Brookfield Asset Management Ltd. (BAM) SEC Filings & Earnings Calls

Carried interest volatility

“Carried interest allocations generated by our funds and associated carried interest compensation are driven by the performance of the underlying investments, as well as overall market conditions.” · word for word

Interest expense increase

“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.” · word for word

Share-based compensation expense volatility

“Cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of Class A Shares.” · word for word

Expense Growth Outpacing Revenue Growth

“Total expenses for the three months ended March 31, 2026 were $733 million, an increase of $231 million or 46% compared to the three months ended March 31, 2025.” · word for word

Carried Interest Volatility

“Carried interest allocations are a performance fee arrangement which is earned from those arrangements where BAM has a general partner capital interest and is entitled to a disproportionate allocation of investment income.” · word for word

Cash Decline

“Cash and cash equivalents were $1.0 billion as of March 31, 2026, a decrease of $538 million from December 31, 2025.” · word for word

Portfolio optimization (community sales) reduces unit count, impacting top-line growth.

“Total average units 43,637, down 14.2% YoY”

Operating expense management remains key; facility operating expense still high.

“Facility operating expense $511.5 million”

Increased leverage from $1B debt issuance; interest expense will increase.

“Issued $1B in senior notes with coupons 4.832% and 5.298%.”

Increased leverage from $1B debt issuance; interest expense will increase.

“Issued $1B in senior notes with coupons 4.832% and 5.298%.”

Increased leverage from debt issuance; interest expense will rise.

“Issuance of $1B in senior notes increases debt burden.”

Margin call risk on pledged shares

“upon the occurrence of certain events of default that remain unremedied and certain other specified events, the Borrower will be required to repay the amounts outstanding under the Credit Facility. The failure by the Borrower to make such repayment may result in the lenders exercising their rights and disposing of some or all of the Collateral Shares.” · word for word

Margin call risk on pledged shares

“upon the occurrence of certain events of default that remain unremedied and certain other specified events, the Borrower will be required to repay the amounts outstanding under the Credit Facility. The failure by the Borrower to make such repayment may result in the lenders exercising their rights and disposing of some or all of the Collateral Shares.” · word for word

Parent Company Control Risk

“BN owns approximately 73% of the Class A Shares. As a result, for so long as BN maintains a significant voting interest in BAM, it will have the ability to exert substantial influence over many matters affecting BAM’s business” · word for word

Key Person Dependency

“The departure of certain individuals could trigger certain 'key person' provisions in the documentation governing certain of our private funds, which would permit the limited partners of those funds to suspend or terminate the funds’ investment periods or withdraw their capital prior to the expiration of the applicable lock-up date.” · word for word

Tax Law Change Risk

“Changes in Canadian federal income tax law might adversely affect BAM and/or holders of Class A Shares.” · word for word

Succession risk; new CEO has strong background but transition always carries execution risk.

“Connor Teskey appointed CEO...Bruce Flatt will continue as Chair”

Increased leverage from $1B debt issuance, though at moderate rates.

“Issued $1B in senior notes, increasing total debt.”

Increased leverage from $1B debt issuance; interest expense will rise.

“Issuance of $1B in senior notes with fixed coupons of 4.653% and 5.298%.”

Increased leverage from $1B debt issuance; interest expense will rise.

“Issuance of $1B in senior notes with fixed coupons of 4.653% and 5.298%.”

Interest expense pressure on Distributable Earnings

“partially offset by $57 million of lower investment income due to higher interest expense on our newly issued corporate borrowings and lower interest revenue from cash on deposit” · word for word

Foreign exchange impact on Fee-Bearing Capital

“The impact of foreign exchange resulted in certain decreases of Fee-Bearing Capital within long-term private funds across the business.” · word for word

Integration risk from acquiring remaining Oaktree interest

“In October, we announced an agreement to acquire the remaining interest in Oaktree.” · word for word

Market conditions could impact monetization valuations

“Market conditions have likewise supported our ability to monetize investments at strong valuations.” · word for word

Execution risk: large-scale nuclear construction projects face cost overruns and delays.

“At least $80 billion of nuclear reactors will be constructed.” · word for word