Brookfield Asset Management Ltd.

Red flags

• Management excluded the acquired Asset Management Company from its internal-control assessment even though it represented approximately 96% of total assets, 81% of net assets, 99% of total revenues and 96% of net income for 2025.
• BAM had $6.6 billion of bridge-financing and other equity commitments outstanding at year-end, up from $3.3 billion, plus $179 million of guarantees.
• Corporate borrowings were $2.48 billion at year-end after $2.5 billion of senior unsecured notes were issued in 2025, including notes carrying fixed rates of 4.653% to 6.077%; consolidated funds also had $462 million of revolving-facility borrowings.
• The BN relationship reduces common-stockholder economics: carried interest is allocated to BN at 100% for mature funds and 33.3% for current, new and open-ended funds, while BN also holds redeemable non-controlling interests tied to carried-interest entitlements.
• Reported earnings contain substantial valuation sensitivity: 2025 unrealized carried interest was $209 million, versus a $9 million unrealized loss in 2024, while realized carried interest was zero.