk management practices. Furthermore, the fund focuses heavily on leveraging fixed-income strategies to capitalize on real estate value fluctuations.

Considering these factors, what is the most critical aspect the firm should address when concluding their due diligence?