Brookfield Asset Management Ltd. (BAM)

EX-99.1 2 tm2626124d1_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 Brookfield Asset Management Ltd. Supplemental Financial Disclosure Beginning with the release of results for the third quarter ending September 30, 2026, expected to be released on November 6th, 2026, Brookfield Asset Management Ltd. (“BAM”, “we” or “our”) intends to revise its presentation of Fee Revenues, a non-GAAP financial measure, and the presentation of expenses within Fee Related Earnings, a non-GAAP financial measure, and Fee-Bearing Capital, a supplemental financial measure. Specifically, the revised presentation will provide additional detail with respect to BAM’s partner managers by presenting BAM’s proportionate share of fee revenues and expenses attributable to such partner managers, rather than presenting BAM’s share of fee-related earnings from such partner managers on a net basis. In addition, BAM will revise the Fee-Bearing Capital presentation included for its partner managers to better align with their fee revenue profile. BAM believes this enhanced presentation will provide analysts and investors with greater transparency into the revenue and expense profile of these businesses, which have become a larger contributor to BAM’s credit business, and assist them in understanding and modeling BAM’s results. This presentation includes references to Fee Revenues, Fee-Related Earnings, and Distributable Earnings, which are non-GAAP measures. Fee Revenues is comprised of base management fees, incentive distributions, performance fees and transaction and advisory fees excluding carried interest. Fee-Related Earnings is comprised of fee revenues less direct costs associated with earning those fees, which include employee expenses and professional fees as well as business related technology costs, and other shared services. Distributable Earnings is a Non-GAAP measure that provides insight into earnings that are available for distribution to common shareholders or to be reinvested into the business and is calculated as the sum of fee-related earnings and realized carried interest; returns from our corporate cash and financial assets; interest expense; cash taxes; excluding equity-based compensation costs. We use these measures to provide additional insight into the operating profitability of our asset management activities. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP are included in this presentation. Management assesses the performance of its business based on these non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, net income or other financial measures presented in accordance with U.S. GAAP. Brookfield Asset Management Ltd. Supplemental Financial Disclosure New Presentation FRE and DE ($Millions, except per share amounts) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Fee Revenues $ 1,261 $ 1,273 $ 1,341 $ 1,351 $ 1,459 $ 1,591 $ 1,507 $ 1,587 $ 6,144 $ 5,226 Direct Costs (589) (568) (624) (656) (685) (700) (713) (757) (2,855) (2,437) Total Fee-Related Earnings 672 705 717 695 774 891 794 830 3,289 2,789 Amounts not attributable to BAM1 (28) (28) (19) (19) (20) (24) (22) (22) (88) (94) Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 $ 3,201 $ 2,695 FRE Margin at Our Share2 55% 57% 55% 53% 55% 58% 54% 54% 55% 55% Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 $ 2,837 $ 2,535 Per Share Fee-Related Earnings $ 0.39 $ 0.42 $ 0.43 $ 0.42 $ 0.46 $ 0.53 $ 0.48 $ 0.50 $ 1.97 $ 1.65 Distributable Earnings 0.38 0.40 0.40 0.38 0.41 0.47 0.43 0.44 1.75 1.56 Total diluted weighted average shares during the period 1,630.6 1,630.5 1,629.8 1,628.2 1,630.9 1,626.7 1,619.3 1,612.5 1,622.3 1,629.8 Old Presentation FRE and DE ($Millions, except per share amounts) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Fee Revenues $ 1,210 $ 1,235 $ 1,300 $ 1,285 $ 1,390 $ 1,512 $ 1,426 $ 1,494 $ 5,822 $ 5,030 Direct Costs (538) (530) (583) (590) (616) (621) (632) (664) (2,533) (2,241) Total Fee-Related Earnings 672 705 717 695 774 891 794 830 3,289 2,789 Amounts not attributable to BAM1 (28) (28) (19) (19) (20) (24) (22) (22) (88) (94) Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 $ 3,201 $ 2,695 FRE Margin at Our Share2 58% 59% 57% 56% 58% 61% 57% 57% 58% 57% Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 $ 2,837 $ 2,535 Per Share Fee-Related Earnings $ 0.39 $ 0.42 $ 0.43 $ 0.42 $ 0.46 $ 0.53 $ 0.48 $ 0.50 $ 1.97 $ 1.65 Distributable Earnings 0.38 0.40 0.40 0.38 0.41 0.47 0.43 0.44 1.75 1.56 Total diluted weighted average shares during the period 1,630.6 1,630.5 1,629.8 1,628.2 1,630.9 1,626.7 1,619.3 1,612.5 1,622.3 1,629.8 Change FRE and DE ($Millions, except per share amounts) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Fee Revenues $ 51 $ 38 $ 41 $ 66 $ 69 $ 79 $ 81 $ 93 $ 322 $ 196 Direct Costs (51) (38) (41) (66) (69) (79) (81) (93) (322) (196) Total Fee-Related Earnings - - - - - - - - - - Amounts not attributable to BAM1 - - - - - - - - - - Fee-Related Earnings (FRE) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - FRE Margin at Our Share2 -3% -2% -2% -3% -3% -3% -3% -3% -3% -2% Distributable Earnings (DE) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Per Share Fee-Related Earnings $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Distributable Earnings - - - - - - - - - - Total diluted weighted average shares during the period - - - - - - - - - - Brookfield Asset Management Ltd. Supplemental Financial Disclosure Credit New Presentation Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Opportunistic Credit3 $ 26 $ 25 $ 24 $ 23 $ 24 $ 24 $ 24 $ 24 Private Credit4 62 59 61 63 62 70 69 70 Structured Credit and Other 13 12 13 14 15 17 16 17 Long-Term Private Funds 101 96 98 100 101 111 109 111 Opportunistic Credit5 2 2 2 2 3 3 3 3 Private Credit6 42 43 48 48 49 57 47 69 Perpetual Liquid Credit7 55 57 57 57 58 56 67 84 Permanent Capital and Perpetual Strategies 99 102 107 107 110 116 117 156 Liquid Credit 69 68 70 71 75 77 79 81 Liquid Strategies 69 68 70 71 75 77 79 81 Total Credit $ 269 $ 266 $ 275 $ 278 $ 286 $ 304 $ 305 $ 349 Old Presentation Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Opportunistic Credit3 $ 26 $ 25 $ 24 $ 23 $ 24 $ 24 $ 24 $ 24 Private Credit4 37 38 38 39 40 47 47 48 Structured Credit and Other 13 12 13 14 15 17 16 17 Long-Term Private Funds 76 75 75 76 79 88 87 89 Opportunistic Credit5 2 2 2 2 3 3 3 3 Private Credit6 42 43 48 47 48 56 46 68 Perpetual Liquid Credit7 55 57 57 57 58 56 67 84 Permanent Capital and Perpetual Strategies 99 102 107 106 109 115 116 155 Liquid Credit 69 68 70 71 75 77 79 81 Liquid Strategies 69 68 70 71 75 77 79 81 Total Credit $ 244 $ 245 $ 252 $ 253 $ 263 $ 280 $ 282 $ 326 Change Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Opportunistic Credit3 $ - $ - $ - $ - $ - $ - $ - - Private Credit4 25 21 23 24 22 23 22 22 Structured Credit and Other - - - - - - - - Long-Term Private Funds 25 21 23 24 22 23 22 22 Opportunistic Credit5 - - - - - - - - Private Credit6 - - - 1 1 1 1 1 Perpetual Liquid Credit7 - - - - - - - - Permanent Capital and Perpetual Strategies - - - 1 1 1 1 1 Liquid Credit - - - - - - - - Liquid Strategies - - - - - - - - Total Credit $ 25 $ 21 $ 23 $ 25 $ 23 $ 24 $ 23 $ 23 New Presentation Fee Revenues ($Millions) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Base Management Fees Long-term private funds $ 242 $ 237 $ 259 $ 236 $ 240 $ 265 $ 261 $ 273 $ 1,039 $ 974 Permanent Capital and Perpetual strategies 117 111 105 160 197 198 193 232 820 493 Liquid Strategies 62 64 64 62 67 68 66 71 272 252 Total Base Management Fees 421 412 428 458 504 531 520 576 2,131 1,719 Transaction and Advisory Fees 2 14 10 7 20 23 26 26 95 33 Total Fee Revenues $ 423 $ 426 $ 438 $ 465 $ 524 $ 554 $ 546 $ 602 $ 2,226 $ 1,752 Old Presentation Fee Revenues ($Millions) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Base Management Fees Long-term private funds $ 192 $ 213 $ 228 $ 226 $ 268 $ 280 $ 277 $ 288 $ 1,113 $ 859 Permanent Capital and Perpetual strategies 117 111 105 111 120 127 122 150 519 444 Liquid Strategies 62 64 64 62 67 68 66 71 272 252 Total Base Management Fees 371 388 397 399 455 475 465 509 1,904 1,555 Transaction and Advisory Fees 1 - - - - - - - - 1 Total Fee Revenues $ 372 $ 388 $ 397 $ 399 $ 455 $ 475 $ 465 $ 509 $ 1,904 $ 1,556 Change Fee Revenues ($Millions) Last Three Months Ended Last Twelve Months Ended Base Management Fees Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Long-term private funds $ 50 $ 24 $ 31 $ 10 $ (28) $ (15) $ (16) $ (15) $ (74) $ 115 Permanent Capital and Perpetual strategies - - - 49 77 71 71 82 301 49 Liquid Strategies - - - - - - - - - - Total Base Management Fees 50 24 31 59 49 56 55 67 227 164 Transaction and Advisory Fees 1 14 10 7 20 23 26 26 95 32 Total Fee Revenues $ 51 $ 38 $ 41 $ 66 $ 69 $ 79 $ 81 $ 93 $ 322 $ 196 Brookfield Asset Management Ltd. Supplemental Financial Disclosure New Presentation Fee-Related Earnings and Distributable Earnings Detail ($Millions) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Base Management Fees Infrastructure $ 236 $ 230 $ 227 $ 235 $ 240 $ 249 $ 254 $ 266 $ 1,009 $ 928 Energy 127 138 135 158 197 186 173 182 738 558 Private Equity 112 107 105 106 110 132 123 141 506 430 Real Estate 248 249 318 261 256 255 253 259 1,023 1,076 Credit 421 412 428 458 504 531 520 576 2,131 1,719 Incentive Distributions and Performance Fees 106 106 117 116 116 212 132 129 589 445 Transaction and Advisory Fees 11 31 11 17 36 26 52 34 148 70 Total Fee Revenues 1,261 1,273 1,341 1,351 1,459 1,591 1,507 1,587 6,144 5,226 Direct Costs Compensation and Benefits (435) (414) (457) (459) (470) (482) (496) (512) (1,960) (1,765) Other Expenses (154) (154) (167) (197) (215) (218) (217) (245) (895) (672) Total Direct Costs (589) (568) (624) (656) (685) (700) (713) (757) (2,855) (2,437) Total Fee-Related Earnings 672 705 717 695 774 891 794 830 3,289 2,789 Amounts not attributable to BAM1 28 28 19 19 20 24 22 22 88 94 Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 $ 3,201 $ 2,695 Add: Investment & Other Income (Net of Interest Expense)8 51 52 33 14 (6) (8) 11 (27) (30) 150 Add: Equity-Based Compensation Costs 8 8 14 11 11 8 14 23 56 41 Less: Cash Taxes (84) (88) (91) (88) (98) (100) (95) (97) (390) (351) Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 $ 2,837 $ 2,535 FRE as % of Pre-tax DE 104% 104% 94% 110% 114% 113% 97% 100% 99% 93% Old Presentation Fee-Related Earnings and Distributable Earnings Detail ($Millions) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Base Management Fees Infrastructure $ 236 $ 230 $ 227 $ 235 $ 240 $ 249 $ 254 $ 266 $ 1,009 $ 928 Energy 127 138 135 158 197 186 173 182 738 558 Private Equity 112 107 105 106 110 132 123 141 506 430 Real Estate 248 249 318 261 256 255 253 259 1,023 1,076 Credit 371 388 397 399 455 475 465 509 1,904 1,555 Incentive Distributions and Performance Fees 106 106 117 116 116 212 132 129 589 445 Transaction and Advisory Fees 10 17 1 10 16 3 26 8 53 38 Total Fee Revenues 1,210 1,235 1,300 1,285 1,390 1,512 1,426 1,494 5,822 5,030 Direct Costs Compensation and Benefits (401) (386) (425) (431) (438) (443) (453) (463) (1,797) (1,643) Other Expenses (137) (144) (158) (159) (178) (178) (179) (201) (736) (598) Total Direct Costs (538) (530) (583) (590) (616) (621) (632) (664) (2,533) (2,241) Total Fee-Related Earnings 672 705 717 695 774 891 794 830 3,289 2,789 Amounts not attributable to BAM1 28 28 19 19 20 24 22 22 88 94 Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 $ 3,201 $ 2,695 Add: Investment & Other Income (Net of Interest Expense)8 51 52 33 14 (6) (8) 11 (27) (30) 150 Add: Equity-Based Compensation Costs 8 8 14 11 11 8 14 23 56 41 Less: Cash Taxes (84) (88) (91) (88) (98) (100) (95) (97) (390) (351) Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 $ 2,837 $ 2,535 FRE as % of Pre-tax DE 104% 104% 94% 110% 114% 113% 97% 100% 99% 93% Change Fee-Related Earnings and Distributable Earnings Detail ($Millions) Last Three Months Ended Last Twelve Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-26 Q2-25 Base Management Fees Infrastructure $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Energy - - - - - - - - - - Private Equity - - - - - - - - - - Real Estate - - - - - - - - - - Credit 50 24 31 59 49 56 55 67 227 164 Incentive Distributions and Performance Fees - - - - - - - - - - Transaction and Advisory Fees 1 14 10 7 20 23 26 26 95 32 Total Fee Revenues 51 38 41 66 69 79 81 93 322 196 Direct Costs Compensation and Benefits (34) (28) (32) (28) (32) (39) (43) (49) (163) (122) Other Expenses (17) (10) (9) (38) (37) (40) (38) (44) (159) (74) Total Direct Costs (51) (38) (41) (66) (69) (79) (81) (93) (322) (196) Total Fee-Related Earnings - - - - - - - - - - Amounts not attributable to BAM1 - - - - - - - - - - Fee-Related Earnings (FRE) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Add: Investment & Other Income (Net of Interest Expense)8 - - - - - - - - - - Add: Equity-Based Compensation Costs - - - - - - - - - - Less: Cash Taxes - - - - - - - - - - Distributable Earnings (DE) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - FRE as % of Pre-tax DE 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Brookfield Asset Management Ltd. Supplemental Financial Disclosure New Presentation Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Infrastructure $ 99 $ 97 $ 96 $ 100 $ 101 $ 106 $ 109 $ 114 Energy 58 58 58 64 69 67 72 74 Private Equity 44 45 43 43 46 48 48 54 Real Estate 94 94 100 102 102 102 103 104 Credit 269 266 275 278 286 304 305 349 Total FBC $ 564 $ 560 $ 572 $ 587 $ 604 $ 627 $ 637 $ 695 Old Presentation Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Infrastructure $ 99 $ 97 $ 96 $ 100 $ 101 $ 106 $ 109 $ 114 Energy 58 58 58 64 69 67 72 74 Private Equity 44 45 43 43 46 48 48 54 Real Estate 94 94 100 102 102 102 103 104 Credit 244 245 252 253 263 280 282 326 Total FBC $ 539 $ 539 $ 549 $ 562 $ 581 $ 603 $ 614 $ 672 Change Fee-Bearing Capital ($Billions) As of Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Infrastructure $ - $ - $ - $ - $ - $ - $ - $ - Energy - - - - - - - - Private Equity - - - - - - - - Real Estate - - - - - - - - Credit 25 21 23 25 23 24 23 23 Total FBC $ 25 $ 21 $ 23 $ 25 $ 23 $ 24 $ 23 $ 23 Brookfield Asset Management Ltd. Supplemental Financial Disclosure New Presentation Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings ($Millions) Last Three Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Net income $ 537 $ 680 $ 507 $ 584 $ 692 $ 615 $ 586 $ 1,172 Add or subtract the following: Provision for taxes9 96 129 75 75 78 299 110 162 Depreciation and amortization10 4 3 3 11 30 24 20 20 Carried interest allocations11 (55) (29) (2) 63 (112) (158) (112) (553) Carried interest allocation compensation11 38 11 146 16 (20) 4 211 51 Other income and expenses12 69 (24) 55 55 97 43 (21) (41) Interest expense13 8 5 13 37 26 39 47 60 Interest and dividend revenue13 (34) (26) (20) (42) (31) (36) (29) (36) Other revenues14 (141) (59) (115) (197) (143) (115) (207) (117) Share of income from equity method investments15 (61) (145) (58) (181) (110) (53) (70) (199) Fee-related earnings of equity investment methods at our share15 87 95 106 103 132 153 144 170 Compensation costs recovered from affiliates16 95 34 (8) 137 121 48 67 101 Other adjustments17 1 3 (4) 15 (6) 4 26 18 Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 Add: Investment & Other Income (Net of Interest Expense)18 51 52 33 14 (6) (8) 11 (27) Add: Equity-Based Compensation Costs18 8 8 14 11 11 8 14 23 Less: Cash taxes19 (84) (88) (91) (88) (98) (100) (95) (97) Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 Reconciliation of Revenues to Fee Revenues ($Millions) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Base management and advisory fees $ 768 $ 794 $ 837 $ 815 $ 859 $ 873 $ 860 $ 919 Incentive Fees20 106 106 117 116 116 212 130 128 Fee Revenues from equity method investments21 387 376 400 424 483 517 503 532 Other adjustments22 - (3) (13) (4) 1 (11) 14 8 Total Fee Revenues $ 1,261 $ 1,273 $ 1,341 $ 1,351 $ 1,459 $ 1,591 $ 1,507 $ 1,587 Old Presentation Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings ($Millions) Last Three Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Net income $ 537 $ 680 $ 507 $ 584 $ 692 $ 615 $ 586 $ 1,172 Add or subtract the following: Provision for taxes9 96 129 75 75 78 299 110 162 Depreciation and amortization10 4 3 3 11 30 24 20 20 Carried interest allocations11 (55) (29) (2) 63 (112) (158) (112) (553) Carried interest allocation compensation11 38 11 146 16 (20) 4 211 51 Other income and expenses12 69 (24) 55 55 97 43 (21) (41) Interest expense13 8 5 13 37 26 39 47 60 Interest and dividend revenue13 (34) (26) (20) (42) (31) (36) (29) (36) Other revenues14 (141) (59) (115) (197) (143) (115) (207) (117) Share of income from equity method investments15 (61) (145) (58) (181) (110) (53) (70) (199) Fee-related earnings of equity investment methods at our share15 87 95 106 103 132 153 144 170 Compensation costs recovered from affiliates16 95 34 (8) 137 121 48 67 101 Other adjustments17 1 3 (4) 15 (6) 4 26 18 Fee-Related Earnings (FRE) $ 644 $ 677 $ 698 $ 676 $ 754 $ 867 $ 772 $ 808 Add: Investment & Other Income (Net of Interest Expense)18 51 52 33 14 (6) (8) 11 (27) Add: Equity-Based Compensation Costs18 8 8 14 11 11 8 14 23 Less: Cash taxes19 (84) (88) (91) (88) (98) (100) (95) (97) Distributable Earnings (DE) $ 619 $ 649 $ 654 $ 613 $ 661 $ 767 $ 702 $ 707 Reconciliation of Revenues to Fee Revenues ($Millions) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Base management and advisory fees $ 768 $ 794 $ 837 $ 815 $ 859 $ 873 $ 860 $ 919 Incentive Fees20 106 106 117 116 116 212 130 128 Fee Revenues from equity method investments21 336 338 359 358 414 438 422 439 Other adjustments22 - (3) (13) (4) 1 (11) 14 8 Total Fee Revenues $ 1,210 $ 1,235 $ 1,300 $ 1,285 $ 1,390 $ 1,512 $ 1,426 $ 1,494 Change Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings ($Millions) Last Three Months Ended Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Net income $ - $ - $ - $ - $ - $ - $ - $ - Add or subtract the following: Provision for taxes9 - - - - - - - - Depreciation and amortization10 - - - - - - - - Carried interest allocations11 - - - - - - - - Carried interest allocation compensation11 - - - - - - - - Other income and expenses12 - - - - - - - - Interest expense13 - - - - - - - - Interest and dividend revenue13 - - - - - - - - Other revenues14 - - - - - - - - Share of income from equity method investments15 - - - - - - - - Fee-related earnings of equity investment methods at our share15 - - - - - - - - Compensation costs recovered from affiliates16 - - - - - - - - Other adjustments17 - - - - - - - - Fee-Related Earnings (FRE) $ - $ - $ - $ - $ - $ - $ - $ - Add: Investment & Other Income (Net of Interest Expense)18 - - - - - - - - Add: Equity-Based Compensation Costs18 - - - - - - - - Less: Cash taxes19 - - - - - - - - Distributable Earnings (DE) $ - $ - $ - $ - $ - $ - $ - $ - Reconciliation of Revenues to Fee Revenues ($Millions) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Base management and advisory fees $ - $ - $ - $ - $ - $ - $ - $ - Incentive Fees20 - - - - - - - - Fee Revenues from equity method investments21 51 38 41 66 69 79 81 93 Other adjustments22 - - - - - - - - Total Fee Revenues $ 51 $ 38 $ 41 $ 66 $ 69 $ 79 $ 81 $ 93 Brookfield Asset Management Ltd. Supplemental Financial Disclosure Endnotes FRE DE Summary 1 Non-controlling interest represents the approximately 26% of Oaktree not held by Brookfield for the three months ended Jun 30, 2026 ; includes approximately 26% of Oaktree not held by Brookfield for the twelve months ended March 31, 2026. (Approximately 26% from January 1, 2025 to Jun 30, 2026; approximately 27% from April 1, 2024 to December 31, 2024). 2 FRE Margin at our share is calculated consolidating our share of Oaktree's non-controlling interest revenues and costs. Credit FBC and Fees 3 Long-Term Opportunistic Credit includes our global opportunistic credit fund series. 4 Long-Term Private Credit includes infrastructure debt, real estate debt, and partner manager closed-end private credit funds. 5 Perpetual Opportunistic Credit includes our value opportunistic fund series. 6 Perpetual Private Credit includes senior mezzanine real estate debt, insurance capital allocated into private credit (SMAs), and Oaktree evergreen private credit funds. 7 Perpetual Liquid Credit includes insurance capital allocated to liquid credit products. FRE DE Details 8 Other income includes BAM's portion of equity method investments’ realized carried interest, investment income, interest expense and other items. GAAP to non-GAAP 9 This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of BAM. 10 This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from FRE as well as certain capital depreciation costs recharged from BAM's affiliates. 11 These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense. Unrealized carried interest allocations and associated compensation expense are non-cash in nature. Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized. 12 This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds. 13 This adjustment removes interest and charges paid or received by consolidated entities and funds. 14 This adjustment adds back other revenues earned that are non-cash in nature. 15 These adjustments remove our share of equity method investments' earnings, including items 9) to 14) above and include its share of equity method investments' Fee-Related Earnings. 16 This item adds back compensation costs that will be borne by affiliates. 17 This adjustment adds back base management fees earned from funds that are eliminated upon consolidation and other items. 18 This adjustment adds back equity-based compensation and other income associated with BAM’s portion of equity method investments' realized carried interest, investment income and other items. 19 Represents the impact of cash taxes paid by the business. 20 This adjustment adds incentive distributions that are included in fee revenues. 21 This adjustment adds Oaktree management fees at 100% ownership and our proportionate share of partner manager earnings. 22 This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items. Brookfield Asset Management Ltd. Supplemental Financial Disclosure Notice to Readers Brookfield Asset Management Ltd. ("BAM") is not making any offer or invitation of any kind by communication of this Supplemental Information and under no circumstance is it to be construed as a prospectus or an advertisement. Unless otherwise specified, the information and statements presented in this Supplemental Information reflect balances on a 100% basis for BAM and its subsidiaries (“our asset management business”). This Supplemental Information contains “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of other relevant securities legislation, including applicable securities laws in Canada, which reflect our current views with respect to, among other things, our operations and financial performance (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of BAM and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of BAM are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “target”, “project”, “forecast”, “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this Supplemental Information include statements referring to the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our liquidity and ability to access and raise capital, our fundraising targets, our target growth objectives, our target carried interest, and the impact of acquisitions and dispositions on our business. Although BAM believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) volatility in the trading price of our class A limited voting shares; (ii) deficiencies in public company financial reporting and disclosures; (iii) the difficulty for investors to effect service of process and enforce judgments in various jurisdictions; (iv) being subjected to numerous laws, rules and regulatory requirements; (v) the potential ineffectiveness of our policies to prevent violations of applicable law; (vi) foreign currency risk and exchange rate fluctuations; (vii) further increases in interest rates; (viii) political instability or changes in government; (ix) unfavorable economic conditions or changes in the industries in which we operate; (x) inflationary pressures; (xi) catastrophic events, such as earthquakes, hurricanes, or pandemics/epidemics; (xii) ineffective management of sustainability considerations, and inadequate or ineffective health and safety programs; (xiii) failure of our information technology systems; (xiv) failure to adopt AI in support of our business objectives (xv) us and our managed assets becoming involved in legal disputes; (xvi) losses not covered by insurance; (xvi) inability to collect on amounts owing to us; (xviii) operating and financial restrictions through covenants in our loan, debt and security agreements; (xix) our ability to maintain our global reputation; (xx) risks related to our infrastructure, energy, private equity, real estate, and credit strategies; (xxi) the impact of poor product development or marketing efforts on fee-bearing capital; (xxii) managing our cash flow and meeting our financial obligations; (xxiii) our acquisitions; (xxiv) requirement of temporary investments and backstop commitments to support our asset management business; (xxv) revenues impacted by a decline in the size or pace of investments made by our managed assets; (xxvi) our earnings growth can vary, which may affect our dividend and the trading price of our class A limited voting shares; (xxvii) exposed risk due to increased amount and type of investment products in our managed assets; (xxviii) information barriers that may give rise to conflicts and risks; (xxix) Brookfield Corporation (“BN”) exercising substantial influence over BAM; (xxx) BN transferring the ownership of BAM to a third party; (xxxi) potential conflicts of interest with BN; (xxxii) difficulty in maintaining our culture or managing our human capital; (xxxiii) United States and Canadian taxation laws and changes thereto and (xxxiv) other factors described from time to time in our documents filed with the securities regulators in the United States and Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this Supplemental Information or such other date specified herein. Except as required by law, BAM undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. STATEMENT REGARDING PAST AND FUTURE PERFORMANCE AND TARGET RETURNS Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, or that future investments or fundraising efforts will be similar to the historic results presented herein (because of economic conditions, the availability of investment opportunities or otherwise). The target returns set forth herein are for illustrative and informational purposes only and have been presented based on various assumptions made by BAM. in relation to, among other things, the investment strategies being pursued by the funds, any of which may prove to be incorrect. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond BAM.’s control, the actual performance of the funds could differ materially from the target returns set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns. No assurance, representation or warranty is made by any person that the target returns will be achieved, and undue reliance should not be put on them. Prior performance is not indicative of future results and there can be no guarantee that the funds will achieve the target returns or be able to avoid losses. STATEMENT REGARDING USE OF NON-GAAP MEASURES We disclose a number of financial measures in this Supplemental Information that are calculated and presented using methodologies other than in accordance with U.S. GAAP, as issued by the International Accounting Standards Board, including, but not limited to, Fee Revenues, Fee-Related Earnings and Distributable Earnings. Supplemental financial measures include Assets Under Management, Fee-Bearing Capital and Uncalled Fund Commitments. We utilize these measures in managing the business, including for performance measurement, capital allocation and valuation purposes and believe that providing these performance measures on a supplemental basis to our U.S. GAAP results is helpful to investors in assessing the overall performance of our businesses. These non-GAAP measures have limitations as analytical tools and should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with U.S. GAAP. We caution readers that these non-GAAP financial measures or other financial metrics may differ from the calculations disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.