Brookfield Oaktree Holdings, LLC

Previous wording

Brookfield Oaktree Holdings, LLC holds Credit, Real Estate and Equity investments managed by leading alternative asset management firms Oaktree Capital Management, L.P. and Brookfield Asset Management Ltd. The Company both directly invests in funds and has indirect exposure through its equity method investment in Oaktree Capital I, L.P. (“Oaktree Capital I”), which as of March 31, 2026, represented an approximately 74% economic interest in Oaktree Capital I, which holds a majorityof Oaktree’s investments in its funds.

Current wording

Brookfield Oaktree Holdings, LLC holds Credit, Equity and Real Estate investments managed by leading alternative asset management firms Oaktree Capital Management, L.P. and, prior to April 20, 2026, Brookfield Asset Management Ltd. The Company both directly invests in funds and has indirect exposure through its equity method investment in Oaktree Capital I, L.P. (“Oaktree Capital I”), which holds a majorityof Oaktree’s investments in its funds.

Previous wording

Brookfield Oaktree Holdings, LLC is a Delaware limited liability company that was formed on April 13, 2007 under the name Oaktree Capital Group, LLC. The Company’s ownership and operational structure through March 31, 2026 are the result of certain mergers and restructurings. The Company’s holdings and operations currently primarily represent (i) limited partner investments in certain of Oaktree’s flagship opportunistic credit funds, (ii) its equity method investment in Oaktree Capital I, whichas of March 31, 2026, represented an approximately 74% economic interest in Oaktree Capital I, which holds a majority of Oaktree’s investments in its funds, and (iii) an indirect ownership interest in Brookfield Real Estate Income Trust Inc. (“Brookfield REIT”). The Company is the issuer of the Series A and Series B preferred units listed on the NYSE.

Current wording

Brookfield Oaktree Holdings, LLC is a Delaware limited liability company that was formed on April 13, 2007 under the name Oaktree Capital Group, LLC. The Company’s ownership and operational structure through June 30, 2026 are the result of certain mergers and restructurings. The Company’s holdings and operations primarily represent (i) limited partner investments in certain of Oaktree’s flagship opportunistic credit funds and (ii) its equity method investment in Oaktree Capital I, which holds a majority of Oaktree’s investments in its funds. Prior to April 20, 2026, the Company’s holdings also included an indirect ownership interest in Brookfield Real Estate Income Trust Inc. (“Brookfield REIT”). On April 20, 2026, the Company distributed its 100% equity interest in OCG NTR Holdings, LLC (“NTR”) to Brookfield Oaktree Holdings Canada Inc. (“BOHCI”). As a result, the Company no longer has an indirect ownership interest in Brookfield REIT.

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.

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. 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.

Previous 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.

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. Prior to April 20, 2026, investment income also included income or loss from the Company’s indirect ownership in Brookfield REIT.

Previous wording

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

Current wording

Second Quarter Ended June 30, 2026 Compared to the Second Quarter Ended June 30, 2025

Previous wording

Investment income increased $25.7 million, or 524.5%, to a gain of $20.8 million for the first quarter of 2026, from a loss of $4.9 million for the first quarter of 2025, primarily reflecting the performance of Oaktree Capital I and Brookfield REIT.

Current wording

Investment income increased $11.9 million, or 136.8%, to $20.6 million for the second quarter of 2026, from $8.7 million for the second quarter of 2025, primarily reflecting the performance of Oaktree Capital I.

Previous wording

General and administrative expense decreased $0.3 million, or 33.3%, to $0.6 million for the first quarter of 2026, from $0.9 million for the first quarter of 2025, primarily driven by lower accounting fees.

Current wording

General and administrative expense decreased $0.6 million, or 42.9%, to $0.8 million for the second quarter of 2026, compared to an expense of $1.4 million for the second quarter of 2025, primarily driven by lower accounting fees.

Previous 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.

Current wording

Consolidated fund expenses decreased $4.6 million, or 20.4%, to $17.9 million for the second quarter of 2026, from $22.5 million for the second quarter of 2025. The decrease is primarily due to lower general costs incurred by Opps XI.

Previous 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.

Current wording

Net realized gain on consolidated funds’ investments increased $69.4 million, from a net gain of $0.6 million for the second quarter of 2025 to $70.0 million for the second quarter of 2026. The net realized gain during the second quarter of 2026 reflects our consolidated funds’ performance on investments sold and the increase is primarily due to Opps XI.

Previous 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.

Current wording

Net change in unrealized appreciation (depreciation) on consolidated funds’ investments increased $51.3 million, to a gain of $38.8 million for the second quarter of 2026, from a loss of $12.5 million for the second 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 $120.8 million, to a net gain of $108.9 million for the second quarter of 2026, from a net loss of $11.9 million for the second quarter of 2025, primarily resulting from our investments in Opps XI and Opps XII.

Previous 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.

Current wording

Net income attributable to non-controlling interests in consolidated funds increased $60.0 million, to $105.1 million for the second quarter of 2026, from $45.1 million for the second 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 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.

Current wording

Net income attributable to Brookfield Oaktree Holdings, LLC Class A unitholders increased $34.3 million, to $49.0 million for the second quarter of 2026, from $14.7 million for the second 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

Interest expense decreased $14.6 million, or 42.8%, to $19.5 million for the first quarter of 2026, from $34.1 million for the first quarter of 2025, primarily due to lower debt balances and interest rates at Opps XII.

Current wording

Interest expense decreased $12.8 million, or 24.5%, to $39.5 million for the first six months of 2026, from $52.3 million for the first six months of 2025, primarily due to lower interest rates at Opps XII.

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. 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.

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 June 30, 2026, the Company on an unconsolidated basis had $11.6 million of cash and cash equivalents.

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 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.

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 June 30, 2026, $637.5 million of the $750.0 million capital commitment was funded. $329.4 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, $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.

Current 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 June 30, 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

On June 27, 2023, the Company entered into a contribution agreement (the “Treasury Contribution Agreement”) with Brookfield Corporate Treasury Ltd. (“Treasury”). Treasury holds all of the outstanding Class A units of the Company. Pursuant to the Treasury Contribution Agreement, Treasury agreed to contribute to the Company an amount (the “Contributed Amount”) equal to the value of BUSI II GP-C LLC, BUSI II-C L.P., BUSI II SLP-GP LLC and Brookfield REIT OP Special Limited Partner L.P. (collectively, and together with any additional entities that may become direct or indirect subsidiaries of NTR (as defined below) and that beneficially own shares of Brookfield REIT (as defined below), the “REIT Entities”), including their indirect ownership in Brookfield Real Estate Income Trust Inc., a Maryland corporation (“Brookfield REIT”), as of June 30, 2023, and the Company agreed to contribute the Contributed Amount to OCG NTR Holdings, LLC, a wholly owned subsidiary of the Company (“NTR”), in connection with the Company’s indirect acquisition (the “Acquisition”) of 100% of the interests in the REIT Entities. An amount of $307.0 million in respect of the Contributed Amount was contributed to the Company on June 27, 2023 (the “Purchase Price”) and a true-up contribution of $13.9 million was made on July 31, 2023 (the “True-Up Payment”). Also on June 27, 2023, the Company entered into a contribution agreement (the “NTR Contribution Agreement”) with NTR whereby the Company contributed the Purchase Price to NTR and agreed to make a contribution in an amount equal to the True-Up Payment to NTR, and NTR agreed to use the Contributed Amount in connection with the Acquisition. On June 29, 2023, NTR entered into an agreement of purchase and sale (the “Agreement of Purchase and Sale”) to effect the Acquisition, whereby NTR acquired 100% of the interests in the REIT Entities from BUSI II NTR Sub LLC in exchange for cash. The Acquisition was completed on June 30, 2023.

Current wording

On June 27, 2023, the Company entered into a contribution agreement (the “Treasury Contribution Agreement”) with Brookfield Corporate Treasury Ltd. (“Treasury”). Treasury holds all of the outstanding Class A units of the Company. Pursuant to the Treasury Contribution Agreement, Treasury agreed to contribute to the Company an amount (the “Contributed Amount”) equal to the value of BUSI II GP-C LLC, BUSI II-C L.P., BUSI II SLP-GP LLC and Brookfield REIT OP Special Limited Partner L.P. (collectively, and together with any additional entities that may become direct or indirect subsidiaries of NTR and that beneficially own shares of Brookfield REIT, the “REIT Entities”), including their indirect ownership in Brookfield Real Estate Income Trust Inc., a Maryland corporation (“Brookfield REIT”), as of June 30, 2023, and the Company agreed to contribute the Contributed Amount to OCG NTR Holdings, LLC, a wholly owned subsidiary of the Company (“NTR”), in connection with the Company’s indirect acquisition (the “Acquisition”) of 100% of the interests in the REIT Entities. An amount of $307.0 million in respect of the Contributed Amount was contributed to the Company on June 27, 2023 (the “Purchase Price”) and a true-up contribution of $13.9 million was made on July 31, 2023 (the “True-Up Payment”). Also on June 27, 2023, the Company entered into a contribution agreement (the “NTR Contribution Agreement”) with NTR whereby the Company contributed the Purchase Price to NTR and agreed to make a contribution in an amount equal to the True-Up Payment to NTR, and NTR agreed to use the Contributed Amount in connection with the Acquisition. On June 29, 2023, NTR entered into an agreement of purchase and sale (the “Agreement of Purchase and Sale”) to effect the Acquisition, whereby NTR acquired 100% of the interests in the REIT Entities from BUSI II NTR Sub LLC in exchange for cash. The Acquisition was completed on June 30, 2023.

Previous wording

In connection with the Acquisition, on June 29, 2023, the Company entered into a letter agreement (the “Restructuring Letter Agreement”) with Treasury whereby, among other things, the Company agreed that, notwithstanding any provision of the operating agreement of the Company to the contrary, Treasury will have the right, in its sole and absolute discretion, to make up to $200.0 million of additional capital contributions to the Company to be utilized in connection with the Company’s indirect ownership of Brookfield REIT or any other matters with respect to the operations of NTR and the REIT Entities, and no vote, approval or other authorization will be required in connection with such additional capital contributions. Also on June 29, 2023, the Company entered into a letter agreement (the “Indemnification Letter Agreement”) with BP US REIT LLC (“BP US”) whereby, among other things, BP US agrees to defend, indemnify and hold harmless the Company, its members and the Company’s and such members’ respective officers, directors, employees, agents, successors, and assigns from any third-party claims brought against any of them related to the ownership, management or ongoing operating of the REIT Entities, and any subsidiaries thereof.

Current wording

In connection with the Acquisition, on June 29, 2023, the Company entered into a letter agreement (the “Restructuring Letter Agreement”) with Treasury whereby, among other things, the Company agreed that, notwithstanding any provision of the operating agreement of the Company to the contrary, Treasury will have the right, in its sole and absolute discretion, to make up to $200.0 million of additional capital contributions to the Company to be utilized in connection with the Company’s then-indirect ownership of Brookfield REIT or any other matters with respect to the operations of NTR and the REIT Entities, and no vote, approval or other authorization will be required in connection with such additional capital contributions. Also on June 29, 2023, the Company entered into a letter agreement (the “Indemnification Letter Agreement”) with BP US REIT LLC (“BP US”) whereby, among other things, BP US agrees to defend, indemnify and hold harmless the Company, its members and the Company’s and such members’ respective officers, directors, employees, agents, successors, and assigns from any third-party claims brought against any of them related to the ownership, management or ongoing operating of the REIT Entities, and any subsidiaries thereof.

Previous wording

On April 20, 2026, the Company entered into a distribution agreement with Brookfield Oaktree Holdings Canada Inc. (“BOHCI”) pursuant to which the Company distributed to BOHCI 100 Common Shares of OCG NTR Holdings LLC (“NTR”) representing 100% of the Company’s equity interests in NTR, through a distribution in kind in respect of the Class A common units of BOH. Please see note 16 to our condensed consolidated financial statements included elsewhere in this quarterly report for information regarding the distribution agreement.

Current wording

On April 20, 2026, the Company entered into a distribution agreement with BOHCI, pursuant to which the Company distributed to BOHCI 100 Common Shares of NTR, representing 100% of the Company’s equity interests in NTR, through a distribution in kind in respect of the Class A common units of BOH, on the terms and conditions of the Distribution Agreement. The distribution of the Distributed Shares was completed on April 20, 2026. As a result of the distribution, the Company no longer held an investment in NTR as of June 30, 2026. See Item 1.01 of the Company’s Current Report on Form 8-K filed with the SEC on April 27, 2026 for more information about the Distribution Agreement.

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.

Current wording

Because our consolidated funds are treated as investment companies for accounting purposes, 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.

Previous wording

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

Current wording

Significant amounts from our condensed consolidated statements of cash flows for the six months ended June 30, 2026 and 2025 are discussed below.

Previous 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.

Current wording

Operating activities used $164.5 million and provided $540.0 million of cash for the first six 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

Investing activities provided $3.5 million and $2.5 million of cash for the first three months of 2026 and 2025, respectively. These amounts primarily reflected distributions and proceeds from corporate investments in funds and companies. respectively.

Current wording

Investing activities provided $3.5 million and $49.4 million of cash for the first six months of 2026 and 2025, respectively. These amounts primarily reflected distributions and proceeds from corporate investments in funds and companies.

Previous 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.

Current wording

Financing activities provided $223.2 million and used $751.4 million of cash for the first six months of 2026 and 2025, respectively, and included: (a) net contribution from non-controlling interests of $38.6 million and net distribution from non-controlling interests of $41.2 million; (b) distributions to unitholders of $54.7 million and $355.0 million; and (c) net capital contributions of $59.7 million and $119.4 million, respectively. Additionally, the first six months of 2026 and 2025 included borrowings of $599.5 million and $545.6 million, respectively, and $420.0 million and $1,020.3 million of repayments, respectively, related to consolidated funds.