01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Brookfield Asset Management Ltd. (BAM) reported a strong first quarter for 2026, with total revenues increasing by 24% year-over-year to $1.34 billiona.
This growth was primarily driven by a significant increase in "Other Revenues," largely due to higher recoveries of compensation costs from BN, and a notable rise in investment income, particularly from unrealized carried interest allocations. Net income attributable to common stockholders reached $617 millionb, a 6% increase from the prior year's quarter, reflecting improved operational performance. The company's Fee-Bearing Capital also saw a healthy increase to $613.8 billion, up 2% from the previous quarter, indicating continued growth in assets under management across its diverse strategies.
The Credit segment remains the largest contributor to Fee-Bearing Capital, followed by Real Estate and Infrastructure. Despite increased expenses, particularly in compensation and benefits, BAM demonstrated robust profitability and maintained a strong liquidity position with $2.5 billionc in deployable capital at quarter-end.
02—Key points
Key Highlights
- Total revenues increased by 24% to $1.34 billion for the three months ended March 31, 2026, compared to $1.08 billion in the prior year.
- Net income attributable to common stockholders rose by 6% to $617 million, compared to $581 million in the prior year's period.
- Fee-Bearing Capital grew by 2% to $613.8 billion as of March 31, 2026, from $602.7 billion as of December 31, 2025.
- Other Revenues surged by 97% to $207 million, primarily driven by higher recoveries related to share and performance-based compensation.
- Unrealized carried interest allocations significantly increased to $96 million, up from $2 million in the prior year's period, reflecting improved fund valuations.
- Corporate liquidity stood strong at $2.5 billion as of March 31, 2026, providing ample resources for strategic initiatives.
- Expenses increased by 46% to $733 million, largely due to higher compensation and benefits and interest expenses.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $990.00M$1.08B | −8.4% |
| Operating Expenses | $733.00M$502.00M | +46.0% |
| Net Income | $586.00M$507.00M | +15.6% |
05—Questions
Frequently Asked Questions
What drove the significant increase in 'Other Revenues'?
Other Revenues increased by 97% to $207 million primarily due to higher recoveries of $79 million related to share and performance-based compensation from BN, as well as newly issued share-based compensation awards and modifications to BN DSU awards.
How did 'Carried Interest Allocations' perform this quarter?
Carried interest allocations, a key performance metric, saw a substantial increase in unrealized gains, reaching $96 million compared to $2 million in the prior year's period. This was driven by improved fund valuations across various strategies, particularly in global transition, private equity, and real estate funds. Realized carried interest was $16 million.
What is the current liquidity position of BAM?
BAM maintains a strong liquidity position. As of March 31, 2026, corporate liquidity was $2.5 billion, comprising $1.2 billion in cash and short-term financial assets and $1.4 billion in undrawn credit facilities. This provides ample resources for strategic initiatives and new product seeding.
How did the company's investments in consolidated funds change?
Investments of consolidated funds increased significantly by $1.9 billion compared to December 31, 2025. This substantial growth was primarily driven by the consolidation of BPE and BMEP during the period, where BAM holds sufficient interest to require consolidation.
06—Continue