Brookfield Asset Management Ltd. (BAM) - Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. Brookfield Asset Management Ltd. (BAM) is a global alternative asset manager operating across five principal strategies: Infrastructure, Energy, Private Equity, Real Estate, and Credit. As of June 30, 2026, BAM reported $1.0 trillion in Assets Under Management (AUM) and $672 billion in Fee-Bearing Capital. The company is a large accelerated filer incorporated in British Columbia, Canada, with principal executive offices in New York, NY.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenues | $1,753 million | $1,090 million | $3,091 million | $2,171 million |
| Net Income | $1,172 million | $584 million | $1,758 million | $1,091 million |
| Net Income Attributable to Common Stockholders | $904 million | $620 million | $1,521 million | $1,201 million |
| Earnings Per Share (Diluted) | $0.56 | $0.38 | $0.94 | $0.74 |
| Operating Cash Flow | $545 million | $529 million | $883 million | $643 million |
| Corporate Liquidity | $3.1 billion (as of June 30, 2026) | |||
| Total Corporate Borrowings | $3.466 billion (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 61% year-over-year for Q2 2026, driven primarily by a $616 million swing in unrealized carried interest allocations (from a loss of $63 million in 2025 to a gain of $553 million in 2026). Base management and advisory fees grew 13% to $919 million.
- Profitability: Net income attributable to common stockholders rose 46% to $904 million. Segment Earnings (a non-GAAP measure) increased 13% to $640 million for the quarter.
- Balance Sheet: Total assets grew 18% to $20.1 billion. Investments of consolidated funds surged 512% to $3.09 billion due to the consolidation of BPE, BMEP, and BREVA-H during the period.
- Debt: Corporate borrowings increased 40% to $3.466 billion following a $1.0 billion debt offering in April 2026.
Guidance, Outlook, and Significant Events
- Oaktree Acquisition: On July 31, 2026 (subsequent to the reporting period), BAM acquired the remaining 26% interest in Oaktree Capital Management, achieving 100% ownership and control. The transaction was valued at approximately $3.0 billion. Results will be consolidated starting July 31, 2026.
- Dividend: On August 4, 2026, the Board declared a quarterly dividend of $0.5025 per share, payable September 29, 2026.
- Share Repurchases: BAM repurchased 4.28 million Class A shares in Q2 2026 under its Normal Course Issuer Bid. Approximately 24.5 million shares remain available for repurchase through January 2027.
- Outlook: Management notes that the business is well-positioned to navigate market complexities. Fee-Bearing Capital increased 10% in Q2 to $672 billion, driven by inflows in Credit ($52.7 billion) and Private Equity ($5.4 billion).
- Risks: Key risks include market volatility affecting carried interest valuations, interest rate exposure on variable rate borrowings, and the integration of the Oaktree platform.
Investor Verification Checklist
- Carried Interest Volatility: Verify the sustainability of the $553 million unrealized carried interest gain, which is highly sensitive to fund valuations and market conditions.
- Oaktree Integration: Monitor the impact of the 100% consolidation of Oaktree on future earnings, expense structures, and non-controlling interest allocations.
- Debt Service: Review the impact of the increased corporate debt load ($3.466 billion) on interest expense and liquidity coverage ratios.
- Consolidation Accounting: Understand the impact of newly consolidated funds (BPE, BMEP, BREVA-H) on the balance sheet and the classification of non-controlling interests.
- Fee-Bearing Capital: Track the $68 billion in uncalled fund commitments that are not yet fee-bearing to assess future revenue potential.