Brookfield Asset Management Ltd.

Previous wording

We offer a range of alternative investment products to over 2,500 institutional clients around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors which also continues to grow with approximately 60,000 clients. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them. Our deep operating expertise, global reach and access to large-scale flexible capital enable us to identify attractive investment opportunities and make investments on a proprietary basis in sizable, premier assets and businesses across geographies and asset classes that we believe few others can.

Current wording

We offer a range of alternative investment products to over 2,500 institutional clients around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors which also continues to grow with approximately 69,000 clients. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them. Our deep operating expertise, global reach and access to large-scale flexible capital enable us to identify attractive investment opportunities and make investments on a proprietary basis in sizable, premier assets and businesses across geographies and asset classes that we believe few others can.

Previous wording

In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 1.3% for the quarter ended March 31, 2026, compared to an increase of 0.5% for the quarter ended December 31, 2025. U.S. inflation increased to 3.3% as of March 31, 2026, compared to 2.7% as of December 31, 2025. The U.S. unemployment rate saw a modest decrease to 4.3% in March 2026 from 4.5% in December 2025. As of April 2026, the International Monetary Fund projected U.S. real GDP growth of 2.5% in 2026 and 2.2% in 2027, compared with 2.1% in 2025, while noting continued uncertainty related to inflation, energy prices, geopolitical developments, trade tensions and the pace of artificial-intelligence-related productivity gains.

Current wording

In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 1.7% for the quarter ended June 30, 2026, compared to an increase of 2.1% for the quarter ended March 31, 2026. U.S. inflation accelerated over the second quarter of 2026 with estimates reporting that the annual U.S. inflation rate increased to 3.5% as of June 30, 2026, compared to 3.3% as of March 31, 2026. The U.S. unemployment rate saw a modest movement to 4.2% in June 2026 from 4.3% in March 2026, according to data from the U.S. Bureau of Labor Statistics. As of July 2026, the International Monetary Fund estimated that the U.S. economy will move modestly to 2.3% in 2026 and 2.2% in 2027 from 2.0% in 2025, on account of the solid consumer demand and continued AI related investments.

Previous wording

Outside the U.S., GDP growth in the Eurozone remained subdued over the first quarter of 2026, with ECB indicators pointing to continued but modest expansion early in the year, albeit with a weaker outlook due to energy shocks and heightened uncertainty. The European Central Bank kept its key deposit rate unchanged over the quarter, following a series of cuts beginning in mid-2025, while maintaining a cautious, data-dependent stance amid persistent services inflation and geopolitical uncertainty. In China, real GDP is estimated to have grown by 4.8% for the quarter ended March 31, 2026, up from 4.5% in the last quarter of 2025, driven by strong exports and early-year policy support. The 1-year prime rate set by the People's Bank of China was 3.00% as of March 31, 2026, unchanged from December 31, 2025.

Current wording

Outside the U.S., GDP growth in the Eurozone remained subdued over the second quarter of 2026, with activity proving resilient but modest amid elevated geopolitical uncertainty and higher energy prices. At its June meeting, the European Central Bank raised its three key policy rates by 25 basis points, bringing the deposit facility rate to 2.25%, in response to increased inflationary pressures stemming primarily from the recent energy price shock. In China, real GDP slowed to 4.3% for the quarter ended June 30, 2026, down from 5.0% in the first quarter of 2026, as robust export growth was offset by weak domestic demand. The 1-year prime rate set by the People's Bank of China was 3.00% as of June 30, 2026, unchanged from March 31 2026.

Previous wording

For the quarter ended March 31, 2026, the S&P 500 was down by 4.6%, the MSCI Europe Index was down 1.6%, the MSCI Asia Index was down 0.6%, and the MSCI World Index decreased by 3.9%. During the quarter ended March 31, 2026, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) widened by 11 basis points, and the high yield credit spreads were up by 44 basis points.

Current wording

For the quarter ended June 30, 2026, the S&P 500 was up by 14.9%, the MSCI Europe Index was up by 9.2%, the MSCI Asia Index was up 21.0%, and the MSCI World Index increased by 13.3%. During the quarter ended June 30, 2026, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) tightened by 14 basis points, and the high yield credit spreads were down by 71 basis points.

Previous wording

Includes Oaktree employees that will become BAM employees following the completion of the Oaktree Acquisition and approximately 1,500 fully-dedicated Brookfield operating employees, that are integral to the business, including individuals focused on our core investment strategies and those undertaking various corporate activities.

Current wording

Includes Oaktree employees that have become BAM employees following the completion of the Oaktree Acquisition and approximately 1,500 fully-dedicated Brookfield operating employees, that are integral to the business, including individuals focused on our core investment strategies and those undertaking various corporate activities.

Previous wording

•We are one of the world’s largest investment managers in infrastructure, with $255 billion of AUM and $109 billion of Fee-Bearing Capital as of March 31, 2026.

Current wording

•We are one of the world’s largest investment managers in infrastructure, with $262 billion of AUM and $114 billion of Fee-Bearing Capital as of June 30, 2026.

Previous wording

•We manage Brookfield Infrastructure Partners L.P. (“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $28.5 billion as of March 31, 2026.

Current wording

•We manage Brookfield Infrastructure Partners L.P. (“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $29.3 billion as of June 30, 2026.

Previous wording

•We are one of the largest investors in energy investments, with $142 billion of AUM and $72 billion of Fee-Bearing Capital as of March 31, 2026.

Current wording

•We are one of the largest investors in energy investments, with $144 billion of AUM and $74 billion of Fee-Bearing Capital as of June 30, 2026.

Previous wording

•We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $23.1 billion as of March 31, 2026.

Current wording

•We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $24.4 billion as of June 30, 2026.

Previous wording

•Distributed energy and storage, which provides small-scale generation that can be locally installed, pump storage facilities, and battery energy storage systems;

Current wording

•Distributed energy and storage, which provides small-scale generation that can be locally installed, and pump storage facilities;

Previous wording

•We have one of the best long-term track records for investing in private equity with $160 billion of AUM and $48 billion of Fee-Bearing Capital as of March 31, 2026.

Current wording

•We have one of the best long-term track records for investing in private equity with $166 billion of AUM and $54 billion of Fee-Bearing Capital as of June 30, 2026.

Previous wording

•Our thematic private equity strategy, Brookfield Financial Infrastructure Partners, focuses on investments in asset-light financial infrastructure companies that underpin the global financial system.

Current wording

•Our thematic private equity strategy, Brookfield Financial Infrastructure Partners ("BFIP"), focuses on investments in asset-light financial infrastructure companies that underpin the global financial system.

Previous wording

•We manage Brookfield Business Corporation (“BBUC”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBUC is listed on the NYSE and TSX and had a market capitalization of $7.0 billion as of March 31, 2026.

Current wording

•We manage Brookfield Business Corporation (“BBUC”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBUC is listed on the NYSE and TSX and had a market capitalization of $6.8 billion as of June 30, 2026.

Previous wording

•Leading service providers to large-scale infrastructure assets, including a leading provider of work access services, modular building leasing services, and a leading global provider of lottery services and technology solutions;

Current wording

•Leading service providers to large-scale infrastructure assets, including a provider of work access services, modular building leasing services, and a global provider of lottery services and technology solutions;

Previous wording

•Operationally intense industrial businesses that benefit from a strong competitive position, including a leading global provider of advanced automotive battery technology, a leading global aviation services and leasing business, and a leading manufacturer of engineered components for industrial trailers and other towable equipment providers, among others; and

Current wording

•Operationally intense industrial businesses that benefit from a strong competitive position, including a leading global provider of advanced automotive battery technology, and a manufacturer of engineered components for industrial trailers and other towable equipment providers, among others; and

Previous wording

•Essential services providers, including the largest private sector residential mortgage insurer in Canada, a leading value-add distributor of telecom equipment, a leading provider of software to automotive dealers, one of the largest private school operators globally, and a leading American private education company.

Current wording

•Leading essential services providers, including the largest private sector residential mortgage insurer in Canada, one of the largest private school operators globally, and an American private education company.

Previous wording

•We are one of the world’s largest investment managers in real estate, with over $277 billion of AUM and $103 billion of Fee-Bearing Capital as of March 31, 2026.

Current wording

•We are one of the world’s largest investment managers in real estate, with over $280 billion of AUM and $104 billion of Fee-Bearing Capital as of June 30, 2026.

Previous wording

•We manage $20 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of March 31, 2026, which we invest, on behalf of BN, directly in real estate assets. BPG owns, operates, and develops iconic properties in the world’s most dynamic markets with a global portfolio of retail, multifamily, logistics, office, hospitality, land and housing, triple net lease, manufactured housing, and student housing assets on five continents.

Current wording

•We manage $19 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of June 30, 2026, which we invest, on behalf of BN, directly in real estate assets. BPG owns, operates, and develops iconic properties in the world’s most dynamic markets with a global portfolio of retail, multifamily, logistics, office, hospitality, land and housing, triple net lease, manufactured housing, and student housing assets on five continents.

Previous wording

•We are one of the world’s largest and most experienced credit managers, with $365 billion of AUM and $282 billion of Fee-Bearing Capital as of March 31, 2026.

Current wording

•We are one of the world’s largest and most experienced credit managers, with $416 billion of AUM and $326 billion of Fee-Bearing Capital as of June 30, 2026.

Previous wording

•We have approximately 1,800 investment and asset management professionals globally, including Oaktree employees that will become BAM employees following completion of the Oaktree Acquisition, that are focused on our credit strategies, investing across a broad spectrum of investments, leveraging the capabilities we have organically built in collaboration with the capabilities of leading credit managers with whom we partner. Our partner managers where we have significant non-controlling ownership stakes include:

Current wording

•We have approximately 1,800 investment and asset management professionals globally that are focused on our credit strategies, including former Oaktree employees who joined Brookfield following completion of the Oaktree Acquisition. These professionals invest across a broad spectrum of credit strategies, combining capabilities we have built organically with those of the leading credit managers with whom we partner. Our partner managers where we have significant non-controlling ownership stakes include:

Previous wording

The following table summarizes the condensed consolidated statements of operations for BAM for the three months ended March 31, 2026 and 2025:

Current wording

The following table summarizes the condensed consolidated statements of operations for BAM for the three and six months ended June 30, 2026 and 2025:

Previous wording

Net income for the three months ended March 31, 2026 was $586 million, of which $617 million was attributable to common stockholders. This compares to net income of $507 million for the three months ended March 31, 2025, of which $581 million was attributable to common stockholders.

Current wording

Net income for the three months ended June 30, 2026 was $1.2 billion, of which $904 million was attributable to common stockholders. This compares to net income of $584 million for the three months ended June 30, 2025, of which $620 million was attributable to common stockholders.

Previous wording

Revenues for the three months ended March 31, 2026 were $1.3 billion, which represents an increase of $257 million or 24% compared to $1.1 billion of revenue for the three months ended March 31, 2025.

Current wording

Revenues for the three months ended June 30, 2026 were $1.8 billion, which represents an increase of $663 million or 61% compared to $1.1 billion of revenue for the three months ended June 30, 2025.

Previous wording

Base management and advisory fees for the three months ended March 31, 2026 were $860 million, which represents an increase of $23 million or 3% compared to the three months ended March 31, 2025. Management fee revenues increased by $44 million from a higher trading price of BIP, BEP, and BBUC. In addition, the increase was driven by $15 million attributable to fundraising for our infrastructure and energy perpetual strategies, $11 million attributable to growth of our mandate with BWS, and $8 million from capital raised for the second vintage of our global transition flagship fund. These increases were partially offset by $63 million of catch-up fees earned from the fifth vintage of our real estate flagship fund in the prior period, as well as $19 million of lower fees from as a result of realizations from earlier vintages of our real estate flagship and certain infrastructure funds. The remaining increase was attributable to fundraising and growth across various long-term private funds and complementary strategies.

Current wording

Base management and advisory fees for the three months ended June 30, 2026 were $919 million, which represents an increase of $104 million or 13% compared to the three months ended June 30, 2025. Management fee revenues increased by $34 million from higher trading prices of BIP, BEP, and BBUC. In addition, fee revenues increased by $35 million from net insurance capital inflows from BWS and $27 million attributable to inflows from our infrastructure and energy perpetual strategies. The remaining increase was attributable to fundraising and capital deployments across various long-term private funds and complementary strategies. These increases were partially offset by $19 million of lower fees as a result of realizations from earlier vintages of our flagship real estate and infrastructure funds.

Previous wording

Incentive fees for the three months ended March 31, 2026, were $130 million, an increase of $13 million or 11% from the three months ended March 31, 2025. This increase was a result of an increase in BEP and BIP's quarterly dividend over the prior period of 5% and 6% respectively.

Current wording

Incentive fees for the three months ended June 30, 2026, were $128 million, an increase of $12 million or 10% from the three months ended June 30, 2025. This increase was a result of an increase in BEP and BIP's quarterly distributions over the prior period of 5% and 6% respectively.

Previous wording

The unrealized carried interest allocations of $96 million for the three months ended March 31, 2026 represents an increase of $94 million compared to the three months ended March 31, 2025. The gross increase of $128 million compared to the prior year reflects changes in fund valuations associated with the first and second vintages of our global transition flagship fund for $33 million, various private equity fund strategies, including the sixth vintage of our private equity flagship fund, for $60 million, and various earlier vintages of our real estate flagship funds for $25 million. This was partially offset by a $32 million decrease primarily driven by lower unrealized carried interest generated in the fifth vintage of our infrastructure flagship fund relative to the prior period.

Current wording

The unrealized carried interest allocations of $553 million for the three months ended June 30, 2026 represents an increase of $616 million compared to the three months ended June 30, 2025. This increase is due to changes in fund valuations associated with the first and second vintages of our global transition flagship fund for $261 million, various private equity fund strategies for $121 million, and $21 million in the fifth vintage of our infrastructure flagship fund relative to the prior period. In addition, certain real estate other long-term funds saw increases of $39 million, and a $177 million increase related to unrealized carried interest losses recognized in the prior period on earlier vintages of our flagship real estate funds. This was partially offset by $8 million in lower unrealized carried interest generated in the sixth vintage of our private equity flagship fund.

Previous wording

Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the condensed consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM were $141 million for the three months ended March 31, 2026, compared to $86 million for the three months ended March 31, 2025.

Current wording

Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the condensed consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net (income) loss attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM were $387 million for the three months ended June 30, 2026, compared to $94 million for the three months ended June 30, 2025.

Previous wording

Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were $98 million, which represents an increase of $20 million compared to the three months ended March 31, 2025. This increase was driven by higher operating costs from our growing business and one-time adjustments related to the 2025 Arrangement in the prior period.

Current wording

Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses for the three months ended June 30, 2026 were $118 million, which represents an increase of $36 million compared to the three months ended June 30, 2025. This increase was driven by higher operating costs from our growing business.

Previous wording

Interest expense for three months ended March 31, 2026 was $37 million, which represents an increase of $34 million compared to the three months ended March 31, 2025. This was primarily driven by BAM's increased borrowings from our debt offerings relative to the prior period.

Current wording

Interest expense for three months ended June 30, 2026 was $53 million, which represents an increase of $22 million compared to the three months ended June 30, 2025. This was primarily driven by BAM's increased borrowings from our debt offerings relative to the prior period.

Previous wording

Other income, net of consolidated funds for the three months ended March 31, 2026 was $11 million compared to $14 million in the prior year. The decrease is mainly driven by the fair value changes of investments held by BPE, BMEP and BSI II in which BAM holds a sufficient interest to require the consolidation of the funds.

Current wording

Other income, net of consolidated funds for the three months ended June 30, 2026 was $70 million compared to $13 million in the prior period. BAM holds a sufficient interest to require the consolidation of BPE, BMEP, BSI II, and BREVA-H. The increase is mainly driven by the fair value changes of investments held by BPE and BMEP which were newly consolidated funds compared to the prior period.

Previous wording

Income tax expense was $110 million for the three months ended March 31, 2026, which represents an increase of $35 million compared to the three months ended March 31, 2025. The increase in income tax expense was predominantly driven by a higher taxable income compared to the prior period.

Current wording

Income tax expense was $162 million for the three months ended June 30, 2026, which represents an increase of $87 million compared to the three months ended June 30, 2025. The increase in income tax expense was predominantly driven by a higher taxable income compared to the prior period.

Previous wording

Net loss attributable to redeemable non-controlling interest in consolidated funds reflects net income or loss generated by the respective fund that is allocated to non-controlling interest based on the substantive contractual terms of the funds governing agreements that specify the allocation of income or loss, such as fees allocable to BAM. Net loss attributable to redeemable non-controlling interest in consolidated funds was $6 million for the three months ended March 31, 2026.

Current wording

Net income attributable to redeemable non-controlling interest in consolidated funds reflects net income or loss generated by the respective fund that is allocated to non-controlling interest based on the substantive contractual terms of the funds governing agreements that specify the allocation of income or loss, such as fees allocable to BAM. Net income attributable to redeemable non-controlling interest in consolidated funds was $30 million for the three months ended June 30, 2026.

Previous wording

Net income attributable to non-controlling interest in consolidated entities was $69 million for the three months ended March 31, 2026. BAM recognizes carried interest allocations on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest allocations are attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the year.

Current wording

Net income attributable to non-controlling interest in consolidated entities was $201 million for the three months ended June 30, 2026. BAM recognizes carried interest allocations on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest allocations are attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the period.

Previous wording

For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income or losses earned is attributable to other parties invested in the funds. Net loss attributable to non-controlling interest of consolidated funds was $5 million for the three months ended March 31, 2026.

Current wording

For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income or losses earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $21 million for the three months ended June 30, 2026.

Previous wording

Realized carried interest allocations were $16 million for the three months ended March 31, 2026, which were predominantly due to dispositions within certain private equity fund strategies.

Current wording

Realized carried interest allocations were $16 million for the six months ended June 30, 2026, which were predominantly due to dispositions within certain private equity fund strategies.

Previous wording

Interest and dividend revenue for the three months ended March 31, 2026 was $21 million, which represents an increase of $8 million compared to the three months ended March 31, 2025. The increase was primarily due to higher interest income earned on our deposit with BN.

Current wording

Interest and dividend revenue for the six months ended June 30, 2026 was $48 million, which represents an increase of $1 million compared to the six months ended June 30, 2025. The increase in interest and dividend revenue was primarily attributable to higher interest income earned on our deposit with BN, partially offset by lower interest revenue following the sale of the GEMS investment to our consolidated fund BPE.

Previous wording

Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Services Agreement, fund expense recharges, and incentive management fees earned on certain funds. Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Other revenues were $207 million for the three months ended March 31, 2026, an increase of $102 million compared to the three months ended March 31, 2025. The increase was primarily attributable to higher recoveries of $79 million related to share and performance-based compensation, as a result of newly issued share based compensation awards that are recoverable as well as the modification of BN DSU awards during the period.

Current wording

Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Services Agreement, fund expense recharges, and incentive management fees earned on certain funds. Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Other revenues were $324 million for the six months ended June 30, 2026, an increase of $39 million compared to the six months ended June 30, 2025. The increase was primarily attributable to higher recoveries of $34 million related to share and performance-based compensation, as a result of newly issued share-based compensation awards that are recoverable partially offset by the partial settlement of BN DSU awards during the period.

Previous wording

Compensation and benefits for the three months ended March 31, 2026 was $355 million, which represents an increase of $96 million compared to the three months ended March 31, 2025. The increase was primarily attributable to higher share-based compensation expense of $79 million related to our share and performance-based awards. The increase was the result of new grants issued as well as the partial settlement of BN DSU awards during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.

Current wording

Compensation and benefits for the six months ended June 30, 2026 was $760 million, which represents an increase of $97 million compared to the six months ended June 30, 2025. The increase was primarily attributable to higher share-based compensation expense of $49 million related to our share and performance-based awards which was the result of an increase in the trading price of BAM

Previous wording

Compensation expenses related to carried interest allocation compensation was $211 million for the three months ended March 31, 2026, which represents a change of $65 million compared to the three months ended March 31, 2025. This was primarily driven by higher relative valuations across certain infrastructure funds compared to the prior year. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $68 million during the year.

Current wording

Compensation expenses related to carried interest allocation compensation was $262 million for the six months ended June 30, 2026, which represents a change of $100 million compared to the six months ended June 30, 2025. This was primarily driven by higher relative valuations across certain infrastructure, private equity, and energy funds compared to the prior year. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $123 million during the period.

Previous wording

Interest expense of consolidated funds for the three months ended March 31, 2026 was $10 million, which was primarily driven by borrowings made by BSI II and BMEP in which BAM holds a sufficient interest to require the consolidation of the funds.

Current wording

Interest expense of consolidated funds for the six months ended June 30, 2026 was $17 million, which was primarily driven by borrowings made by BSI II and BMEP in which BAM holds a sufficient interest to require the consolidation of the funds.