A global alternative asset manager, Brookfield invests in real-world assets like infrastructure, renewable power, real estate, private equity, and credit on behalf of pension funds, institutions, and everyday investors. Its roots reach back to 1899, when Canadian financiers founded the São Paulo Tramway, Light and Power Co. to bring streetcars and electricity to Brazil—so early on it was nicknamed "The Light." It was later renamed Brascan (a blend of Brazil and Canada) before taking the Brookfield name in 2005.
Fee-Bearing Capital rose 10% in the quarter to $672B, the largest sequential increase on record, as credit inflows rose.
rose 10% sequentially to $672 billion, the largest quarterly increase in the company's history as a standalone manager. rose 61% to $1.75 billion and doubled to $1.17 billion, driven by a $616 million swing in unrealized allocations tied to energy transition and private equity fund valuations. The base business accelerated too, with base management fees up 13% and up 20%, leaving the company with $3.1 billion in liquidity after $576 million in share repurchases.
Key takeaways
reached $672 billion, up $58 billion or 10% from Q1, with $68.1 billion in inflows led by $52.7 billion from Credit strategies including insurance capital and fundraising.
rose 61% to $1.75 billion, driven by a $616 million swing in unrealized allocations to a gain of $553 million from a loss of $63 million a year earlier, reflecting higher valuations in energy transition and private equity funds.
Base management and advisory fees grew 13% to $919 million, reflecting higher market capitalizations for listed affiliates , , and BBUC, plus inflows from perpetual strategies and insurance capital.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net income rose 101% to $1.2B, driven by $616M higher unrealized carried interest and 13% base fee growth.
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Total revenues increased 61% to $1.8B, primarily from a $616M swing in unrealized allocations tied to energy transition and private equity fund valuations.
increased 15% to $707 million, supported by a 20% rise in to $808 million, partially offset by higher on corporate borrowings.
Compensation and benefits were flat at $405 million as higher costs from business growth were offset by lower tied to a decline in BAM's Class A share price during the quarter.
Corporate liquidity stood at $3.1 billion, including $1.8 billion in cash and short-term assets, following a $1.0 billion debt offering and $576 million in share repurchases.
What changed
The ~$1.6 billion acquisition of remaining equity interests, flagged in prior quarters and expected to close in H1 2026, was not mentioned as completed in this filing.
Base management fee growth accelerated to 13% from 3% in Q1, as the $614 billion in began translating into faster fee growth with uncalled commitments being deployed.
The multi-year unresolved item of 's unit price exceeding the $31.53 adjusted high-water mark to unlock performance fees was not addressed, remaining an open watch item.
The sensitivity of base management fees to , , and BBUC market capitalizations, identified as the primary market risk in Q1, was quantified at up to $19 million for a 10% adverse move as of June 30, 2026.
What to watch
Track whether the ~$1.6 billion acquisition of remaining equity interests closes and what it adds to in subsequent quarters.
Monitor whether 's unit price exceeds the $31.53 adjusted high-water mark to unlock performance fees, a multi-year unresolved item.
Watch the pace at which the $672 billion in translates into base management fee growth, particularly as uncalled commitments are deployed.
Follow the sensitivity of base management fees to , , and BBUC market capitalizations, which the company quantified as up to $19 million for a 10% adverse move.
Base management and advisory fees grew 13% to $919M, reflecting higher market caps for listed affiliates , , and BBUC, and inflows from perpetual strategies and insurance capital.
reached $672B, up 10% during the quarter, with $68.1B in inflows led by $52.7B in Credit from insurance capital and fundraising.
Compensation and benefits were flat at $405M as higher costs from business growth were offset by lower due to a decline in BAM's share price.
increased 15% to $707M, supported by a 20% rise in to $808M, partially offset by higher on corporate borrowings.
Corporate liquidity stood at $3.1B, including $1.8B in cash and short-term assets, following a $1.0B debt offering and $576M in share repurchases during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risk is sensitivity of base management fees to market cap of BEP, BIP, and BBUC; a 10% adverse move could reduce fees by up to $19 million.
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Base management fees tied to the of , , and BBUC represent the primary market risk; a 10% adverse movement as of June 30, 2026 could reduce fees by up to $19 million.
Foreign currency risk is very limited because most private funds and Fee Revenues are U.S. Dollar-denominated; the company may use to hedge meaningful foreign-currency investments.
Interest rate risk arises from variable-rate balances with affiliates and external parties, an undrawn $1.1 billion external , and a newly established with no notes outstanding as of June 30, 2026.
Fixed-rate totaling $3.5 billion carry coupons between 4.653% and 6.077%, with maturities ranging from 2030 to 2055.
Credit risk from investor defaults on is considered not material given the diversity and creditworthiness of over 2,500 clients, including large institutional investors, sovereign wealth funds, and pension plans.
For a discussion of BAM's legal proceedings, see the section entitled “Litigation” appearing in Note 15, “Commitments and Contingencies” in BAM's condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.
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For a discussion of BAM's legal proceedings, see the section entitled “Litigation” appearing in Note 15, “Commitments and Contingencies” in BAM's condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.
For a discussion of our potential risks and uncertainties, see the information under “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
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For a discussion of our potential risks and uncertainties, see the information under “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.