Brookfield Oaktree Holdings, LLC

Previous wording

The ongoing Russia-Ukraine conflict, including global sanctions imposed on Russia, conflict in the Middle East, and changes in trade policies of the United States and other countries, including the imposition of tariffs and retaliatory tariffs, create continued uncertainty and volatility in the global financial markets and economy and, as a result, may adversely impact Oaktree’s businesses and its funds’ and their respective portfolio companies’ business. As of the date of this filing, we are not aware of any material risk to the stability of our condensed consolidated financial statements caused by the Russia-Ukraine conflict, the conflict in the Middle East or changes in U.S. and global trade policies, or the materiality of any effect such uncertainties may have on our business and operations.

Current wording

The ongoing Russia-Ukraine conflict, including global sanctions imposed on Russia, conflict in the Middle East, and changes in trade policies of the United States and other countries, including the imposition of tariffs and retaliatory tariffs, create continued uncertainty and volatility in the global financial markets and economy and, as a result, may adversely impact Oaktree’s businesses and its funds’ and their respective portfolio companies’ business.

Previous wording

There has been significant recent progress and developments in the area of generative artificial intelligence, such as ChatGPT, but the impact to our business of such evolving technology cannot be fully determined at this time.

Current wording

There has been significant recent progress and developments in the area of generative artificial intelligence, but the impact to our business of such evolving technology cannot be fully determined at this time.

Previous wording

We earn revenue from investment income, which represents our pro-rata share of income or loss from our investments. Historically, investment income was generally from Oaktree Capital I’s capacity as general partner in Oaktree funds and as an investor in Oaktree’s CLOs and third-party managed funds and companies. Subsequent to the 2024 Restructuring, we no longer earn investment income from the direct fund-related holdings of Oaktree Capital I. Rather the economics resulting from Oaktree Capital I’s investments are reflected in the Company’s investment income earned from the Company’s equity method investment in Oaktree Capital I, which as of September 30, 2025, represented an approximately 74% interest in Oaktree Capital I.

Current wording

We earn revenue from investment income, which represents our pro-rata share of income or loss from our investments, including the Company’s equity method investment in Oaktree Capital I and its indirect ownership in Brookfield REIT. As of March 31, 2026, the Company had an approximately 74% economic interest in Oaktree Capital I.

Previous wording

Subsequent to the 2022 Restructuring, general and administrative expenses generally included costs related tooutside auditors, tax professionals, derivative and hedging activity, and other general items related directly to the Company’s operations. Subsequent to the 2024 Restructuring and deconsolidation of Oaktree Capital I, the Company no longer directly incurs costs related to derivative and hedging activity.

Current wording

Compensation primarily reflects compensation to the Company’s board of directors. General and administrative expenses include costs related to outside auditors, tax professionals, and other general items related directly to the Company’s operations.

Previous wording

Interest expense has historically primarily reflected the interest expense of the consolidated funds, as well as the interest expense of Oaktree and its operating subsidiaries. Subsequent to the 2022 Restructuring, our financial statements reflected debt obligations, interest expense or related liabilities associated with our operating subsidiary when Oaktree Capital I directly borrowed under Oaktree’s credit agreements, issued private placement notes or entered into another debt arrangement. Subsequent to the 2024 Restructuring, as a result of the deconsolidation of Oaktree Capital I, the Company no longer records interest expense for debt obligations of Oaktree Capital I or funds that were consolidated due to interests held by Oaktree Capital I.

Current wording

Interest expense has historically primarily reflected the interest expense of the consolidated funds.

Previous wording

•Net Income Attributable to Non-controlling Interests in Consolidated Funds. This category represents the economic interests of the unaffiliated investors in the consolidated funds. The net income of these interests is primarily driven by the investment performance of the consolidated funds. In comparison to net income, this measure excludes our operating results and other items solely attributable to the Company. Following the 2024 Restructuring, with the deconsolidation of Oaktree Capital I, we no longer reflect the economic interest owned by other investors in the funds consolidated by Oaktree Capital I as noncontrolling interests; and,

Current wording

•Net Income Attributable to Non-controlling Interests in Consolidated Funds. This category represents the economic interests of the unaffiliated investors in the consolidated funds. The net income of these interests is primarily driven by the investment performance of the consolidated funds. In comparison to net income, this measure excludes our operating results and other items solely attributable to the Company; and,

Previous wording

•Net Income Attributable to Non-controlling Interests in Consolidated Subsidiaries. This category primarily represents the economic interest in the Oaktree Operating Group owned by OCGH and OEP (“OCGH and other non-controlling interest”), as well as the economic interest in certain consolidated subsidiaries held by third parties. Subsequent to the 2022 Restructuring, this category included only the OCGH and other non-controlling interest in Oaktree Capital I. The OCGH and other non-controlling interest was determined at the Oaktree Operating Group level based on the weighted average proportionate share of Oaktree Operating Group units held by OCGH and other unitholders. Inasmuch as the number of outstanding Oaktree Operating Group units corresponded with the total number of outstanding Class A, OCGH and OEP units, changes in the economic interest held by the OCGH and other unitholders were driven by additional issuances of our Class A units and driven by additional issuances of OCGH and OEP units, as well as repurchases and forfeitures of, and exchanges between, Class A, OCGH and OEP units. Certain of our expenses, such as income tax and related administrative expenses of BOH and the holding companies through which we hold interests in Oaktree Capital I, were solely attributable to the Class A unitholders. Please see note 10 to our condensed consolidated financial statements included elsewhere in this quarterly report for additional information on the economic interest in the Oaktree Operating Group owned by OCGH. Subsequent to the 2024 Restructuring, we no longer reflect the economic interest owned by OCGH and OEP as noncontrolling interests.

Current wording

•Net Income Attributable to Non-controlling Interests in Consolidated Subsidiaries. This category primarily represents the economic interest in certain consolidated subsidiaries held by third parties. Certain of our expenses, such as income tax and related administrative expenses of Brookfield Oaktree Holdings, LLC and the holding companies through which we hold interests in Oaktree Capital I, were solely attributable to the Class A unitholders.

Previous wording

Third Quarter Ended September 30, 2025 Compared to the Third Quarter Ended September 30, 2024

Current wording

First Quarter Ended March 31, 2026 Compared to the First Quarter Ended March 31, 2025

Previous wording

Consolidated fund expenses decreased $3.4 million, or 17.3%, to $16.2 million for the third quarter of 2025, from $19.6 million for the third quarter of 2024. The decrease is primarily due to lower general costs incurred by Opps XI.

Current wording

Consolidated fund expenses decreased $5.3 million, or 19.9%, to $21.4 million for the first quarter of 2026, from $26.7 million for the first quarter of 2025. The decrease is primarily due to lower general costs incurred by Opps XII.

Previous wording

Net realized gain on consolidated funds’ investments decreased $1.2 million, or 3.7%, to $31.3 million for the third quarter of 2025 from $32.5 million for the third quarter of 2024 . The net realized gain during the third quarter of 2025 reflects our consolidated funds’ performance on investments sold and the decrease is primarily due to Opps XI.

Current wording

Net realized gain (loss) on consolidated funds’ investments decreased $98.6 million, to a loss of $24.0 million for the first quarter of 2026, from a gain of $74.6 million for the first quarter of 2025. The net realized loss during the first quarter of 2026 reflects our consolidated funds’ performance on investments sold and the decline is primarily due to Opps XI.

Previous wording

Net change in unrealized appreciation (depreciation) on consolidated funds’ investments decreased $29.1 million, or 55.4%, to a gain of $23.4 million for the third quarter of 2025, from a gain of $52.5 million for the third quarter of 2024. Excluding the impact of the reversal of net realized gain (loss) on consolidated funds’ investments, the net change in unrealized appreciation (depreciation) on consolidated funds’ investments decreased $30.3 million, to a net gain of $54.7 million for the third quarter of 2025, from a net gain of $85.0 million for the third quarter of 2024, primarily resulting from our investment in Opps XI.

Current wording

The net change in unrealized appreciation (depreciation) on consolidated funds’ investments increased $209.3 million, to a gain of $81.5 million for the first quarter of 2026, from a loss of $127.8 million for the first quarter of 2025. Excluding the impact of the reversal of net realized gain (loss) on consolidated funds’ investments, the net change in unrealized appreciation (depreciation) on consolidated funds’ investments increased $110.8 million, to a net gain of $57.5 million for the first quarter of 2026, from a net loss of $53.3 million for the first quarter of 2025, primarily resulting from our investments in Opps XI.

Previous wording

Net income attributable to non-controlling interests in consolidated funds decreased $24.8 million, or 17.8%, to $114.6 million for the third quarter of 2025, from $139.4 million for the third quarter of 2024. The decrease reflected our consolidated funds’ performance attributable to third-party investors in each period. These effects are described in more detail under “—Other Income (Loss)” above.

Current wording

Net income attributable to non-controlling interests in consolidated funds increased $56.3 million, to net income of $87.8 million for the first quarter of 2026, from net income of $31.5 million for the first quarter of 2025. The increase reflected our consolidated funds’ performance attributable to third-party investors in each period. These effects are described in more detail under “—Other Income (Loss)” above.

Previous wording

Net income (loss) attributable to Brookfield Oaktree Holdings, LLC Class A unitholders decreased $88.9 million, or 58.7%, to $62.6 million for the first nine months of 2025, from $151.5 million for the first nine months of 2024, primarily reflecting unrealized investment losses. These effects are described in more detail under “— Net Change in Unrealized Appreciation (Depreciation) on Consolidated Funds’ Investment” above.

Current wording

Net income attributable to Brookfield Oaktree Holdings, LLC Class A unitholders increased $44.2 million, to net income of $32.4 million for the first quarter of 2026, from a loss of $11.8 million for the first quarter of 2025, primarily reflecting unrealized investment gains. These effects are described in more detail under “—Net Change in Unrealized Appreciation (Depreciation) on Consolidated Funds’ Investments” above.

Previous wording

We manage our financial condition without the consolidation of the Oaktree funds. Since Oaktree’s founding, Oaktree and, by extension, we have managed our financial condition in a way that builds our capital base and maintains sufficient liquidity for known and anticipated uses of cash.

Current wording

We manage our financial condition without the consolidation of the Oaktree funds.

Previous wording

We manage our liquidity and capital requirements by focusing on our cash flows before the consolidation of Oaktree funds and the effect of normal changes in short-term assets and liabilities. Prior to the 2024 Restructuring, our primary cash flow activities on an unconsolidated basis involved (a) generating cash flow from operations, (b) generating realized income and return of principal from investment activities, including strategic investments in certain third parties, (c) funding capital commitments that we have made to Oaktree funds, (d) funding our growth initiatives, (e) distributing cash flow to our Class A unitholders and to OCGH and OEP, (f) borrowings, interest payments and repayments under credit agreements, our senior notes and other borrowing arrangements, and (g) issuances of, and distributions made on, our preferred units. Subsequent to the 2024 Restructuring, our primary cash flow activities on an unconsolidated basis involve (a) generating realized income and return of principal from investment activities, (b) funding capital commitments that we have made to Oaktree funds, (c) distributing cash flow to our Class A unitholders, (d) issuances of, and distributions made on, our preferred units, and (e) equity contribution from the investors of the Company to fulfill certain contractual capital commitments to its subsidiaries. As of September 30, 2025, the Company on an unconsolidated basis had $8.6 million of cash and cash equivalents.

Current wording

We manage our liquidity and capital requirements by focusing on our cash flows before the consolidation of Oaktree funds and the effect of normal changes in short-term assets and liabilities. Our primary cash flow activities on an unconsolidated basis involve (a) generating realized income and return of principal from investment activities, (b) funding capital commitments that we have made to Oaktree funds, (c) distributing cash flow to our Class A unitholders, (d) issuances of, and distributions made on, our preferred units, and (e) equity contribution from the investors of the Company to fulfill certain contractual capital commitments to its subsidiaries. As of March 31, 2026, the Company on an unconsolidated basis had $1.9 million of cash and cash equivalents.

Previous wording

Ongoing sources of cash include distributions from our equity method corporate investments. We primarily use distributions from our corporate investments to pay compensation and related expenses, service fees under the Services Agreement with OCM and distributions. Subject to applicable law and certain consent rights contained in our operating agreement, pursuant to a covenant in our operating agreement Oaktree plans to cause its operating group entities to distribute, on a quarterly basis, at least 85% of its adjusted distributable earnings, as defined in our operating agreement, and we plan to distribute amounts we receive in respect of such distributions, less any tax and tax receivable obligations, to holders of our Class A units. Distributions from each Oaktree Operating Group entity may not be proportionate to its share of adjusted distributable earnings.

Current wording

Ongoing sources of cash include distributions from our equity method corporate investments. We primarily use distributions from our corporate investments to pay compensation and related expenses, service fees under the Services Agreement with OCM and distributions.

Previous wording

We have subscribed for a limited partner interest in, and made a capital commitment of, $750 million to Oaktree Opportunities Fund XI, L.P., a parallel investment vehicle thereof or a feeder fund in respect of one of the foregoing (such limited partner interest, the “Opps XI Investment” and such fund entities collectively, “Opps XI”). In order to fund the Opps XI Investment, our sole Class A unitholder, or one of its affiliates, will contribute cash as a capital contribution (the “Opps XI Investment Cash”) as and to the extent required to satisfy our obligations to Opps XI. We will use the Opps XI Investment Cash solely to fund the Opps XI Investment and satisfy our obligations in respect of Opps XI. Distributions from the Opps XI Investment are intended for the benefit of the Class A unitholder, subject to applicable law. Our preferred unitholders should not rely on distributions received by us in respect of the Company’s Opps XI Investment for payment of distributions on or redemption of the preferred units. As of September 30, 2025, $637.5 million of the $750.0 million capital commitment was funded. $360.2 million of the investment interest was pledged as collateral for two non-recourse credit facilities of an affiliate. The potential exposure is limited to the pledged interests.

Current wording

We have subscribed for a limited partner interest in, and made a capital commitment of, $750 million to Oaktree Opportunities Fund XI, L.P., a parallel investment vehicle thereof or a feeder fund in respect of one of the foregoing (such limited partner interest, the “Opps XI Investment” and such fund entities collectively, “Opps XI”). In order to fund the Opps XI Investment, our sole Class A unitholder, or one of its affiliates, will contribute cash as a capital contribution (the “Opps XI Investment Cash”) as and to the extent required to satisfy our obligations to Opps XI. We will use the Opps XI Investment Cash solely to fund the Opps XI Investment and satisfy our obligations in respect of Opps XI. Distributions from the Opps XI Investment are intended for the benefit of the Class A unitholder, subject to applicable law. Our preferred unitholders should not rely on distributions received by us in respect of the Company’s Opps XI Investment for payment of distributions on or redemption of the preferred units. As of March 31, 2026, $637.5 million of the $750.0 million capital commitment was funded. $353.4 million of the investment interest was pledged as collateral for two non-recourse credit facilities of an affiliate. The potential exposure is limited to the pledged interests.

Previous wording

We have subscribed for a limited partner interest in, and made a capital commitment of, $796.2 million to Oaktree Opportunities Fund XII, L.P., a parallel investment vehicle thereof or a feeder fund in respect of one of the foregoing (such limited partner interest, the “Opps XII Investment” and such fund entities collectively, “Opps XII”). In order to fund the Opps XII Investment, our sole Class A unitholder, or one of its affiliates, will contribute cash as a capital contribution (the “Opps XII Investment Cash”) as and to the extent required to satisfy our obligations to Opps XII. We will use the Opps XII Investment Cash solely to fund the Opps XII Investment and satisfy our obligations in respect of Opps XII. Distributions from the Opps XII Investment are intended for the benefit of the Class A unitholder, subject to applicable law. Our preferred unitholders should not rely on distributions received by us in respect of the Company’s Opps XII Investment for payment of distributions on or redemption of the preferred units. As of September 30, 2025, the Company has funded in the aggregate $218.9 million of the $796.2 million capital commitment. $102.0 million of the investment interest was pledged as collateral for one non-recourse credit facilities of an affiliate. The potential exposure is limited to the pledged interests.

Current wording

We have subscribed for a limited partner interest in, and made a capital commitment of, $750 million to Oaktree Opportunities Fund XII, L.P., a parallel investment vehicle thereof or a feeder fund in respect of one of the foregoing (such limited partner interest, the “Opps XII Investment” and such fund entities collectively, “Opps XII”). In order to fund the Opps XII Investment, our sole Class A unitholder, or one of its affiliates, will contribute cash as a capital contribution (the “Opps XII Investment Cash”) as and to the extent required to satisfy our obligations to Opps XII. We will use the Opps XII Investment Cash solely to fund the Opps XII Investment and satisfy our obligations in respect of Opps XII. Distributions from the Opps XII Investment are intended for the benefit of the Class A unitholder, subject to applicable law. Our preferred unitholders should not rely on distributions received by us in respect of the Company’s Opps XII Investment for payment of distributions on or redemption of the preferred units. As of March 31, 2026, the Company has funded in the aggregate $278.7 million of the $796.2 million capital commitment. $102.0 million of the investment interest was pledged as collateral for one non-recourse credit facility of an affiliate. The potential exposure is limited to the pledged interests.

Previous wording

As of September 30, 2025, the carrying value of the REIT Entities included in corporate investments was $306.7 million.

Current wording

As of March 31, 2026, the carrying value of the REIT Entities included in corporate investments was $315.9 million.

Previous wording

Because our consolidated funds are either treated as investment companies for accounting purposes or represent CLOs whose primary operations are investing activities, their investing cash flow amounts are included in our cash flows from operations. We believe that we and each of the consolidated funds has sufficient access to cash to fund our and their respective operations in the near term. Subsequent to the 2022 Restructuring, the Company no longer consolidates CLOs whose direct ownership interests are held by OCM Cayman. As a result of the 2024 Restructuring, the Company no longer consolidates Oaktree Capital I, and the cash inflows and outflows related to Oaktree Capital I are now presented under the investing activities of the Company’s cash flow.

Current wording

Because our consolidated funds are either treated as investment companies for accounting purposes or represent CLOs whose primary operations are investing activities, their investing cash flow amounts are included in our cash flows from operations. We believe that we and each of the consolidated funds has sufficient access to cash to fund our and their respective operations in the near term. Subsequent to the 2022 Restructuring, the Company no longer consolidates CLOs whose direct ownership interests are held by OCM Cayman.

Previous wording

Significant amounts from our condensed consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024 are discussed below.

Current wording

Significant amounts from our condensed consolidated statements of cash flows for the three months ended March 31, 2026 and 2025 are discussed below.

Previous wording

Operating activities provided $543.7 million and used $508.6 million of cash for the first nine months of 2025 and 2024, respectively. These amounts principally reflected net income, net of non-cash adjustments, net realized and unrealized (gain) loss from consolidated fund investments in each of the respective periods as well as net purchases of, or proceeds from, securities of the consolidated funds.

Current wording

Operating activities used $212.9 million and provided $277.7 million of cash for the first three months of 2026 and 2025, respectively. These amounts primarily reflected net income (loss), purchases of securities, net of non-cash adjustments, net realized and unrealized (gain) loss from consolidated fund investments in each of the respective periods as well as net purchases of, or proceeds from, securities of the consolidated funds.

Previous wording

Financing activities used $768.2 million and provided $871.5 million of cash for the first nine months of 2025 and 2024, respectively, and included: (a) net distributions to non-controlling interests of $156.6 million and $127.8 million, respectively; (b) distributions to unitholders of $428.8 million and $314.3 million, respectively; (c) net capital contributions of $119.4 million and $37.2 million, respectively; and (d) payments of debt issuance costs of $0.0 million and $3.4 million, respectively. Additionally, the first nine months of 2025 and 2024 included borrowings of $963.1 million and $2.2 billion, respectively, and $1.3 billion and $907.7 million of repayments, respectively, related to consolidated funds.

Current wording

Financing activities provided $326.8 million and used $117.4 million of cash for the first three months of 2026 and 2025, respectively. These amounts included (a) net contributions from non-controlling interests of $230.8 million and net distributions to non-controlling interests of $81.8 million; (b) distributions to unitholders of $10.7 million and $174.8 million; and (c) net capital contributions of $59.7 million and $39.8 million. Additionally, the first three months of 2026 and 2025 included borrowings of $345.4 million and $470.7 million, respectively, and repayments of $298.5 million and $371.4 million, respectively, related to consolidated funds.

Previous wording

We expect to continue to make distributions to our preferred unitholders in accordance with their contractual terms and our Class A unitholders pursuant to our distribution policy for our common units as described in our operating agreement. In the future, subject to our operating agreement we may also issue additional units or debt and other equity securities with the objective of increasing our available capital. In addition, we may, from time to time, repurchase our preferred units in open market or privately negotiated purchases or otherwise, redeem our preferred units pursuant to the terms of their respective governing documents, or repurchase OCGH or OEP units. The distributions from our corporate investments, including the distributions from the equity investment in Oaktree Capital I, also provide the Company with ongoing cash inflow.

Current wording

We expect to continue to make distributions to our preferred unitholders in accordance with their contractual terms and our Class A unitholders pursuant to our distribution policy for our common units as described in our operating agreement. In the future, subject to our operating agreement we may also issue additional units or debt and other equity securities with the objective of increasing our available capital. In addition, we may, from time to time, repurchase our preferred units in open market or privately negotiated purchases or otherwise, redeem our preferred units pursuant to the terms of their respective governing documents, or repurchase OCGH, OEP or OEP II units. The distributions from our corporate investments, including the distributions from the equity investment in Oaktree Capital I, also provide the Company with ongoing cash inflow.