Brookfield Asset Management Ltd.

Previous wording

Real GDP in the United States is estimated to have contracted by 0.3% for the quarter ended March 31, 2025, compared to an expansion of 2.4% for the quarter ended December 31, 2024. U.S. inflation eased in the first quarter of 2025 with the U.S. Bureau of Labor Statistics reporting that the annual U.S. inflation rate decreased to 2.4% as of March 31, 2025, compared to 2.9% as of December 31, 2024. The U.S. unemployment rate has remained in a narrow range of 4.0 to 4.2% over the first three months of 2025, according to data from the U.S. Bureau of Labor Statistics. As of April 2025, the International Monetary Fund estimated that the U.S. economy will slow to 1.8% in 2025 and 1.7% in 2026 from 2.8% in 2024, on account of greater policy uncertainty, trade tensions, and softer demand momentum.

Current wording

In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 2.6% for the quarter ended June 30, 2025, compared to a contraction of 0.5% for the quarter ended March 31, 2025. U.S. inflation eased in the second quarter of 2025 with estimates reporting that the annual U.S. inflation rate increased to 2.7% as of June 30, 2025, compared to 2.4% as of March 31, 2025. The U.S. unemployment rate has dropped to 4.1% in June 2025, according to data from the U.S. Bureau of Labor Statistics. As of July 2025, the International Monetary Fund estimated that the U.S. economy will slow to 1.9% in 2025 and 2.0% in 2026 from 2.8% in 2024, on account of greater policy uncertainty, trade tensions, and softer demand momentum.

Previous wording

The U.S. Federal Reserve finished the first quarter of 2025 with a benchmark interest rate target range of 4.25% to 4.50%, unchanged from the previous quarter ending December 31, 2024. The Federal Reserve’s latest economic projections reveal expectations of slower growth and higher core inflation by the end of 2025. This partially reflects the expected impact of recently implemented U.S. tariffs and consequential retaliation. During the quarter ended March 31, 2025, the 10-year government bond yields rose 32 basis points in the United States.

Current wording

The U.S. Federal Reserve finished the second quarter of 2025 with a benchmark interest rate target range of 4.25% to 4.50%, unchanged from the previous quarter ending March 31, 2025. The Federal Reserve's latest economic projections reveal expectations of slower growth and higher core inflation by the end of 2025. This partially reflects the expected impact of U.S. tariffs and consequential retaliation. During the quarter ended June 30, 2025, the 10-year government bond yields rose 0.5% in the United States.

Previous wording

Elsewhere, GDP growth in the Eurozone is estimated to have increased by 0.2% for the quarter ended March 31, 2025, while inflation moderated closer to the European Central Bank’s 2% target. The short-term benchmark interest rate set by the European Central Bank was 2.65% as of March 31, 2025, down from 3.15% as of December 31, 2024. In China, real GDP is estimated to have grown by 1.2% for the quarter ended March 31, 2025, but the economy remains subject to various headwinds, including trade policy uncertainties and concerns about its property sector. The 1-year prime rate set by the People's Bank of China was 3.10% as of March 31, 2025, unchanged from December 31, 2024.

Current wording

Outside the U.S., GDP growth in the Eurozone is estimated to have increased by 0.2% for the quarter ended June 30, 2025, while inflation is expected to be below the European Central Bank’s 2% target at 1.7%. The short-term benchmark interest rate set by the European Central Bank was 2.15% as of June 30, 2025, down from 2.65% as of March 31, 2025.

Previous wording

For the quarter ended March 31, 2025, the S&P 500 was lower by 4.6%, the MSCI Europe Index higher by 5.2%, the MSCI Asia Index increased by 0.2%, and the MSCI World Index decreased by 2.1%. During the quarter ended March 31, 2025, U.S. investment grade corporate bond spreads widened by 15 basis points, whereas the high yield credit spreads increased by 65bps.

Current wording

For the quarter ended June 30, 2025, the S&P 500 was up by 10.6%, the MSCI Europe Index was up by 1.0%, the MSCI Asia Index was up by 11.7%, and the MSCI World Index was up by 11.0%. During the quarter ended June 30, 2025, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) tightened by 9 basis points, and the high yield credit spreads were down by 59 basis points.

Previous wording

Our business continues to be well-positioned within the evolving alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities. As investors seek diversification and innovative solutions, we are equipped to navigate market complexities and government policies by delivering value through disciplined strategies. Our ability to adapt to shifting economic conditions and capitalize on emerging trends ensures we remain a trusted partner in achieving long-term financial outcomes.

Current wording

Our business remains well-positioned within the alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities. As investors seek diversification and innovative solutions, we are equipped to navigate market complexities and evolving government policies, by delivering value through disciplined strategies. Our ability to adapt to shifting economic conditions and capitalize on emerging trends ensures we remain a trusted partner in achieving long-term financial outcomes.

Previous wording

•We are one of the largest investors in renewable power and transition investments, with $125 billion of AUM and $58 billion of Fee-Bearing Capital as of March 31, 2025.

Current wording

•We are one of the largest investors in renewable power and transition investments, with $137 billion of AUM and $64 billion of Fee-Bearing Capital as of June 30, 2025.

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 $15.8 billion as of March 31, 2025.

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 $18.1 billion as of June 30, 2025.

Previous wording

•Sustainable solutions including renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation.

Current wording

•Sustainable solutions including nuclear services, renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, power transformation, and sustainable aviation fuel.

Previous wording

•We are one of the world’s largest investment managers in infrastructure, with $214 billion of AUMand $96 billion of Fee-Bearing Capital as of March 31, 2025.

Current wording

•We are one of the world’s largest investment managers in infrastructure, with $222 billion of AUM and $100 billion of Fee-Bearing Capital as of June 30, 2025.

Previous wording

•We have approxim ately 220 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 61,000 operating employees in the infrastructure operating businesses that we manage.

Current wording

•We have approximately 220 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 61,000 operating employees in the infrastructure operating businesses that we manage.

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 $24.6 billion as of March 31, 2025.

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 $27.6 billion as of June 30, 2025.

Previous wording

•We also manage Brookfield Infrastructure Income Fund, a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.

Current wording

•We also manage Brookfield Infrastructure Income Fund ("BII"), a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.

Previous wording

•We are one of the world’s largest investment managers in real estate, with over $272 billion of AUMand $100 billion of Fee-Bearing Capital as of March 31, 2025.

Current wording

•We are one of the world’s largest investment managers in real estate, with over $278 billion of AUM and $102 billion of Fee-Bearing Capital as of June 30, 2025.

Previous wording

•We have invested, on behalf of clients, in iconic properties in the world’s most dynamic markets with the goal of generating stable and growing distri butions for our investors while protecting them against downside risk.

Current wording

•We have invested, on behalf of clients, in iconic properties in the world’s most dynamic markets with the goal of generating stable and growing distributions for our investors while protecting them against downside risk.

Previous wording

•We have one of the best long-term track records for investing in private equity with $147 billion of AUM and $43 billion of Fee-Bearing Capital as of March 31, 2025.

Current wording

•We have one of the best long-term track records for investing in private equity with $150 billion of AUM and $43 billion of Fee-Bearing Capital as of June 30, 2025.

Previous wording

•We manage Brookfield Business Partners L.P. (“BBU”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBU is listed on the NYSE and TSX and had a market capitalizationof $5.1 billion as at March 31, 2025.

Current wording

•We manage Brookfield Business Partners L.P. (“BBU”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBU is listed on the NYSE and TSX and had a market capitalization of $5.3 billion as at June 30, 2025.

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 and technology services to automotive dealers, and one of the largest private school operators globally.

Current 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 and technology services to automotive dealers, one of the largest private school operators globally, and a leading American private education company.

Previous wording

•Weare one of the world’s largest and most experienced credit managers globally, with $321 billion of AUM and $252 billion of Fee-Bearing Capital as of March 31, 2025.

Current wording

•We are one of the world’s largest and most experienced credit managers globally, with $332 billion of AUM and $254 billion of Fee-Bearing Capital as of June 30, 2025.

Previous wording

◦Oaktree, a leader among global investment managers specializing in alternative investments, emphasizing an opportunistic, value- oriented and risk-controlled approach to investing in credit, private equity, real assets and listed equities;

Current wording

◦Oaktree, a leader among global investment managers specializing in alternative investments, emphasizing an opportunistic, value- oriented and risk-controlled approach to investing in credit, equity and real estate

Previous wording

•Brookfield Infrastructure Debtis our infrastructure debt fund series, which invests on behalf of our clients in mezzanine debt investments in high-quality, infrastructure assets.

Current wording

•Brookfield Infrastructure Debt is our infrastructure debt fund series, which invests on behalf of our clients in mezzanine debt investments in high-quality, infrastructure assets.

Previous wording

The following table summarizes the condensed consolidated statements of operations for BAM for the three months ended March 31, 2025 and 2024:

Current wording

The following table summarizes the condensed consolidated statements of operations for BAM for the three and six months ended June 30, 2025 and 2024:

Previous wording

Net income for the three months ended March 31, 2025 was $507 million, of which $581 million was attributable to common stockholders. This compares to net income of $373 million for the three months ended March 31, 2024, of which $441 million was attributable to common stockholders.

Current wording

Net income for the three months ended June 30, 2025 was $584 million, of which $620 million was attributable to common stockholders. This compares to net income of $518 million for the three months ended June 30, 2024, of which $495 million was attributable to common stockholders.

Previous wording

Revenues for the three months ended March 31, 2025 were $1.1 billion, which represents an increase of $197 million compared to $884 million of revenue for the three months ended March 31, 2024.

Current wording

Revenues for the three months ended June 30, 2025 were $1.1 billion, which represents an increase of $174 million or 19% compared to $916 million of revenue for the three months ended June 30, 2024.

Previous wording

Incentive fees for the three months ended March 31, 2025, were $117 million, an increase of $11 million or 10% from the three months ended March 31, 2024, driven by higher incentive distributions earned due to growth in BIP and BEP's dividends of 6% and 5%, respectively.

Current wording

Incentive fees for the three months ended June 30, 2025, were $116 million, an increase of $10 million or 9% from the three months ended June 30, 2024, driven by a 6% growth in BIP dividends of $6 million and 5% growth in BEP dividends of $4 million.

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 (income) loss attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM were $86 million for the three months ended March 31, 2025, compared to $22 million for the three months ended March 31, 2024.

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 was $94 million for the three months ended June 30, 2025, compared to $54 million for the three months ended June 30, 2024.

Previous wording

Interest and dividend revenue for the three months ended March 31, 2025 was $13 million, which represents a decrease of $34 million compared to the three months ended March 31, 2024. The decrease was due to lower interest revenue earned on our deposit with BN.

Current wording

Interest and dividend revenue for the three months ended June 30, 2025 was $34 million, which represents a decrease of $2 million compared to the three months ended June 30, 2024. The decrease was due to lower interest revenue earned on our deposit with BN.

Previous wording

Interest and dividend revenue of consolidated funds for the three months ended March 31, 2025 was $7 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.

Current wording

Interest and dividend revenue of consolidated funds for the three months ended June 30, 2025 was $8 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.

Previous wording

Total expenses for the three months ended March 31, 2025 were $502 million, an increase of $54 million or 12% compared to the three months ended March 31, 2024.

Current wording

Total expenses for the three months ended June 30, 2025 were $557 million, an increase of $224 million or 67% compared to the three months ended June 30, 2024.

Previous wording

Compensation and benefits for the three months ended March 31, 2025 were $259 million, which represents a decrease of $16 million compared to the three months ended March 31, 2024. This was attributable to lower share-based compensation expense on our cash-settled awards due to a decrease in the trading price of BAM Class A Shares during the period, partially offset by higher compensation costs from the ongoing growth of our business.

Current wording

Compensation and benefits for the three months ended June 30, 2025 were $404 million, which represents an increase of $127 million compared to the three months ended June 30, 2024. An increase of $103 million was attributable to higher share and performance-based compensation expense on our cash-settled awards due to an increase in the trading price of BAM Class A Shares during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.

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 broadly consistent with the prior period at $78 million for the three months ended March 31, 2025, compared to $76 million for the three months ended March 31, 2024.

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 were broadly consistent with the prior period at $82 million for the three months ended June 30, 2025, compared to $78 million for the three months ended June 30, 2024.

Previous wording

Other expenses, net for the three months ended March 31, 2025 was $69 million compared to $72 million in the prior period. This amount primarily consists of mark-to-market movements on our investment in BSREP III and on put and call options to acquire additional interests in Oaktree, Primary Wave, and Castlelake. The current period expense compared to the prior period was lower due to gains on the various put and call options, partially offset by valuation changes in BSREP III.

Current wording

Other (expenses) income, net for the three months ended June 30, 2025 totaled $68 million compared to other income of $24 million in the prior period. This was driven by a mark-to-market decrease of $55 million compared to the prior period on our investment in BSREP III, and the remaining movement was due to mark-to-market movements on put and call options to acquire additional interests in Oaktree, Primary Wave, LCM and Castlelake.

Previous wording

Other income, net of consolidated funds for the three months ended March 31, 2025 was $14 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.

Current wording

Other income, net of consolidated funds for the six months ended June 30, 2025 was $13 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.

Previous wording

Our share of income from equity method investments was $58 million compared to $80 million in the prior period, or a decrease of $22 million. This is predominantly driven by lower earnings from our investment in Oaktree due to lower unrealized carried interest generated during the quarter, partially offset by incremental earnings from our investment in Castlelake.

Current wording

Our share of income from equity method investments was $181 million compared to $53 million in the prior period, an increase of $128 million. This is predominantly driven by higher earnings of $103 million from our investment in Oaktree due to carried interest earned on legacy funds, as well as $17 million earned from our investment in Castlelake which we acquired in September 2024.

Previous wording

Income tax expense was $75 million for the three months ended March 31, 2025, which represents an increase of $4 million compared to the three months ended March 31, 2024. This increase was driven by changes in tax rates in certain jurisdictions in which we earn income relative to the prior period.

Current wording

Income tax expense was $75 million for the three months ended June 30, 2025, which represents a decrease of $67 million compared to the three months ended June 30, 2024. The decrease in income tax expense was predominantly a result of lower taxable income reported by our business compared to the prior period.

Previous wording

Net loss attributable to preferred redeemable non-controlling interest was $127 million for the three months ended March 31, 2025 primarily due to lower valuations in certain mature funds.

Current wording

Net loss attributable to preferred redeemable non-controlling interest was $99 million for the three months ended June 30, 2025 primarily due to lower valuations in certain mature real estate funds.

Previous wording

Net income attributable to non-controlling interest was $48 million for the three months ended March 31, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is 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.

Current wording

Net income attributable to non-controlling interest of consolidated entities was $54 million for the three months ended June 30, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is 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 earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $5 million for the three months ended March 31, 2025.

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 earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $9 million for the three months ended June 30, 2025.

Previous wording

Base management and advisory fees for the three months ended March 31, 2025 were $837 million, which represents an increase of $157 million or 23% compared to the three months ended March 31, 2024. The increase was predominantly driven by incremental contributions from capital raised for our real estate and global transition flagship funds, as well as a higher trading price of BIP and BEP.

Current wording

Base management and advisory fees for the six months ended June 30, 2025 were $1.7 billion, which represents an increase of $257 million or 18% compared to the six months ended June 30, 2024. Management fee revenues increased by $100 million from capital raised for our latest real estate flagship fund, $45 million from capital raised for our latest global transition fund, and $50 million from insurance capital inflows from BWS. In addition, management fees increased $16 million from a higher trading price of BIP.

Previous wording

Realized carried interest allocations were $nil for the three months ended March 31, 2025, which represents a decrease of $11 million compared to the three months ended March 31, 2024. Realized carried interest allocations in the prior period were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies. All realized carried interest income in the three months ended March 31, 2024, net of carried interest compensation related to mature funds are attributable to BN through our redeemable preferred shares.

Current wording

Realized carried interest allocations were $nil for the six months ended June 30, 2025, which represents a net decrease of $11 million compared to the six months ended June 30, 2024. Realized carried interest allocations in the prior period were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies. All realized carried interest income in the six months ended June 30, 2024, net of carried interest compensation related to mature funds and are attributable to BN through our redeemable preferred shares.

Previous wording

Other revenues were $105 million for the three months ended March 31, 2025, a decrease of $69 million compared to the three months ended March 31, 2024. Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Relationship Agreement, fund expense recharges, and incentive management fees earned on certain funds. The decrease compared to the prior period was due to a reduction in incentive management fees and lower recoveries in share and performance-based compensation. 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.

Current wording

Other revenues were $285 million for the six months ended June 30, 2025, an increase of $107 million compared to the six months ended June 30, 2024. Other revenues are largely comprised of amounts recoverable from BN related to share and performance-based compensation as defined by the Relationship Agreement, fund expense recharges, and incentive management fees earned on certain funds. Of the total increase, a $38 million increase compared to the prior period was due to higher recoveries in share and performance-based compensation. 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. In addition, the increase was also driven by incremental recoveries of $85 million associated with carried interest compensation for legacy funds.